Monday, September 13, 2010

50% stake in MSN China, the main message would be easy to pass and then mad



Changed hands a few years ago, came news of the MSN China, shareholders, or a new partner once again spread the rumor.

Recently, the industry came news of the Shanghai United Investment Company Limited will own 50% stake in MSN China, sell, has reportedly reached a preliminary intention NetEase, NetEase will next co-operation with Microsoft MSN China. Informed sources have told reporters that Microsoft headquarters has sent people to China, or to discuss the matter.

However, MSN China to be a denial on the matter. "For we do not comment on rumors, MSN China, there is no change in architecture." April 21, MSN China, public relations director Feng Guangshun told reporters by telephone. NetEase PR comment on the matter said. Could not be reached on the rumor of the equity joint venture company Shanghai seller to verify.

In fact, in the second half of 2007, it had already spread by Shanghai MSN China joint venture to sell news. Informed sources said that more than two years, "almost all the well-known Internet companies have talked about, but has not reached the ultimate intention."

US-China by Shanghai MSN Network Communications Technology Co., Ltd. Blethyn operations, in May 11, 2005 established joint venture between Microsoft and Shanghai each holding 50%. Through this joint venture, Microsoft was able to MSN portal, search and other services fully into China.

It is learned that the original stake in MSN China's Shanghai joint investment purely financial investment, which the actual operations are responsible for by Microsoft. However, the late business model is not always clear, the Shanghai joint investment since the latter half of 2007 to seek out.

April 21, informed sources have told reporters, MSN China has repeatedly heard news shareholders to change the leader is Microsoft, whose Internet operations looking for a more experienced partner.

Microsoft's Internet Business Unit, former Chinese executives, PPlive CEO Tao Chuang told reporters that the Chinese Internet companies, like China and MSN business cooperation can have many benefits, such as instant messaging products, search technology, and overseas business development and other aspects can be supported. But also from strategic partners Microsoft for more business cooperation and support.

It is based on this factor, informed sources, including Baidu, Tencent, Netease and Shanda, Ninetowns and so have had contact with Microsoft to discuss co-operation matters MSN China, but have not reached a final agreement.

"The main reason is that the valuation and control, or both." Another source said Microsoft wants more than just a simple option on the cooperation, but the corporate level have more depth of the joint.

"Large Internet companies have overlapping business basic, such as IM (instant messaging), search and so on, we all do, and cooperation on issues related to who led, to have a choice." The source said.

It is reported that, in many negotiating in China, Netease and Microsoft's MSN business in the complementarity of the strongest, first of all, portals, MSN China's major profit by outsourcing content channels, while NetEase content was just right for its use; Secondly, Netease's online game business and Microsoft's XBOX console business but can also complement each other.

According to iResearch recently published "China's online advertising industry, 2009-2010 Development Report", 2009, MSN's revenue from online advertising in China is 3.1 billion, came in after four major portal. Also, according to a second tier cities across the country iResearch monitoring statistics, in the Chinese market in 2009, QQ user penetration around 88%, MSN's penetration rate of 15% to 37%.







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