MSN China is actually a joint venture between Microsoft and Shanghai Alliance Investment Ltd. (SAIL) a firm which if not exactly government owned, is “extremely well connected.” Now via Stephen Bink comes a report that SAIL wants out of the deal:
“Alliance Investment started to approach potential buyers last month,” the report said, citing a source close to Alliance Investment.
Both parties hold 50 percent of the venture.
The source told the newspaper that Shanghai Alliance Investment, which is reportedly run by Jiang Mianheng, a son of former President Jiang Zemin, wanted to end the partnership because the venture’s business model has “always been unclear.”
A complaint not unfamiliar to Microsoft shareholders either.