Chinese online game developer and operator The9 announced that its joint venture Oriental Shiny Star Limited has reached an agreement with South Korean game developer Smilegate Entertainment for the exclusive operation of Cross Fire 2 in mainland China.
With this agreement, Oriental Shiny Star will gain the exclusive rights to publish and operate Smilegate Entertainment's Cross Fire 2 in mainland China for five years.
To gain the exclusive rights, The9's JV will first pay USD50 million; and at certain development and operation milestones, the company needs to pay additional fees of USD450 million. Moreover, royalty payments may be applicable based on future sales performances.
Promoted by the news, The9's share price increased by USD0.59 to USD3.49, marking an increase rate of 20.34%. It has been 11 years since The9's IPO and the company's share price once reached over USD50, when it was still operating World of Warcraft and had more investors riding exuberance over expected Chinese gains.