China-based online game developer and operator Giant Interactive has announced that it has acquired a 25% stake in Chinese social networking service provider Five One Network Development Co., for approximately $51 million.

Founded in 2005, 51.com claims approximately 120 million registered users, with 31.4 million monthly unique visitors logging in 18 times per month on average. Its average daily page views are as high as 350 million, while its average monthly page views exceed 10 billion.

Giant Interactive's catalog of titles include free-to-play MMORPG ZT Online, which was voted the most popular online game in China in 2006, according to International Data Corporation. The company has three other forthcoming titles, King of Kings III, Empire Sports, and Giant Online, the last of which began open beta testing in March 2008. Giant maintains a nationwide distribution network to sell prepaid cards and game points for its games.

Said Giant Interactive chairman and CEO Yuzhu Shi: "With this strategic investment in the largest independent social network service provider in China, we are positioning Giant at the forefront of the trend towards increasing convergence between online games and social networking communities. Enhancing the community-building and social networking aspects of our online games has been one of our key strategic initiatives."

He continued: "The combination of Giant's online game platform and expertise at free-to-play game monetization with 51.com's social networking business provides a unique opportunity to broaden our player base, expand our community-building opportunities, reinforce user stickiness, and extend the lifecycles of our games. The 51.com management is a well-known team of industry pioneers with strong operating capabilities and a deep understanding of their customers. We believe this investment has the potential to create significant long-term value for both Giant and 51.com shareholders, and will help us to remain at the vanguard of the online game industry in the coming years."