Microsoft Seeks Chinese Partner for Search
Netease Tech, 9/01/10
Microsoft recently told overseas media that it is seeking a Chinese partner to help it become a major competitor in China's search market.
China region CEO Simon Leung said the goal is to become the number one search engine in terms of search query volume. Leung did not specify any potential joint venture partners.
Microsoft's Bing search engine is currently operated in China by Shanghai MSN Network Communications Technology, a joint venture with global investment firm Shanghai Alliance Investment. Leung would not divulge whether or not that JV will be involved or if Microsoft would select a new partner.
Leung added that Microsoft plans to invest USD 100 mln in Chinese partner companies, following USD 40 mln invested since 2006, and may invest additional funds going forward. Leung said Microsoft will mainly invest in software and cloud computing firms, and possibly the gaming sector as well, but did not disclose any timetable details.
Microsoft also seeks government approval to sell its Xbox gaming console in China, Leung said, pointing out that gaming consoles are essentially banned in the country.
Leung estimated shipments of PCs in China will rise 16% to 17% this fiscal year, which began July 1, after estimating in earlier statements that growth would be between 24% and 26%. Leung said that China's huge PC market could potentially become Microsoft's second largest market by revenue, but declined to reveal any dates for reaching that target.
Keywords: foreign investment game console sales volume Simon Leung Internet revenue software Bing Shanghai MSN Network Communications Technology Alliance Investment cloud computing JV MSN Microsoft online search
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