Media conglomerate The Walt Disney Co. has decided to cooperate with leading Chinese online game operator Shanda, in the hope of expanding its business presence in China.

Under their agreement Shanda will develop and operate an online game based on Disney's most popular cartoon characters, announced the two companies on Wednesday.

The game, which is different from traditional online games, will be developed for a broader range of Chinese users, including young and female online game players. It will be available in China for open testing next spring.

"The market for online games in China is large and growing, "said Mark Handler, executive vice president and managing director of international department of Walt Disney Internet Group.

The company will also look to bring more of its online content to China's interactive entertainment market, said Handler.

One of the largest online game operators in China, Shanda currently operates 12 online games. Its concurrent game users peaked at 2.45 million in the first quarter of 2006.

According to the State Press and Publication Administration, China's online game industry netted more than 3.7 billion yuan (US$460 million) of revenue, and Shanda contributed about half.

(Xinhua News Agency May 25, 2006)