Microsoft will invest in Chinese electronics maker Sichuan Changhong Electric as part of a project to link televisions and consumer entertainment devices with the Internet.
Microsoft China agreed to buy 15 million newly issued Changhong shares at a price of 6.27 renminbi per share, according to a Changhong filing (in Chinese) with the Shanghai Stock Exchange. Microsoft's planned stake in the company is worth 94.1 million renminbi (US$12.3 million).
Changhong's announcement follows an agreement between the two companies, signed Friday, to cooperate on a project called Media Galaxy. The goal is to develop, manufacture and sell televisions, computers and digital entertainment products that connect to the Internet, Changhong said. It did not offer further details.
Terms of the investment deal require Microsoft to hold on to its Changhong shares for at least three years.