Shanda Interactive (NDAQ:SNDA) moved higher today as rumors surfaced that Google, Inc. (NDAQ:GOOG) was interested in acquiring Chinese literature site, Qidian (www.cmfu.com), owned by SNDA for between $400 and $600 million. This news comes after several tech acquisitions by search and media giants Yahoo, Google, and eBay in 2006. While both companies declined to comment, this is certain a story worth watching closely as a $400M+ acquisition would account for around a quarter of the company's current market cap. The stock is currently trading up 6.5% on the news.

Shanda Interactive Entertainment Limited (Shanda Interactive) is an interactive entertainment company and an operator of online games in China. In addition to the Company's portfolio of online games that users play over the Internet, it provides users with access to additional content and services through Shanda Interactive's EZ Center platform, including literature, music, movies, radio, finance, e-commerce, travel, news and educational programs.

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