CDC Games, a subsidiary of CDC Corporation (CHINA), says it is investing an undisclosed sum of money in Xiakexing Network Technologies Company.
Xiakexing Network, or XNet, is a China-based developer of online games. The investment in XNet is structured in multiple tranches with the valuation at each tranche based on the achievement of certain milestones. CDC Games will have exclusive global distribution rights for all games developed by XNet and Peter Yip, CEO of CDC Games, will serve on the board of directors of XNet upon closing of the investment. The investment by CDC Games is subject to the successful completion of customary due diligence and final documentation.
Through its participation in the CDC Games Studio program, XNet will develop and publish new games in partnership with CDC Games. XNet is the fourth CDC Games investment, in addition to Gorilla Banana, Mgame and Auran.
The CDC Games Studio program enables the company to establish strategic relationships with selected games development partners to accelerate the development of new, original online games for China and other targeted global geographies.