Microsoft (MSFT) has agreed to acquire a 1 percent in Chinese company Sichuan Changhong Electric, which makes Televisions, electronic appliances and computers, said a zdnet report. The almost 1 percent stake will cost Microsoft $12.3 million.
In their partnership, the two companies will work together to make and market products centered around the home-entertainment market, according to a stock filing to the Shanghai Stock Exchange.
Sigurd Leung, head of IT research at Beijing-based Analysys International said, "Changhong is a state-backed company, so for Microsoft to get 1 percent is still quite significant."
Sichaun Changhong Electric, had sales of $651 million for the first quarter of 2007 with profits increasing by 24 percent year-over-year, reaching $12.6 million. The 
deal is subject to the approval of the company's board.
While past projects with Chinese companies haven't been that successful for Microsoft, this time the maturity of the Chinese market is expected to give the venture a better chance at being a success.
» Microsoft Invests $12 million in China Television Company from www.gospelshout.com
Microsoft has agreed to acquire a 1 percent in Chinese company Sichuan Changhong Electric, which makes Televisions, electronic appliances and computers, said a zdnet report. The almost 1 percent stake will cost Microsoft $12.3 million. [Read More]
Tracked on: June 18, 2007 4:16 PM | Permalink to Trackback