Yahoo Japan and Gree are investing 200 million yen (US$3.7 million) to set up a mobile social game joint venture (JV).
In a statement Monday, Gree said the two companies agreed to set up the tentatively-named GxYz which will focus on developing and operating social games for smartphones.
The Japanese social networking company said it had been in a business partnership with Yahoo Japan since November 2012. Yahoo Japan included links to social games on Gree via the mobile version of its site.
Through the JV, the two companies hope to to strengthen their partnership in the smartphone social games business and develop social games that will open up new possibilities in the game development business, said Gree.
Last year, the Japanese company boosted its mobile game development by buying U.S. mobile game developer, Funzio, in May and Japanese games developer, Pokelabo, in October.