Microsoft launches Chinese media venture

ENT News | at | by Mike

Microsoft and a major Chinese TV set maker announced Monday they will jointly develop entertainment products linking television and the Internet, joining a race to profit from the Web's growing status as a channel to distribute movies and other programs.

As a part of the deal, Microsoft will become a strategic investor in Changhong, buying just under 1 percent of its shares for about $12 million, Changhong said in a prepared statement.

Microsoft and Sichuan Changhong Electric Co. will explore "a wide range of scenarios for digital entertainment needs," said Roger Chen, a Microsoft spokesman in Beijing.