500.com appears to be on the diversity trail as lottery income dries up following Chinas suspension of online lottery sales.
Hit hard by the Chinese governments now 18-month-old anti-corruption suspension of online lottery sales, the Hong Kong-based online lottery firm 500.com appears to be diversifying to survive.
Media reports from the region Friday indicate that the company has made an acquisition move on a social poker platform enterprise, acquiring a 51 percent stake in Qufan Internet Technology Inc. and Shenzhen Qufan Internet Technology Co. Ltd for a consideration of RMB 110.5 million – about US$16.2 million.
Some observers have speculated that 500.com management may be attempting a reprise of last Mays sale of online payment processor Sumpay for a quick profit after owning the company for just 5 months, but there is at present no indication that this might be the companies intention.
The loss of online lottery revenues since the Chinese online sales ban was imposed is a compelling reason to hold on to companies that are at least generating some revenue.