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Activision Blizzard says NetEase rejects proposal to extend partnership

By Josh Ye HONG KONG (Reuters) -Activision Blizzard Inc, the U.S. video game developer behind hit franchise Warcraft, on Tuesday said its Chinese publisher NetEase (NASDAQ:NTES)...
Activision Blizzard says NetEase rejects proposal to extend partnership © Reuters. Copies of World of Warcraft: Mists of Pandaria video game published by Activision Blizzard, owned by Vivendi, are displayed in a shop in Rome, October 16, 2012. REUTERS/Tony Gentile
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By Josh Ye

HONG KONG (Reuters) -Activision Blizzard Inc, the U.S. video game developer behind hit franchise Warcraft, on Tuesday said its Chinese publisher NetEase (NASDAQ:NTES) Inc had turned down a proposal to extend their long-time partnership for six months.

In a statement on microblogging site Weibo (NASDAQ:WB), the U.S. firm's subsidiary Blizzard China said it contacted NetEase last week with a proposal to extend their partnership and that the Hangzhou-based company had declined.

Blizzard China said its game services will end on Jan. 23.

NetEase did not immediately respond to a Reuters request for comment.

The development comes after Activision Blizzard (NASDAQ:ATVI) in November said it would end its 14-year partnership with NetEase, the second-largest gaming company in China. The announcement sent shockwaves across the industry as the partnership was widely seen one of the most lucrative in video games.

NetEase, in a November earnings briefing, said it had made the utmost effort to negotiate but found the proposed terms requested by the U.S. company unacceptable.

NetEase then said it would have to discontinue Activision Blizzard's game service in China, the world's biggest gaming market, on Jan. 23.

With the demise of their partnership, Activision Blizzard was left without a Chinese publisher and said in December it was in talks with potential partners.

NetEase rose to become a gaming giant partly by publishing Activision Blizzard's games in China. The company has since accelerated its own game development capability, with in-house games now accounting for over 60% of revenue.

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EUR/USD

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EUR/USD

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    EUR/USD 1.0674 Neutral  
    GBP/USD 1.1981 ↑ Buy  
    USD/JPY 131.93 ↑ Sell  
    AUD/USD 0.6890 Neutral  
    USD/CAD 1.3462 Neutral  
    EUR/JPY 140.85 ↑ Sell  
    EUR/CHF 0.9887 ↑ Sell  
    Gold 1,881.20 Buy  
    Silver 22.200 Neutral  
    Copper 4.0060 ↑ Sell  
    Crude Oil WTI 75.40 Neutral  
    Brent Oil 81.95 Sell  
    Natural Gas 2.553 Neutral  
    US Coffee C 174.68 ↑ Sell  
    Euro Stoxx 50 4,202.65 ↑ Buy  
    S&P 500 4,100.85 ↑ Buy  
    DAX 15,292.85 Buy  
    FTSE 100 7,850.37 Buy  
    Hang Seng 21,298.70 ↑ Sell  
    Small Cap 2000 1,939.15 Neutral  
    IBEX 35 9,154.76 ↑ Sell  
    BASF 52.865 ↑ Buy  
    Bayer 58.90 ↑ Buy  
    Allianz 219.02 Neutral  
    Adidas 153.15 ↑ Buy  
    Lufthansa 9.640 ↑ Sell  
    Siemens AG 141.05 Sell  
    Deutsche Bank AG 11.493 ↑ Buy  
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