Blizzard Entertainment, Inc. and NetEase.com, Inc. announced an agreement to license Blizzard Entertainment's StarCraft II, Warcraft III: Reign of Chaos, Warcraft III: The Frozen Throne, and Battle.net platform, which provides online multiplayer services for these games, to Shanghai EaseNet Network Technology Limited, an affiliated company of NetEase.com, Inc. Blizzard Entertainment and NetEase have also established a joint venture, which will provide support for the operation of the licensed games and Battle.net platform in China.
"NetEase has been a leader in the Chinese game market, and we look forward to working with them to deliver high-quality entertainment to Chinese gamers," said Mike Morhaime, CEO and cofounder of Blizzard Entertainment. "This partnership is a sign of our continued commitment to our players in China and to the local industry."
William Ding, CEO of NetEase, stated, "We're excited to be partnering with Blizzard Entertainment to bring StarCraft II and Battle.net to China. We hope to combine Blizzard Entertainment's expertise in developing world-class games with NetEase's strength in online-game operation in China to bring the best gaming experiences to our players."
The term of the license will be three years, with a mutual one-year renewal period, commencing from the commercial release of StarCraft II in the PRC. Under the agreements, Shanghai EaseNet will pay a revenue-based royalty over the license period, while NetEase will pay a milestone-based license fee and fund and guarantee certain additional payments and operating expenses in connection with the joint venture.