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Microsoft searches for partner to boost its China Bing share

by Sarah Griffiths on 2 September 2010, 16:06

Tags: Microsoft (NASDAQ:MSFT)

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Bing ambitions?

Microsoft is reportedly searching for a Chinese partner to help it dominate the country's internet search market as part of its expansion plans.

The computer giant aims to grow its presence in China and its chief exec for Greater China, Simon Leung, told The Wall Street Journal it plans on ploughing some $100m into Chinese companies.

Microsoft has already reportedly invested around $40m in domestic firms since 2006 but now plans on investing in companies in the gaming, cloud computing and software space.

Leung did not reportedly reveal any companies in the frame for buddying up with Microsoft or divulge whether the firm is interested in partnering with a domestic search company, although commentators have tipped NetEase and Tencent as possible candidates.

Microsoft has so far been rather coy about its search engine ambitions in China and has reportedly not gained much market share despite Google's problems earlier on this year. In fact, China's favourite search engine, Baidu, has benefitted the most from Google's Hong Kong move, dominating around 70 percent of China's search market.

It is not thought to have much to gain by partnering with Microsoft, which currently controls around 4 percent of China's search market, while Google controls just under a quarter.

Intriguingly, Leung also told the newspaper that Microsoft has asked the Chinese government whether it can sell its Xbox 360 console in China, where consoles are unavailable.

This potential development could rock Lenovo's console ambitions. The company is currently in the process of developing its own console called the eBox which is tipped to include controller-free gaming like the Xbox's new Kinect peripheral.

The Chinese government banned the import of all consoles in 2000 as it feared they hinder the development of young people, leaving a huge gap in the market, which both Microsoft and Lenovo seems keen to fill.



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