Chinese online game operator The 9 is to invest in two game companies to expand its development capabilities, according to Reuters.

The company is said to be investing an undisclosed sum in California-based developer Red 5 Studios and $100 million in Hangzhou-based Fire Rain.

Red 5, which was established by ex-Blizzard staffers including chief creative officer Mark Kern, formerly team lead on World Of Warcraft, and vice president of creative design Bill Petras, previously art director on WOW, recently laid off a number of staff but said that work on an unannounced MMO project was ongoing.

The move comes after The 9 lost its licence to operate WOW in China to NetEase last April.

Electronic Arts owns a 16 per cent stake in The9.