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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 1.0853 Neutral  
    GBP/USD 1.2680 Neutral  
    USD/JPY 150.49 ↑ Buy  
    AUD/USD 0.6533 ↑ Buy  
    USD/CAD 1.3506 ↑ Sell  
    EUR/JPY 163.32 Neutral  
    EUR/CHF 0.9549 Neutral  
    Gold 2,042.05 ↑ Buy  
    Silver 22.773 ↑ Buy  
    Copper 3.8457 ↑ Buy  
    Crude Oil WTI 77.58 ↑ Buy  
    Brent Oil 81.67 ↑ Buy  
    Natural Gas 1.736 Neutral  
    US Coffee C 180.10 ↑ Buy  
    Euro Stoxx 50 4,864.15 Neutral  
    S&P 500 5,069.53 ↑ Sell  
    DAX 17,423.23 ↑ Sell  
    FTSE 100 7,684.30 Neutral  
    Hang Seng 16,549.00 ↑ Buy  
    Small Cap 2000 2,029.05 ↑ Sell  
    IBEX 35 10,138.40 Sell  
    BASF 46.330 ↑ Buy  
    Bayer 28.59 ↑ Buy  
    Allianz 245.65 Neutral  
    Adidas 188.20 Neutral  
    Lufthansa 7.237 ↑ Buy  
    Siemens AG 174.90 ↑ Buy  
    Deutsche Bank AG 12.302 ↑ Buy  
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