Tuesday, June 19, 2007

Microsoft buys part of a Chinese television manufacturer


TWICE: Microsoft Seeks Stake In TV Firm
Shanghai, China — Microsoft has agreed to pay $12.3 million for a stake in Chinese television manufacturer Sichuan Changhong Electric and will form a cooperative alliance with the company, according to a Reuters’ report.
The purchase is the equivalent of about a 1 percent stake in the company, and gives Microsoft the ability to work cooperatively with Changhong Electric “to develop, make and market TVs, computers and other digital home-entertainment products,” according to the report.
Sichuan Changhong Electric, which is a government-backed company, said it would soon present the deal to its board for approval.


I wonder if there is there anybody at Microsoft who can clearly articulate what their core business is? Younger tech watchers may forget that before Google became synonymous with buying up every small company in sight, back in the 80's and early 90's it was Microsoft that was famous for rabid acquisitiveness.

I recognize the need for a software company to partner with hardware manufacturers, but do they need equity in the hardware side? Look at the agreement that has Toshiba manufacturing the Zune. Okay, that's a bad example.

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