Microsoft form USD 79 million video game joint venture with Shanghai Media Group subsidiary
Microsoft Corp formed a USD 79 million video game venture with BesTV News Media Co. The joint venture would seek to take advantage of the proposed end of the 13-year ban on consoles sold by foreign firms. The proposed rules would apply to Shanghai's free trade zones which were slated to open on October 1, according to Bloomberg News.
Shanghai Media Group subsidiary BesTV News Media would hold a 51% stake in the firm. It would invest USD 40.29 million for the venture. Microsoft, meanwhile, would hold the remaining stake and put up USD 38.71 million for the new firm. The new venture would focus on video game design and development, sales and technical assistance services.
In an email, Microsoft Beijing Spokeswoman Joanna Li said, "We believe there is great market potential and partnership opportunities here. This is the first step of many to come for Microsoft and BesTV and we look forward to exploring new opportunities for bringing entertainment offerings to China."