Shanghai-based online game developer and operator Giant Interactive and entertainment firm Huayi Brothers Media have formed a joint venture as part of a RMB 70 million ($10.5 million) deal.
The new entity, Beijing Huayi Giant Information Technology Co., will house the intellectual property of free-to-play MMORPG King of Kings III and its development team from Giant. It will also develop another 3D online title based on one of Huayi's films and dramas in the second half of 2011.
Huayi invested that RMB 70 Million for a 51 percent stake in the joint venture, according to an announcement from the media company translated by China-focused research firm Pacific Epoch. Giant and the King of Kings III development team will serve as minority shareholders.
Huayi Giant IT expects to generate profits of RMB 14.4 million ($2.1 million) each year from 2011 to 2013. Giant says it believes this joint venture represents "an ideal opportunity to explore the convergence of online games with various other entertainment mediums."
"We are pleased to commence this venture with Giant Interactive and are confident that this partnership will be beneficial to both companies," says Huayi's chairman Zhongjun Wang. "Since the development of King of Kings III, Giant has made large strides to tailor the game to the Chinese audience"
"Furthermore, they continue to provide constant updates and recently introduced the game's second expansion pack. We believe the oint venture will provide for continued focus on the game's development, while simultaneously opening new avenues for attracting new players and ultimately driving revenue."
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