The9 Limited Announces A Partnership With Qihoo 360.
The9 Limited, an online game developer and operator, announced that The9 and Qihoo 360 Technology Co., Ltd. had entered into an agreement today to form a joint venture. Pursuant to the joint venture agreement, The9 and Qihoo 360 will each own 50% equity interest in the joint venture and share profits according to this ratio.
The9 and Qihoo 360 agreed that the joint venture will publish and operate Firefall, a MMO Shooter game developed by Red 5 Studios, Inc., a subsidiary of The9, for a three-year term in China and may be renewed for additional two years upon satisfaction of certain conditions. The license and distribution agreement will be signed separately between the joint venture and the developer.
The9 Limited is an online game developer and operator. The9 develops and operates, directly or through its affiliates, its proprietary MMO, web and mobile games including Firefall and NBA web and mobile games. In 2010, The9 established its Wireless Business Unit to focus on mobile internet business including mobile reading platform KingReader and mobile advertising platform Juzi . In 2013, The9 formed a joint venture with Shanghai ZTE to develop and operate home entertainment set top box business.
Qihoo 360 Technology Co. Ltd., or Qihoo 360, is a software company known for its antivirus software (360 Safeguard, 360 Mobile Safe), Web Browser (360 Browsers), and Mobile Application Store (360 Mobile Assistant). It was founded by Zhou Hongyi and Qi Xiangdong in June 2005. Qihoo 360 had 450 million users for its Internet Security products and 207 million users for its Mobile Antivirus products as of December 2012.
Qihoo 360 started with selling third-party antivirus software online. Soon it realized the potential of the freemium business model in the Chinese market and started to provide its own antivirus products free of charge. In short time, Qihoo 360′s security products gained popularity and market share in China. The revenues are generated by leveraging its massive user base through online advertising and services like online games, remote technical support, and system integration.