(Adds comment from Electronic Arts in paragraphs 9-11)
By John Tilak
BANGALORE, May 21 (Reuters) - The world's largest video game publisher Electronic Arts Inc. (ERTS.O) said it would take a 15 percent stake in Chinese online game operator The9 Ltd. (NCTY.O) for about $167 million as part of its international expansion.
The9 will get exclusive rights for publishing EA's "FIFA Online" soccer game in China, the two companies said.
An analyst said this is a way for Electronic Arts, which agreed in March to invest $105 million in South Korean online game company Neowiz Corp. (042420.KQ), to speed up its growth in Asia.
"You'll see them accelerate their business in China," Lazard Capital Markets analyst Colin Sebastian said by phone.
Sebastian said EA has found a reputable partner in The9, which distributes Blizzard Entertainment's popular "World of Warcraft" online game in China.
Blizzard Entertainment is a division of Vivendi Games, a unit of French media giant Vivendi (VIV.PA).
ASIA FOR FASTER GROWTH
The9 makes most of its revenue from "World of Warcraft", and Sebastian said distribution rights for the FIFA game gives The9 more diversity of content.
He said EA has been facing slower growth in its domestic North American market and also in Europe to an extent.
"Down the road, this is the first strong step into things that we hope will be better business, or bigger business, for us over time," said Owen Mahoney, EA's senior vice president of corporate development.
Foreign game publishers have been challenged in China due to the prevalence of illegal copying and preference for playing games in Internet cafes as opposed to on home computers or specialized gaming consoles.
"We're taking our core game and we're turning it into an online game. It's just the way the games are made and sold in that market," Mahoney said.
BMO Capital Markets analyst Edward Williams said in a note to clients that the investment is a positive for EA as it looks to expand its reach beyond the traditional gaming markets of North America and Europe.  
Article Source: www.reuters.com.