The9 Ltd. Sponsored ADR(NCTY.US) acquired a 51% stake in a gaming joint venture for $16.2 million.

The9 Ltd. Sponsored ADR (NCTY.US) announced on Friday that its wholly-owned subsidiary, Shanghai The9 Ltd. Sponsored ADR Information Technology Co., Ltd., has reached a final agreement with Shanghai Zhongshun Hengxin Network Technology Co., Ltd. ("Zhongshun") to acquire 51% equity of Shanghai Zhongshun Shun Network Technology Co., Ltd. ("Joint Venture Company"). Zhongshun will inject its two self-developed mobile games with exclusive copyrights into the Joint Venture Company: "Ultraman: Ultra Time and Space Heroes" and "Glory All-Star". The after-tax profits of the Joint Venture Company will be distributed quarterly according to the shareholding proportions of the parties involved. The consideration for the 51% equity interest in the Joint Venture Company includes RMB 69 million (approximately $9.7 million) and restricted shares of The9 worth RMB 46 million (approximately $6.5 million). The payments for cash and restricted shares will be made in installments and will be based on the actual profits realized by the Joint Venture Company in the next three years as committed by Zhongshun.