China-based game developer The9 has taken its first non-Asian strategic stake by buying a minority stake in Aurora Feint, a US-based social gaming platform for Apple’s iPhone.
The9, which is listed on the Nasdaq stock exchange, was reported by news provider VentureWire as having paid $5m for the minority stake.
Aurora has 18 million players on its OpenFeint game and a development platform to allow other games to be played on its hardware and previously sold 20% of the company to Japan-based social gaming company DeNA, which last month set up a corporate venturing fund.
The9 said it made its minority investments from its balance sheet having backed Korea-based G10 in April 2008 and domestic game studios Youqu, Fire Rain, Star and Fatiaocheng.
Jun Zhu, The9’s executive chairman, said: "We are confident of the prospect for this [Apple’s] mobile platform and believe it will play an important role in the future development of [the] global mobile internet. The investment in Aurora Feint is an important step of The9’s establishment of a mobile gaming platform and is also an integral part of our global strategy."
In March, The9 made its first acquisition through buying majority control of US games maker Red 5 Studios but it has previously made strategic investments in Asian companies.
Phyllis Sai, investor relations manager at The9, by email said: "We are continuing to seek promising business partners worldwide to increase our share of the gaming market, especially to dig the depths of game playability and expand the breadth of game genres. All of our investments are based on strategic purpose rather than simple corporate venturing.
"Our investment in Aurora Feint indicates our first step into mobile internet and we will do more strategic alliance with capable partners in this field providing a totally fresh experience to mobile internet users."