The9 Inks Strategic Partnership With 365LAWHELP.COM, Acquiring 19% Stake
Portfolio Pulse from Benzinga Newsdesk
The9 Limited (NASDAQ:NCTY), an established Internet company, has announced a strategic partnership with Zhejiang Fazhidao Information Technology Co., Ltd. (Fazhidao), acquiring a 19% stake through cash and issuance of restricted shares. Additionally, The9 has an option to increase its stake to 51% based on a valuation of 7 times Fazhidao's audited annual profit after tax, with a minimum valuation threshold.

February 21, 2024 | 7:49 am
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The9 Limited has entered into a strategic partnership with Fazhidao, acquiring a 19% stake with an option to increase to 51% based on future valuations.
The strategic partnership and acquisition signify a positive development for The9, potentially enhancing its market position and future profitability. The option to increase the stake to 51% provides a pathway to greater influence and control over Fazhidao, which could be beneficial depending on Fazhidao's performance and the synergy between the two companies. This news is likely to be viewed positively by investors, potentially leading to a short-term increase in The9's stock price.
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