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 :

Shout box

You're not permitted to post shouts.
NeenekoI would hope not. Though it is not unheard of for store specific cards to be pretty good.07/30/2014 - 8:17am
E. Zachary KnightDoes anyone, or at least any intelligent person, expect a retail branded credit card to be anything close to resembling a "good deal" on interest rates?07/30/2014 - 7:13am
SleakerGamestop articles popping up everywhere about their ludicrous new Credit card offerings at a whopping pre-approval for 26.9% APR07/29/2014 - 10:19pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/07/podcasting-patent-troll-we-tried-to-drop-lawsuit-against-adam-carolla/ the podcasting patent troll scum is trying to turn tail and run.07/29/2014 - 9:50pm
MaskedPixelanteOf course it's improved. At launch, Origin was scanning your entire hard drive, but now it's just scanning your browsing history. If that's not an improvement, I dunno what is!07/29/2014 - 8:59pm
Papa Midnighthttp://www.escapistmagazine.com/articles/view/video-games/columns/experienced-points/12029-Has-EAs-Origin-Service-Improved-Any-Over-the-Last-Two-Years07/29/2014 - 8:25pm
Sora-ChanSo it's just a matter of having better emulation software. If it can be done with a 3DS game, with all the memory and what not it takes up, it can be done with a GBA title through emulation.07/29/2014 - 7:30pm
Sora-ChanOther VC titles for the NES and Gameboy had the same setup where you couldn't access the homescreen without quitting out of the game til a later update when those games were released for the public outside of the founder program.07/29/2014 - 7:28pm
Sora-Chanthe 3DS can, and does, run GBA games, as seen by the founder gifts, which included a number of GBA titles. As for running GBA games and still having access to the home screen, I beleive it's more of the game emulation software needs to be updated.07/29/2014 - 7:27pm
Matthew Wilsonthe 3ds already swaps os's with the original ds. plus I dont think people expect miverse interaction when playing a gba game.07/29/2014 - 6:06pm
MaskedPixelanteBut that's not the issue, the 3DS is perfectly capable of emulating GBA games. The problem is that it doesn't have enough available system resources to run it alongside the 3DS OS, and thus it doesn't have access to stuff like Miiverse and save states.07/29/2014 - 5:45pm
Matthew WilsonI am well aware that it requires more power, but if a GBA emulator could run well on a original psp, than it should work on a 3ds.07/29/2014 - 5:36pm
ZenThe reason the SNES could run Gameboy, or the Gamecube could run GBA was because their adapters included all of the necessary hardware to do it in the respective add-ons. The systems were just conduits for control inputs and video/sound/power.07/29/2014 - 4:51pm
ZenMatthew: Emulation takes more power than people realize to run a game properly. You can make something run on less, but Nintendo...as slow as they are at releasing them..makes them run as close to 100% as possible. Each game has its own emulator for it.07/29/2014 - 4:47pm
Matthew Wilsonkind of hard to believe since the 3ds is atleast as powerful as the gamecube hardware wise.07/29/2014 - 4:27pm
MaskedPixelanteYes, the 3DS has enough power to run 16-bit emulators, but not at the same time it's running the 3DS systems themselves. You could run the games, but you wouldn't get save states or Miiverse.07/29/2014 - 4:04pm
InfophileRunning GBA on 3DS shouldn't be hard. The DS had flashcarts sold for it that added just enough power to emulate GBA and SNES games, so the 3DS should have more than enough natively.07/29/2014 - 3:37pm
MaskedPixelanteIt's a bunch of people whining about boycotting/pirating Trails in the Sky FC because XSEED didn't license the Japanese dub track, which consists of about 10 lines per character.07/29/2014 - 11:27am
Sleaker@MP - devolver Digital issued a twitter statement saying they would replace the NISA pledge.07/29/2014 - 10:57am
E. Zachary KnightIs that a discussion about RIAA member music labels?07/29/2014 - 10:48am
 

Be Heard - Contact Your Politician