NetEase Plummets After Ending China Deal for Blizzard Games
- 14-year partnership fired up hits like Warcraft, Overwatch
- Two companies failed to agree on terms for an extension
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NetEase Inc. and Blizzard Entertainment Inc. plan to end their 14-year partnership after January, depriving the Chinese firm of a slice of revenue and suspending service for some of the country’s most popular games. NetEase shares plunged.
The Hangzhou-based publishing giant and Activision Blizzard Inc. subsidiary failed to agree on an extension to their long-running collaboration, which had encompassed famed franchises like StarCraft, Diablo, Overwatch and World of Warcraft. Blizzard will suspend most online game services in mainland China from Jan. 23, the US company said on Wednesday. Game sales will also halt in the coming days.