HANGZHOU, China, Nov. 16, 2022 /PRNewswire/ -- NetEase, Inc.
(NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), one of
China's leading internet and
online game services providers, today announced that it
anticipates that its licenses covering the publication of several
titles of Blizzard Entertainment, Inc. in China will expire in accordance with their
terms on January 23, 2023 and will
not be renewed. The affected games are World of
Warcraft®, the StarCraft®
series, Hearthstone®, Heroes of the
Storm®, Overwatch® and Diablo
III®.
"We have put in a great deal of effort and tried with our utmost
sincerity to negotiate with Activision Blizzard so that we could
continue our collaboration and serve the many dedicated players in
China. However, there were
material differences on key terms and we could not reach an
agreement. We hold high regard in our product and operational
standards and abide by our commitments to Chinese players.
"We are honored to have had the privilege of serving our gamers
over the past 14 years and have shared many precious moments with
them during that time. We will continue our promise to serve our
players well until the last minute. We will make sure our players'
data and assets are well protected in all of our games," said
William Ding, CEO of NetEase.
The net revenues and net income contribution from these licensed
Blizzard games represented low single digits as a percentage of
NetEase's total net revenues and net income in 2021 and in the
first nine months of 2022. The expiration of such licenses will
have no material impact on NetEase's financial results. The
co-development and publishing of Diablo®
Immortal™ is covered by a separate long-term agreement and
will continue.
About NetEase, Inc.
As a leading internet technology company based in China, NetEase, Inc. (NASDAQ: NTES and
HKEX:9999, "NetEase") provides premium online services centered
around content creation. With extensive offerings across its
expanding gaming ecosystem, the Company develops and operates some
of China's most popular and
longest running mobile and PC games. Powered by industry-leading
in-house R&D capabilities in China and globally, NetEase creates superior
gaming experiences, inspires players, and passionately delivers
value for its thriving community worldwide. By infusing play with
culture and education with technology, NetEase transforms gaming
into a meaningful vehicle to build a more entertaining and
enlightened world.
Beyond games, NetEase service offerings include its
majority-controlled subsidiaries Youdao (NYSE: DAO),
China's leading technology-focused
intelligent learning company, and Cloud Music (HKEX: 9899),
China's leading online music
content community, as well as Yanxuan, NetEase's private
label consumer lifestyle brand.
NetEase's ESG initiatives are among the best in the global media
and entertainment industry, earning it a distinction as one of the
S&P Global Industry Movers and an "A" rating from MSCI. For
more information, please visit: http://ir.netease.com/.
Forward Looking Statements
This announcement contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
In addition, statements that are not historical facts, including
statements about NetEase's strategies and business plans, its
expectations regarding the growth of its business and its revenue
and the quotations from management in this announcement are or
contain forward-looking statements. NetEase may also make
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC"), in announcements
made on the website of The Stock Exchange of Hong Kong Limited (the
"Hong Kong Stock Exchange"), in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. The accuracy of these statements may be
impacted by a number of business risks and uncertainties that could
cause actual results to differ materially from those projected or
anticipated, including risks related to: the risk that the online
game market will not continue to grow or that NetEase will not be
able to maintain its position in that market in China or globally; the risk that COVID-19 or
other health risks in China or
globally could adversely affect the Company's operations or
financial results; risks associated with NetEase's business and
operating strategies and its ability to implement such strategies;
NetEase's ability to develop and manage its operations and
business; competition for, among other things, capital, technology
and skilled personnel; potential changes in government regulation
that could adversely affect the industry and geographical markets
in which NetEase operates, including, among others, initiatives to
enhance supervision of companies listed on an overseas stock
exchange and tighten scrutiny over data privacy and data security,
as well as the risk that NetEase's ADSs could be barred from
trading in the United States as a
result of the Holding Foreign Companies Accountable Act and the
rules promulgated thereunder; the risk that NetEase may not be able
to continuously develop new and creative online services or that
NetEase will not be able to set, or follow in a timely manner,
trends in the market; competition in NetEase's existing and
potential markets; and the risk that fluctuations in the value of
the Renminbi with respect to other currencies could adversely
affect NetEase's business and financial results. Further
information regarding these and other risks is included in
NetEase's filings with the SEC and announcements on the website of
the Hong Kong Stock Exchange. NetEase does not undertake any
obligation to update this forward-looking information, except as
required under the applicable law.
Contact for Media and Investors:
Margaret Shi
Email: ir@service.netease.com
Tel: (+86) 571-8985-3378
Twitter: https://twitter.com/NetEase_Global
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SOURCE NetEase, Inc.