Chinese Internet security provider Qihoo 360 and online game developer and operator The9 will establish a joint venture.
Meanwhile, Qihoo 360 will become the exclusive operator for The9's online role-playing shooter game FireFall in China.
FireFall is developed by the American online game development team Red 5 Studios. Founded in 2005, Red 5 Studios is headquartered in California. In 2010, The9 acquired a majority stake in Red 5 Studios for USD20 million. In October 2013, Shanghai Oriental Pearl Culture Development Company invested USD23.946 million in the purchase of a 20.01% stake in Red 5 Studios, which means the market value of Red 5 Studios was about USD100 million at that time.
With the cooperation of the two parties, Qihoo 360 expects to gain more client-based gaming resources from The9 to further expand its territory in the gaming sector. In return, The9 will be able to gain more traffic portal access via Qihoo 360 to lower its traffic costs. Meanwhile, The9 will gain Qihoo 360's resource supports in the mobile Internet sector.
Financial terms and ownership structure of the joint venture were not disclosed.