Microsoft investing $12 million in China for a 1% stake in China TV

Microsoft is making further inroad into China and this time it has acquired a one percent stake in China’s Sichuan Changhong Electric. The deal also let Microsoft form a cooperative alliance with the TV and electrical appliance maker to develop, make and market TVs, computers and other digital home-entertainment products.

The project will face challenges that have dogged several such collaborations in the past, but the market is now more mature and the deal gives Microsoft a foot in the door with a potentially key player, said Sigurd Leung, head of IT research at Beijing-based Analysys International.

“Changhong is a state-backed company, so for Microsoft to get 1 percent is still quite significant,” he said.

China offers a potentially huge consumer market and Bill Gate is definitely on the right track to capitalize on the opportunity to make expand further in one of the most powerful economy in the world. The richers are definitely getting richer.

Read [CNET News]