Shanghai-based BestTV teams with Microsoft to stream games

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.

For more:
- VG24/7 carried this story
- and Joystiq carried this story

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