The9 announced that its subsidiary, Red5 Studios, and two shareholders have entered into share purchase agreements for the issue and sale of Series B Preferred Stock and common stocks of Red 5 to Shanghai Oriental Pearl Culture Development, respectively, for an aggregate of approximately $23M consideration, subject to adjustment as set forth in the share purchase agreements. Upon the closing of the transaction, Oriental Pearl will be a 20.01% minority shareholder of Red 5 and Red 5 will remain a subsidiary of The9. Oriental Pearl is a wholly-owned subsidiary of Shanghai Oriental Pearl. The closing of the transaction is subject to certain conditions specified in the share purchase agreements. There can be no assurance that the closing will be completed.