Microsoft may seek 'Bing' site partner
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Microsoft may introduce a new partner to its Chinese joint venture to run its Bing search engine in China, according a report from Sina.com on Tuesday.
The deal, if confirmed, would help the US software giant to grab some of the market share lost by Google, industry analysts said.
ChinaVision Media Group, a Hong Kong-listed media company, may acquire 50 percent of stake in MSN China from domestic investment firm Shanghai Alliance Investment, which established the joint venture with Microsoft in 2005.
ChinaVision announced on Sunday to the Hong Kong Stock Exchange that it plans to buy a 50 percent stake in a Chinese Internet firm for $100 million, without specifying the name of the company it intended to buy.
But Sina.com on Tuesday cited sources familiar with the matter as saying that the Internet company refers to MSN China, which currently runs Microsoft's online business including a portal website, hotmail and the Bing search engine in China.
Microsoft China refused to comment on the report. A spokesperson for ChinaVision was also not available.
NetEase.com Inc was reported in April to be in talks to acquire a stake in MSN China, but the negotiations later broke down.
Li Zhi, an analyst from research firm Analysys International, said MSN China's deal with ChinaVision may have a positive influence on its search business in China, given the latter's close ties with the government.
ChinaVision is a media group that has been cooperating with People's Daily in various fields, including running a joint venture focused on mobile television with People.com.cn, a website affiliated with People's Daily.
The company is also running the advertising business for the Beijing Times, a newspaper under the People's Daily.
"For any foreign search engine to be run well in China, they needs to have good communications with the regulators," said Li. "By introducing ChinaVision, I think Microsoft would be more skilled in dealing with the Chinese government."
Search engine Google Inc has seen its market share decline after it was involved in a spat with the Chinese government since January.
Currently Bing is still a negligible player in China's search industry, where Baidu Inc controls 70 percent of the market and Google 24.2 percent, according to Analysys International.
ChinaVision is listed both in Hong Kong and Singapore, according to the company. Its chairman, Dong Ping, was also the producer of Crouching Tiger Hidden Dragon, the Oscar-winning film.
