The9 Limited Announces Red 5 Studios Inc. Signing of Share Purchase Agreement with Shanghai Oriental Pearl Culture Development Co., Ltd.
SHANGHAI, Jan. 24, 2014 /PRNewswire-FirstCall/ –The9 Limited (NASDAQ: NCTY) (“The9″), an online game developer and operator, today announced that its subsidiary, Red5 Studios, Inc. (“Red 5″), and two shareholders have entered into share purchase agreements for the issue and sale of Series B Preferred Stock and common stocks of Red 5 to Shanghai Oriental Pearl Culture Development Co., Ltd., (“Oriental Pearl”), respectively, for an aggregate of approximately $23 million consideration, subject to adjustment as set forth in the share purchase agreements. Upon the closing of the transaction, Oriental Pearl will be a 20.01% minority shareholder of Red 5 and Red 5 will remain a subsidiary of The9.
Oriental Pearl is a wholly-owned subsidiary of Shanghai Oriental Pearl (Group) Co., Ltd. (SH?600832), which is a public company listed in China and is engaged in culture and entertainment industry in China.
The closing of the transaction is subject to certain conditions specified in the share purchase agreements. There can be no assurance that the closing will be completed.
About The9 Limited
The9 Limited is an online game developer and operator. The9 develops and operates, directly or through its affiliates, its proprietary MMO games including Firefall and Qiji2. The9 also develops and operates web games and social games. In 2010, The9 established its Mobile Internet Unit to focus on mobile Internet business. The9 develops and operates three mobile platforms under The9′s Mobile Internet Unit including mobile game platform The9 Game Zone, mobile advertising platform Juzi and mobile reading platform KingReader. In 2013, The9 formed a joint venture with Shanghai ZTE to develop and operate Smart TV business.
Firefall is a Free-to-Play MMO Shooter set in a unique and beautiful science fiction universe where players are part of the last remnant of humanity. Earth is under attack by an aggressive energy storm called the Melding and a mysterious race, known as the Chosen. Firefall promises a never before seen original genre, blending the best of true shooter gameplay with rich MMO world elements.
Visit www.firefallthegame.com for more information.
About Red 5 Studios
Red 5 Studios is a AAA online game developer located in California that is dedicated to bringing together millions of gamers from around the world by creating rich, immersive, shared worlds and gaming experiences. Red 5 Studios believes that online games and persistent worlds offer a critical platform for fun and compelling social interactions.
Visit www.red5studios.com for more information.
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SOURCE The9 Limited