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Rumor: The9 Acquires Overseas Game Developer, 1/29/10

Chinese game developer and operator The9 (Nasdaq: NCTY) has quietly acquired U.S.-based game developer Red 5 Studio for an unknown sum, according to an industry insider.

Red 5 Studio was started in September 2005 by former members of the World of Warcraft development team at Blizzard Entertainment. A senior executive at The9 confirmed the news, describing it as The9's first strategic investment aimed primarily at strengthening product R&D, and part of an internationalization strategy. When asked whether The9 had purchased a controlling stake, the source said that the deal had not yet reached the acquisition stage.

Red 5 Studio is currently developing an online game aimed at the Asia market, but details have yet to emerge.

Keywords: Red 5 Studio Blizzard The9 Internet NCTY online gaming WoW M&A game developer overseas


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