China’s Giant Forms New Subsidiary
Chinese Internet company Giant Interactive Group has confirmed a new internal reform of its marketing department will become an independent company named Juxin Network.
This means Giant’s marketing department will not only be able to promote Giant’s online games, but also can provide marketing services to game projects of other companies. At the same time, it marks Giant’s first step to explore the local promotions based on its reform.
In May 2009, Giant launched an internal property rights reform program to support the partition of new projects into new subsidiaries, with the parent company owning a 51% stake and the executive team of the subsidiary owning a 49% stake. After that, Giant set up five subsidiaries based on five new online games. This new system enables employees to share more results of the subsidiaries and stimulates the enthusiasm of the teams.
A representative from Juxin Network told local media that under the new system, employees’ salaries will be divided into basic wages and payments for performance, and motivated staff with strong working capacities will gain many more benefits.
Juxin Network is now responsible for the promotion of several online games, including XT Online, King of Kings III, and Dragon Soul operated by Giant as well as Dan Dan Tang and Xenjo Online operated by other online game companies.