Shanda Games (GAME.NASDAQ) is seeking acquisition opportunities in China and abroad, and may spend US$200 million in the next year on companies that will expand its game development or publishing reach, the Wall Street Journal reported. Alan Tan, Shanda Games' chairman and CEO, said Wednesday that the company - a unit of Shanda Interactive Entertainment (SNDA.NASDAQ) - has about US$500 million in cash and is looking to fuel growth by expanding overseas and adding more social networking features to its games. Last year, Shanda Games acquired US-based online game network Mochi Media and Korean game developer Eyedentity for US$80 million and US$95 million, respectively. In the first quarter of 2011, Shanda Games reported a 10% increase in revenue from the previous year to US$193.7 million, but a 5% decrease in net profit to US$48.5 million, as costs for product development, sales and marketing costs rose. According to data from research firm Analysys International, Shanda Games holds a market share of 17.6% in online games that are played through downloadable software, trailing only Tencent (0700.HK), which has a 30.8% share.