Online Gamer Red5 Studios Reveals $20 Million Investment From China’s The9
Chinese online game developer The9 Limited has acquired a majority stake in Red 5 Studios, the internet gamer led by members of the team behind World of Warcraft, for roughly $20 million. The investment comes just three months after Irvine, CA-based Red 5 initiated a major restructuring that resulted in as many as 30 staffers being laid off. Around the same time, the company said it had taken on additional cash from an unnamed
Red5 Studio is well known for their World of Warcraft.
Its a surprise that they have sold their majority stake to The9.
China will be a perfect market for Red5 for online gaming, but if you are entering this market by selling your majority stake then what is point? I may be wrong, but this is not wise if management is thinking about growth of their assets. When we hear the words like restructuring and layoffs its scary.
Any ways, for gamers like me it hardly makes difference that who own the company (red5 or the9) till they are developing games like warcraft.
“Their” World of Warcraft? The only ex-Blizzard employee left at Red5 is Mark Kern, and one person does not an MMO make.