Red 5 Nets $23 Million to Keep Firefall on Track for 2014
Firefall developer Red 5 received $23 million in a recent stock sale, allowing the developer to keep its MMO shooter Firefall on track for a 2014 release.
Red 5 and two shareholders agreed to sell a 20.01-percent minority stake in the company to Shanghai Oriental Pearl Culture Development Co. for about $23 million, according to a press release from Red 5 parent company The9. The press release says the Series B funding allows Red 5 to maintain is plans to release Firefall, which has officially been in development since 2010, later this year. Red 5 was founded in 2005.
According to a report from Polygon, the share deal with Oriental Pearl was initiated in October and finalized today.
Red 5′s board of directors recently ousted co-founder and former CEO Mark Kern, and posts appearing in places such as Reddit and Glass Door allege the company wasted development time and money under his leadership, instead investing in things such as Studio 5, a video production arm, and a Firefall-branded bus created by West Coast Customs.