Question-and-Answer Session
Operator
(Operator Instructions)
Our first question comes from Tony Gikas with Piper Jaffray. Please go ahead.
Tony Gikas - Piper Jaffray
Good morning, gentlemen and congratulations on a terrific quarter. A couple of questions; recently, one of your competitors partnered with one of the large U.S. publishers for some sports properties. In your opinion, what’s your opinion of this type of a relationship? Do you expect to see a large number of these licensing opportunities with established players in the U.S.?
Jun Tang
You probably saw the news, as you mentioned. It shows the huge potential of the Chinese online game market is once again approved by the large companies, like EA. Actually, w are pleased that more and more industry players have recognized the value of the market, especially in the Chinese market. EA’s participation will make the competition of the Chinese online game market more organized and healthy. From that perspective, we absolutely welcome EA’s presence.
As the leader in the Chinese online game market, Shanda is never afraid of any competition with the global companies. It has been shown that local companies will have more advantage over the foreign competitors in the online game market and certainly Shanda is always very open to cooperate with global industry players.
Tony Gikas - Piper Jaffray
Just a follow-up, could you provide us with an update on the licensing opportunities? Are there a large number of good intellectual properties available in the market and are they affordable? Is pricing remaining stable or is pricing increasing?
Jun Tang
Actually, we are in talks with many players in Korea, Japan and the U.S. and some of them are in pretty good condition now.
In terms of the pricing, in this highly competitive market, the pricing for the license fee is getting higher and higher, but we at Shanda, we always try to balance the investments and return. From our past experience, I think we are doing very good in that sense and I think we will get a better return, no matter how much we pay for the license fees.
Tony Gikas - Piper Jaffray
Thank you. Great job.
Operator
Your next question comes from the line of Dick Wei from JP Morgan. Please go ahead.
Dick Wei - JP Morgan
Thanks for taking my questions and congrats on a very strong quarter. I have two questions. The first question is if you can give us an update in the in-game advertising in the first quarter. That would be great.
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