Blizzard states on the matter:
We approached NetEase again last week to explore a six-month extension to our existing agreement, which is based on terms agreed by NetEase in 2019, to allow everyone to continue playing without interruption and for Blizzard to continue on its way in the China market. Unfortunately, NetEase has not accepted our proposal to extend the existing agreement, following last week’s negotiations.
Apparently, NetEase has its own version:
For unknown reasons, Blizzard last week re-approached NetEase with an offer for the so-called six-month extension of video game services and other terms, and made it clear that it would not stop continuing negotiations with other potential partners during of the extension of the contract. And as far as we know, Blizzard’s negotiations with other companies during the same period were all based on a three-year contract proposal. Considering the non-reciprocity, unfairness and other conditions attached to the cooperation, the parties could not finally reach an agreement.
It is noted that the collaboration between the two companies began 14 years ago.