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The9 lines up $24m investment in Red 5

The9 lines up $24m investment in Red 5

Tue 22 Oct 2013 9:45am GMT / 5:45am EDT / 2:45am PDT
PublishingDevelopment

Deal with Oriental pearl values Firefall at $100 million

Red 5 Studios' parent company, The9, intends to issue around $24 million in common stock to Shanghai Oriental Pearl Culture Development Ltd.

The deal is still in a preliminary, non-binding stage, but if it is approved Oriental Pearl - a Chinese culture and entertainment development outfit - will become one of Red 5's leading minority shareholders with a 20 per cent stake in the company.

The value of the shares is based on a pre-money valuation of Red 5's forthcoming online shooter, Firefall. According to a statement released today, Firefall is valued at $100 million.

The9 acquired a majority stake in Red 5 Studios - founded in 2005 by former Blizzard staff - in March 2010. The company announced Firefall in September 2010, but the game only entered open beta in July this year.

Red 5 recently laid off 10 per cent of its workforce. The redundancies were attributed to an internal reorganisation as Firefall moved towards its full release.

1 Comment

Richard Gardner
Artist

123 32 0.3
Red9 seem to have had a rocky road since their inception, I'm surprised Firefall was valued so highly. Considering its investor is Asian I'm assuming it resonates a lot more with the Asian market. Free to play seems to be throwing up some weird cases, you see bad games making obscene amounts of money and more polished games falling under. It really feels like there is a secret ingredient beyond graphics and gameplay. Lets hope Firefall has it.

Posted:10 months ago

#1

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