Chinese media company BesTV, which has 18 million IPTV subscribers across China, Southeast Asia and Eastern Europe, is going into business with Microsoft (Nasdaq: MSFT) to develop games and related services in China, according to multiple reports.
The venture, called E-Home Entertainment Development, will start with an initial investment of $237 million from the two companies, of which BesTV will have a 51 percent share.
BesTV, a subsidiary of Shanghai Media Group, announced the deal on the Shanghai Stock Exchange.
The deal is likely a way for Microsoft to cozy up to a Chinese market that has, in the past, looked askance at gaming. Microsoft does have some influence in the region, having launched a Chinese language Xbox Live site in August 2012.
This time the U.S. company will be more heavily vested--financially and personnel-wise--in the country. Microsoft, reports said, will select E-Home's CEO while BesTV gets to choose the board chairman. The company will "likely" be registered in Shanghai's new free trade zone, a Joystiq article suggested.
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