CDC Corporation's (CHINA) subsidiary CDC Games is making an undisclosed strategic investment in South Korea's MGame Corporation.
MGame is the developer of online games including Yulgang, CDC Games' licensed free-to-play game in China. Through this equity investment, CDC Games has changed from a licensee to MGame's largest external investor and has obtained exclusive distribution rights for MGame's next MMORP, Wind Forest Fire Mountain, in China.
CDC Games will be the company's largest external shareholder and John Lee, president of CDC Games Corporation, will serve as a board observer of MGame.
Founded in 1996, MGame launched its first online game in 1997 and subsequently launched one of the first MMORPG games in Korea. The company has over 750 employees in Korea and has offices in China, U.S. and Japan, and is hiring over 100 employees for a global game service.
"This investment underscores CDC Games' continuing evolution into a leading global developer of online games," said Fred Wang, chairman of CDC Games. "As we expand from a licensing partnership into a co-owner of the intellectual property, we will gain increasing ability to co-develop and distribute games that are culturally aware, entertaining and educational to the millions of online game users in China."