Shanda Interactive Entertainment Ltd., a Chinese operator of online games, has confirmed that Internet giant Tencent has bought into the company, without disclosing further details, Yicai.com reported.

Shanda, as a domestic online games maker only second to the two giants Tencent and NetEase, had been preparing for an Initial Public Offering in China after it had privatized and withdrew from the American stock market in 2015.

Insiders believe that the introduction of strategic investors such as Tencent, marks the last round of adjustment and optimization of its equity structure before it goes public.

In fact, except for Shanda, Tencent has extended its reach to many domestic game companies, including Xishanju and Changyou.

For surviving small and medium game firms, whether to choose between Tencent or NetEase, or to continue making a living independently, is an issue to be pondered.