Microsoft Will Buy Stake in Changhong, Chinese TV Set Maker – Denis Mcmahon and Jane Lanheel Lee

From Wall Street Journal:

Sichuan Changhong Electric Co. said Monday that Microsoft Corp. plans to take a small strategic stake in the firm, sending the Chinese television maker’s shares sharply higher.

The two companies also signed a memorandum of understanding for a project called Media Galaxy, through which they will cooperate on research, development and production of digital entertainment products linking televisions and personal computers with the Internet, Changhong Electric said in a statement.

It said Microsoft signed a letter of intent to buy 15 million new Changhong Electric shares at 6.27 yuan each, or 94 million yuan ($12.3 million) in total. The shares would be equivalent to less than 1% of Changhong Electric’s enlarged share capital. [Full Text - subscribers only]