US-based video game developer Certain Affinity has received a $10m investment from China-based game publisher Leyou Technologies Holdings in return for a 20% stake in the company.
The deal includes an agreement to develop a game funded by a loan of up to $15m from Leyou, with the money to be recouped through revenue generated from the game’s sales.
Leyou also has an option to purchase all remaining shares of Certain Affinity in 2021 for a valuation that will be determined by an agreed formula, but which cannot exceed $150m.
Founded in 2006, Certain Affinity has contributed to the development of a range of action-oriented video games that combined have sold more than 75 million copies, including Call of Duty: Black Ops, Halo 4 and Left 4 Dead.
The studio received a $5m investment from private equity firm Capstar Partners in August this year.
Max Hoberman, president of Certain Affinity said: “This agreement launches a partnership to create an ambitious and exciting new game together, while the additional investment allows us to continue developing our own original [intellectual property].
“Certain Affinity has a history of co-development on some of the biggest action franchises in the industry and we will continue this work in parallel.”