Chinese firm strengthens its development arm with buyout of local studio
Chinese online gaming operator ChangYou has acquired its subsidiary developer, 7Road.
ChangYou acquired a majority stake in MMO developer 7Roads for $100 million in 2011. The remaining stock (28.074 per cent) will be purchased for around $78 million, at which point 7Road will be a wholly owned subsidiary of ChangYou.
Road7 created the turn-based fantasy MMO Wartune, which is playable in China and western countries.
As part of the agreement, ChangYou’s president Dewen Chen has been appointed as the chairman and acting chief executive officer of 7Road. Kai Cao has resigned as a director and CEO of 7Road.
“With this acquisition, ChangYou is deepening our investment in web games, and we look forward to creating even more high-quality web games for our players to enjoy,” said Chen.
The acquisition is expected to be completed on May 31st.
Earlier this week, the firm released its first quarter financial results, which showed that revenues were up 19 per cent year-on-year.