Hutchison’s Invests in

Hutchison Whampoa Ltd’s self-styled mega-portal has invested US$4.2 million to acquire an initial 15 percent share in music e-commerce play

In addition to the initial investment, the two companies have agreed options which will allow to increase its stake to up to 30 percent prior to and 50 percent at the time of an initial public offering of’s shares.

“Alignment with’s powerful brand, broad audience and world class Chinese language internet portal interface will significantly enhance our market share as an ‘e-tailer’ of Cantonese and Mandarin language music and video products,” said John R. Henderson, chairman and CEO of

“’s sponsorship will also allow us to significantly accelerate our development plans for other Asian language markets, in particular India, which is the next strategic market we are looking at,” added Henderson.

“ is an excellent partner to because of the depth and experience of its management team and the quality of the internet offering which they have created for Cantonese and Mandarin language music and video sales,” said Carl Chang, CEO of Ltd.

“Their supply and distribution networks are well advanced and we believe their alignment with will assume a leading market position in this important and growing “B to C” e-commerce sector,” commented Chang.

The move is seen by many as a strategic investment, allowing to have access to’s services for its portal. However, as one analyst pointed out, in the case of, it wasn’t really clear what type of Internet business model that Hutchison was developing.

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