Numbers Game: China’s The9 Invests in Red 5 Studios

March 22, 2010 -

Chinese game developer and operator The9 Limited has entered into an agreement with U.S. online game developer Red 5 Studios that will see the former acquire a “majority interest” in the latter for approximately $20.0 million.

The9 previously operated World of Warcraft in China, before losing the WOW license to its Chinese rival NetEase. The9 still operates games such as FIFA Online 2 for Electronic Arts, in addition to its own games, such as World of Fighter and Atlantica. In its most recently reported quarter, The9 reported a 94.0 percent decrease in revenues to approximately $3.7 million U.S., versus the same period from a year earlier. It cited the loss of its WOW license, which expired on June 7, 2009, as the main reason for the drop.

Given that Red 5 is made up of former executives and game developers from WOW-creator Blizzard Entertainment, the deal seems to make a lot of sense, at least on paper. Red5, however, says that it “can’t tell you" what it's working on.

Zub Zhu, The9’s Chairman and CEO, said about the deal, “With the acquisition, The9’s global strategy is beginning to take shape. It will further enhance our game development capability and diversify our game portfolio and pipeline.”

Zhu will also take over as President when current President’s Xiaowei Chen term expires on May 16 of this year. Chen’s contract was not renewed.

The9’s market cap of approximately 176.0 million pales in comparison to its rivals like NetEase (5.18 billion), Shanda Interactive (2.78 billion) and Sohu.com (2.07 billion).


Comments

Re: Numbers Game: China’s The9 Invests in Red 5 Studios

The9 has a very small market cap compared to its rivals, but this can change quickly in this dynamic market. More and more Chinese companies are buying assets around the world, including Canada and USA.

John,

Bad Credit Loans

Re: Numbers Game: China’s The9 Invests in Red 5 Studios

I bet Actiblizz is pissed about switching WOW operators- given the mess it stirred.  So much for saving a few dollars.

Also, I wonder if World of Fight will ever have a shot at a stateside release.

 
Forgot your password?
Username :
Password :

Poll

Which video game platform are you most thankful for?:

Shout box

You're not permitted to post shouts.
MechaCrashI held off on Civ:BE because I am pretty sure it'll get a bigger discount during the Christmas sale.11/26/2014 - 11:09pm
MechaTama31I'm sorely tempted by Civ: BE, but I have to stay strong and remember what it felt like to be repeatedly kicked in the junk by Civ V...11/26/2014 - 10:58pm
MechaCrashNah, just providing more proof that GGers are lying when they claim it's really about ethics in game journalism and not a proxy war against feminism.11/26/2014 - 9:58pm
MaskedPixelanteMSS is Murdered: Soul Suspect.11/26/2014 - 8:34pm
Andrew EisenWhy the interest in Ghomeshi? Is it relevant to something we've been discussing? (Not saying it's not but it seems a rather random thing to bring up.)11/26/2014 - 6:39pm
WonderkarpJian Ghomeshi arrested on sex assault charges, released on $100K bail http://www.citynews.ca/2014/11/26/jian-ghomeshi-arrested-on-sex-assault-charges-released-on-100k-bail/11/26/2014 - 5:55pm
WonderkarpJian Ghomeshi to #Gamergate: Our culture’s toxic masculinity crisis on display http://www.salon.com/2014/10/27/jian_ghomeshi_to_gamergate_americas_toxic_masculinity_crisis_on_display/11/26/2014 - 5:55pm
WonderkarpI saw that. Amiibos are pretty awesome. I have 10 now :P11/26/2014 - 5:49pm
Matthew Wilsonon a weird side of smash news, a level 50 Amiibo almost won a tournament. http://www.siliconera.com/…/story-fox-amiibo-nearly-won-su…/ I guess Nintendo made the cpu ai better.11/26/2014 - 5:44pm
WonderkarpAny of you guys watch Game Grumps? They have an episode detailing alot of the bugs in the hilariously bad Sonic Boom https://www.youtube.com/watch?v=O3Jb3A0HLe4&list=UU9CuvdOVfMPvKCiwdGKL3cQ11/26/2014 - 4:19pm
Andrew EisenI'm blanking. What's MMS?11/26/2014 - 4:16pm
james_fudgeI keep an eye on it for really good deals11/26/2014 - 4:00pm
MaskedPixelanteEhh, MSS is only half off, I can wait for it to go under 1011/26/2014 - 3:48pm
NeenekoWhich is why I completely ignore the site.11/26/2014 - 3:15pm
james_fudgeAHHH Someone bar the door and keep the kids away from the credit cards!11/26/2014 - 3:14pm
Neo_DrKefkaThe Ralph Retort is a toxic mess and the guy is literally building his career on the back of the GamerGate movement. Whether you believe GamerGate is right or wrong this is a man profiteering on this war.11/26/2014 - 2:56pm
WonderkarpTHE STEAM SALES HAVE BEGUN!11/26/2014 - 2:16pm
MaskedPixelanteUnless you have said DLC already, then you can get the equally broken FarCry 4.11/26/2014 - 2:15pm
WonderkarpI love Boogie. He's awesome.11/26/2014 - 2:02pm
PHX Corphttp://kotaku.com/ubisoft-apologizes-for-assassins-creed-unity-with-free-1663768202 [Sarcasm]Ubisoft Apologizes for making a broken game, gives out free dlc for said broken game[/sarcasm]11/26/2014 - 1:53pm
 

Be Heard - Contact Your Politician