Chinese internet giant Tencent is expected to dominate the market for online literature after completing its acquisition of Shanda Cloudary, Shanda’s online literature company, reports the China Business News.

Tencent and Shanda recently reached an agreement to jointly set up a new company, China Reading, in the online literature space. A number of literary websites affiliated with Tencent Literature and publishing institutions under Shanda Cloudary will come under the management of the new company following the acquisition.

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China-based Shanda Literature announced an adjustment to its Cloudary in which the company will divest its content and hardware businesses.

After the adjustment, Cloudary will still be responsible for Shanda’s Bambook e-reader. However, the Cloudary app will be integrated with that of Qidian.com, another Internet literature branch of Shanda Literature. This adjustment aims to solve the resource redundancy problems of the two parties.