First Shanda was projected to have big earnings and was a hot target for investors. Then, after they failed to meet projected targets, their shares kept slipping until they were forced to close their Beijing office and layoff workers. They were named as one of the “Five Stocks that Tanked” in 2005 by financial Web site The Motley Fool in December.

After their strange foray into health food and beverages, now they are teaming up with EMI music to offer songs over the internet. Shanda is making this deal to further their EZ Home online entertainment service. Shanda, while know for being a big player in online computer games is making some strange moves with all of this. Granted, they are taking a big hit in that sector and they are probably just seeking to diversify themselves for stability.

Really though, I don’t see how their business analysts go from online games to beverages. Also, how can they even dream of offering music online (for sale). I see they are just hoping that people won’t notice the thousands of Chinese websites where you can very easily get any mp3 you want, even foreign songs. Think the Chinese government will crack down on these sites? Just check out Baidu’s and Yahoo’s mp3 search where you can find pretty much any song you like at good quality instantly and then tell me what you think. I was very suprised first time I heard about these two market leaders are blatantly offering illegal mp3 downloads.

Who knows what the future holds for Shanda. They will probably reconsolidate and continue trying new market angles. They are too big of a company to be brought down in one fell swoop. Though, they seriously need to reconsider what they are trying to do! Next thing you know we’ll be seeing Shanda shampoo and conditioner. Come on guys, open your eyes!