The9, a Chinese company best known for operating the Mainland licence of World of Warcraft, has bought a minority stake in Korean Company G10. G10 developed the popular Audition titles; under the terms of the agreement, The9 will get the stake for a cash investment of $38 million USD. G10 execs seem to be pleased they'll have more formal ties to a big Chinese player (and a nice little cash infusion), and The9 will hopefully get better support for G10 products. Hopefully this deal won't go down in flames like a couple of other Chinese-Korean deals I can think of. Full release after the jump.
The9 Limited Announces Equity Investment in G10 Entertainment
SHANGHAI, China, April 23 /Xinhua-PRNewswire/ — The9 Limited (Nasdaq: NCTY) ("The9"), a leading online game operator in China, today announced an equity investment in G10 Entertainment Corp. ("G10"), a leading game developer in Korea. Under the terms of the investment, The9 has acquired a minority stake in G10 in exchange for a cash investment of approximately US$38 million.
Mr. Jun Zhu, The9's Chairman and Chief Executive Officer, commented: "G10 Entertainment is a leading game developer, especially in the advanced casual game arena. Its Audition game franchise enjoys high popularity and a strong user base in China. The9's equity investment in G10 will strengthen the existing partnership between the two companies and further motivate G10 to provide the best support to The9's operation of Audition 2 in mainland China."
Mr. Kee Young Kim, the Chief Executive Officer of G10, said, "We are very excited that The9 becomes one of our key investors as we see this equity infusion as a recognition of G10's achievements in developing games and creating entertainment content. The9's outstanding game operation expertise will be a huge advantage in bringing G10's products to the growing Chinese online game market. We also look forward to learning from The9's valuable experience gleaned from the day-to-day operation in the local market, and integrating the ideas and suggestions from The9 into our game development process. Our people and teams at G10 are empowered to continue delivering high-quality game products and providing our best support to Audition 2, our prize product to be operated by The9 in mainland China."