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September 4, 2007

Microsoft’s MSN China partner wants out

Posted by David Hunter at 11:37 AM ET.

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.

Filed under General Business, Governmental Relations, Investor Relations, MSN, Microsoft

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One Response to “Microsoft’s MSN China partner wants out”

  1. Non-Microsoft half of MSN China sold? -- Microsoft News Tracker Says:

    [...] MSN China is a 50/50 joint venture of Microsoft and Shanghai Alliance Investment Ltd. (SAIL) and last month it was reported that SAIL wanted out. Now the buzz is that Chinese online game company The9 Limited is buying that 50%. [...]

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