BEIJING/MOSCOW (Reuters) – Tencent-backed Chinese video game publisher iDreamSky Technology Holdings, and a Russian tech firm Mail.ru the Group in the form of an alliance, in a move that will help Mail.ru click to expand the game’s footprint in China, two of the sources said.
FILE PHOTO: The logo of the Russian Internet company Mail.ru the Group can be seen on the façade of the head office in Moscow, Russia, on the 26th of June, 2019 at the latest. REUTERS/Maxim Shemetov
The partnership will see the two companies work together to publish games, and make investments in the Asian and European markets as well as the sources, who declined to name the agreement had not yet been made public, told Reuters.
The collaboration is set to be announced on the eve of the China Digital Entertainment Expo and Conference, known as ChinaJoy, which takes place in Shanghai between Aug 2 to 5, the sources said.
What form the cooperation will take, or how much the parties are willing to invest in it is not yet known.
The deal will give the Chinese gaming companies have been stepping up their hunt for new tracks in China, one of the world’s largest gaming market, after nearly a year of game, license, approval, mild to almost crippling to the industry. They are also a way of doing business in foreign countries, to compensate for stricter rules and regulations and the slowdown in economic growth in the country.
Mail.ru and iDreamSky declined to comment on Wednesday.
iDreamSky, which is being backed by China’s largest gaming and social media company Tencent, is known for a license for a fast hit overseas games, such as Angry Birds, Fruit Ninja and Temple Run in China.
If it is listed in Hong Kong last year, iDreamSky, said in its prospectus that its international expansion was a part of the plan.
Mail.ru that is launched in the world of gaming, I’ve noticed.GAMES Can, and will, with the co-operation to strengthen its position in China and expanding in Asia, one of the sources said.
The source added that the Russian internet business, will help iDreamSky publish games in Russia and in Europe, for example, by translating them into local languages.
MY.GAMES have been the biggest launch for a Mail.ru the Group, ever since the business started in 2009. The games division took in more than $118 million in revenue in the second financial quarter, which accounts for about one-third of the Mail.ru’s income.
About 70% of its games division’s revenue came from international markets, including the United States, Germany, and Japan, and Mail.ru it has been said that the goal is to increase that to more than 80%.
Report by Pei Li of Beijing, and Nadezhda Tsydenova, in Moscow; Additional reporting by Anna Rzhevkina in Moscow; Editing by Brenda Goh and Muralikumar Anantharaman