The9 exchanges half of its shares in Red 5 for stake in Cayman Islands cashmere corp

    
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Chinese MMO operator The9 has exchanged about half of its shares in Red 5 for nearly 153.9 million shares of L&A International Holding Limited. The9 previously owned a majority of the Firefall studio’s stock at 63.4%; the exchange represents a 30.6% equity interest in Red 5.

L&A International Holding Limited is a Cayman Islands holding company that… manufactures cashmere clothing. Each company will now hold an equity interest in the other as a hedge against market instabilities in their, ahem, rather different industries. It’s also possible that one or the other plans to liquidate its new shares to raise cash.

Of particular interest as a conversation piece is this quote from the statement: “The total consideration for the transaction for all the participating equity holders, including the company, is approximately US$76.5 million, implying Red 5’s valuation at US$170 million.”

Source: PR Newswire via Reddit. Thanks, I-Spy!
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KaiserPhoenix
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KaiserPhoenix

170 million for red 5… The actual worth is about 10% of that, and even that would be hyper optimisitc.
I doubt Firefall can even reach the userbase of Battleborn.

Faction 3
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Faction 3

Red5 / Firefall collectively is worth 170million dollars, and at one time Funcom, with titles such as TSW, The Park, and AoC, was in dire straits and on the cusp of defaulting?

How?!

Apparently these Chinese investors must have money to throw away. Literally.

Ket_Viliano
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Ket_Viliano

BalsBigBrother  The adults responsible for the financials are probably resting in the morgue.

MostlysaneUK
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MostlysaneUK

Dantos MostlysaneUK Agreed.  I just find it interesting that of all the countries in the world, they’ve picked a known off shore tax haven.

Trinco
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Trinco

Skyewauker Trinco Did you read anything?!
The mentioned $170 million is the Red 5 part, ffs…

Skyewauker
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Skyewauker

Trinco Skyewauker The9 owns Red 5….

Trinco
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Trinco

Skyewauker Trinco Isn’t that The9, and not Red 5?!

Skyewauker
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Skyewauker

Trinco They published WoW in china for like 4 years or something as well.

Dantos
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Dantos

MostlysaneUK Alot of chinese companies are buying and investing in assets outside the country in an effort to protect their money from any kind of wonky currency manipulation that may happen now that their economy is slowing down and transitioning. We saw a chinese steel company, recently  buy up Jagex, probably in an effort to do just that.

JudgeDavid101
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JudgeDavid101

Chinese MMO companies are an epic tale just by themselves, let alone their games.