Microsoft invests in Changhong media company in China

Software giant Microsoft has announced that they are going to jointly develop entertainment products linking television and the Internet.

They are collaborating with Changhong by becoming a strategic investor in the company. Microsoft is acquiring just under 1 percent of its shares for about $12 million.

The two companies said that they would together explore “a wide range of scenarios for digital entertainment needs”.

Roger Chen, a Microsoft spokesman in Beijing added: “The project focuses on in-home network digital entertainment — how to connect PCs, TVs and the Internet to provide this digital entertainment experience.”

China is a big market for Microsoft. It is the second largest internet market in the world after the United States and is already the world’s largest television market.

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