BEIJING (dpa-AFX) - Internet company The9 Limited (NCTY), Wednesday announced that its wholly-owned subsidiary Shanghai The9 Information Technology Co., Ltd. has signed a joint venture agreement with ShaoXing TongZe Network Technology Co., Ltd., AI algorithms and data marketing service provider in China.
The9 will hold a 51% stake and TongZe will hold a 49% stake in the joint venture. The joint venture will become one of The9's consolidated subsidiaries to operate AI algorithms and big data marketing business and is expected to provide marketing solutions to The9's upcoming new MIR game: MIR M.
Under the agreement, TongZe committed that it will utilize its AI algorithms and big data to reach more than 100 million relevant pan-MIR tag users and more than 30 million paid MIR users.
It also committed to The9 that the joint venture will have an annual profit of more than RMB100 million (about $14 million) in 2025.
The9 will grant TongZe The9 restricted shares. The amount will be RMB 42.5 million/US dollar to RMB exchange rate on the date of issuance / NCTY share price on the date of issuance.
'We see that AI technology and applications have begun to bring new ideas to the traditional marketing of online games in China, which is too costly and inefficient. Our cooperation with TongZe will utilize its mature AI algorithms and big data to reach potential tagged MIR game users directly for our new MIR game,' said George Lai, CFO of The9.
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