Microsoft, Allyes, and Focus Media Establish JV to Sell Ads on MSN Messenger in Shanghai

Microsoft is poised to establish a joint venture with Chinese online advertising agent Allyes and specialized advertising company Focus Media to sell advertisements on its MSN Instant Messaging application in China. The new joint venture, which has yet to be named, will have an initial capital of up to USD 60 million, with Microsoft holding significant sway in its operations and financial involvement. The JV will capitalize on the popularity of MSN Messenger in China, where business professionals frequently use the application to communicate with colleagues and contacts.

Key Takeaways:

• Microsoft is establishing a joint venture with Allyes and Focus Media to sell advertisements on MSN Instant Messaging in China.
• The joint venture will have an initial capital of up to USD 60 million.
• Microsoft will hold significant sway in the operations and have financial involvement in the JV.
• The JV will target the growing market of MSN-based services in China.
• Microsoft's MSN Messenger has gained rapid popularity in China, with many business professionals using it to communicate.
• The MSN Messenger platform has been modified to include six new online channels, and a new version 7.0 is expected to be launched soon.
• The joint venture will confront Chinese firms already operating MSN-based SMS services.
• Microsoft's MSN Business Director, Luo Chuan, declined to comment on the joint venture.

Statistics:

• Up to USD 60 million is the initial capital for the joint venture.
• Six new online channels have been added to the MSN Messenger platform.
• The new MSN Messenger version 7.0 is expected to be launched soon.
• MSN Messenger has gained rapid popularity in China, with a significant user base among business professionals.

Sources:

• INTERFAX-CHINA - "Microsoft to set up JV with Allyes, Focus Media to sell ads on IM in China"
• An unconfirmed source - Estimated initial capital of USD 60 million for the joint venture.