Word is going around that loss-making Chinese iron miner Shandong Hongda is looking to buy British game developer Jagex for $300 million. Shandong Hongda reportedly wants to buy the developer of RuneScape, a popular MMORPG, to diversify its income streams. The iron miner is forecast to post a loss of $55 million for 2015 and wants to diversify to completely different industries as the metal markets are under severe pressure.
After beginning life as a village-owned iron ore mine in the early 1990s, it is bolting on Jagex, UK developer of online role-playing game RuneScape.
Incongruous diversification is also part of the zeitgeist. Old industry, such as steel mills and miners, are weighed down by overcapacity and debts and turning to new areas — from pig farming to property to finance.