NTES - 'Warcraft' Return To NetEase Signals Extension Of China's Gaming Relaxation
2024-04-12 13:45:00 ET
Summary
- This week’s renewal of NetEase’s agreement to operate games from Blizzard in China will have relatively little financial impact on either company.
- The deal signals China’s continued relaxation of regulatory policy and encouragement of global exchanges for the gaming sector.
- In terms of valuations, NetEase remains the clear number-two in China with a price-to-earnings (P/E) ratio of 16 compared to Tencent’s 24.
The return of “World of Warcraft” to China looked like big news when local gaming giant NetEase Inc. ([[NTES]]; 9999.HK) announced a new agreement this week to relaunch the popular title from Blizzard Entertainment after a more than one-year absence. But market reaction tells a different story that is far more nuanced....
'Warcraft' Return To NetEase Signals Extension Of China's Gaming Relaxation