Posted: Mon., Jun. 18, 2007, 2:41pm PT

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Microsoft links with Changhong

Duo to develop entertainment products

Microsoft announced a partnership deal Monday with Changhong, one of China's biggest TV set makers, to jointly develop entertainment products linking TV and the Internet.

Microsoft will become a strategic investor in Changhong, buying just under 1% of its shares for about $12 million, Changhong said in a statement.

Deal is the latest sign of the Web's growing importance for distributing movies and programming in the rapidly expanding Chinese market.

China has the world's second-largest population of Internet users after the U.S., with 137 million people online. Its population of TV viewers is already the world's biggest at 400 million.

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