Blizzard Entertainment said on Thursday it will no longer offer games such as "World of Warcraft" and "Hearthstone" in China from next year onwards once its deal with NetEase ends, prompting shares in the Chinese internet giant to tumble.

California-based Blizzard said it was unable to reach a deal with NetEase that was "consistent with Blizzard's operating principles and commitments to players and employees."

NetEase said in a Chinese statement that it was unable to agree on key terms of cooperation and added, in a second statement in English, that the expiration of the licences would have no "material impact" on its financial results.

Shares of Hangzhou-based NetEase slumped as much as 14.5 percent in Hong Kong on Thursday, ending 9.05 percent lower, following the announcement.

"We will continue our promise to serve our players well until the last minute. We will make sure our players' data and assets are well protected in all of our games," William Ding, CEO of NetEase, said in a statement.

NetEase rose to become China's second-biggest gaming company behind Tencent Holdings in large due to its clinching of deals to be Blizzard's publishing partner in China in 2008 when Blizzard ended its deal with The9 Ltd.

Their agreements are set to expire on January 23, 2023. Blizzard said new sales would be suspended in the coming days and players would receive further details.

The games to be suspended include "World of Warcraft," "Hearthstone," "Warcraft III: Reforged," "Overwatch," the "StarCraft" series, "Diablo III," and "Heroes of the Storm."

"We are looking for alternatives to bring our games back to players in the future," Blizzard President Mike Ybarra said in the statement.

Late Thursday, NetEase reported a total revenue of 24.4 billion ($3.4 billion) in the three months ended September 30, an increase of 10.1 percent compared with the same period last year.

Net income attributable to the company's shareholders in the third quarter totaled 6.7 billion yuan ($941.8 million), a year-on-year increase of 110.6 percent from 3.2 billion yuan in 2021.

(Source: Reuters with edits)