Microsoft formed a joint venture with Shanghai Alliance Investment in 2005 to introduce MSN, an instant messaging platform and internet portal, to the mainland. But MSN has struggled to gain traction with Chinese users and compete effectively with homegrown titan Tencent Holdings? QQ platform.

Sohu IT news reported late yesterday, quoting investment community sources, that Shanghai Alliance had been looking to exit the joint venture since 2007 and that Microsoft was shopping around for new joint venture partners.

Microsoft and NetEase were close to completing a joint venture deal, sources told Sohu.

Source : Konaxis