MSN China Seals MBO Deal
Microsoft announced that Microsoft Online, which was formerly known as MSN China, has reached a management buyout agreement to become a subsidiary of Xichuang Technology and Microsoft Online's general manager Liu Zhenyu is now chief executive officer of Xichuang Technology.
Microsoft confirmed via its blog that Xichuang Technology and Microsoft are implementing close cooperation to realize operating model optimization for the Internet search advertising business of the existing company to ensure the continuity of core businesses and partnerships. All the details were effective from August 10, 2016.
Microsoft added that China will still be a strategic market for Microsoft and the company will still make long-term investment in this marketplace in the future. Microsoft China has the company's largest research and development center outside America. It will be committed to creating more personalized computing, building smart cloud platforms, and re-establishing core strategies, including productivity and business process.
Xichuang Technology was registered in December 2015 and the company was initiated by Liu.
On October 15, 2014, MSN China announced plans to rename to Microsoft Online and the company would promote Microsoft's online products and businesses in the Chinese market while providing advertising solutions. Microsoft Online's products and services cover Cn.msn.com, Bing, Windows AiA, Windows Phone AiA, Xbox One, and Skype.