News > EA Buys Into The9
May 22, 2007
It appears EA has signed an agreement with The9, a Chinese online gaming operator. the deal gives EA a 15% stake in the company for the sum of $167 million. This is down from the 19% that was rumored back in April. In return, The9 will have exclusive rights to FIFA Online in China. Read on for the full announcement:
EA and The9 Announce Equity Investment and Exclusive Publishing Agreement for EA SPORTS FIFA Online in Mainland China
Strategic Partnership With The9 to Expand EA's Offering in China's Online Gaming Market
SHANGHAI, CHINA & REDWOOD CITY, CALIF., May 21 /CNW/ - Electronic Arts Inc. (NASDAQ:ERTS), the world's leading developer and publisher of interactive entertainment, today announced an equity investment in one of China's largest online game operators, The9 Limited (NASDAQ:NCTY) ("The9"). The two companies also announced a licensing agreement that gives The9 exclusive publishing rights for EA SPORTS FIFA Online in mainland China. Upon completion of the equity investment, EA will own approximately 15 percent of the common shares of The9. The investment is roughly US$167 million.
The agreement builds on EA's strategy of partnering with proven regional operators to bring online games to Asia, and The9's strategy of expanding its game product offerings in the Chinese market.
EA SPORTS FIFA is EA's leading international sports franchise and is seeing early online success in Asia. Last year, EA and Seoul-based Neowiz partnered to launch EA SPORTS FIFA Online in Korea, now one of Korea's most popular games, consistently ranked among top performers with more than 4.4 million registered subscribers. The9 has exclusive publishing rights for the game in mainland China.
"EA will be a strong partner for us in the rapidly expanding online game market in China," said Jun Zhu, Chairman and Chief Executive Officer of The9. "We are seeing strong interest in online sports games in China with the upcoming 2008 Beijing Olympics and the FIFA World Cup in 2010, and FIFA Online is set to be a top favorite in the Chinese market."
Hubert Larenaudie, President, EA Asia Online, said, "This is another significant step in EA's strategy to build an online presence in Asia. The9's proven expertise will be a tremendous advantage in bringing FIFA Online to a growing market and we look forward to partnering with them to bring the best online football gaming experience to millions of Chinese gamers and football fans."
*Eddie R Inzauto - Senior Editor, GameWad.com
