Microsoft China President Quits, Joins Shanda Networking

by Paul Denlinger

Posted Feb 6, 2004

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Microsoft China's president Tang Jun will depart the company, and will join the country's largest online gaming company, Shanda Networking, as its president.

Shanghai-based Shanda Networking, is China's largest online gaming website, and is headed by 30-year old Timothy Chen Tianqiao, who is widely praised as the leading evangelist of online gaming in China. The company plans to list on Nasdaq shortly. Chen will give up his current position in Shanda Networking to Tang Jun.

Tang Jun became president of Microsoft China in March 2002, and was instrumental in building its global support center. Microsoft has a global support center based in Shanghai, which has grown from a small office employing several people in 1995, to an operation of nearly 1,000 persons now. The center focuses mainly on providing support to Microsoft applications end-users all over the world. In addition, Microsoft has a growing Asia research center in Beijing.

Microsoft China announced that although Tang Jun was leaving the company, it would keep the title of "honorary president" for him in recognition of his contributions to the company over the years.

Timothy Chen Tianqiao has announced that his intention is to bring in a professional management team to lead Shanda after it goes public. While continuing to play a role in the company, he will not be involved in the day-to-day management of the company.

The company started as the China distributor for a Korean game developer, distributing the game "Legend" in China. The relationship with the Korean distributor has not been smooth, and there have been extensive accusations and litigation threats on both sides. Currently, Shanda has been developing its own products, which it will host on its own network. Since the games are hosted on Shanda's network, and subscribers pay to play online, the company has circumvented the problem of piracy which is so big in China.

The technological development team at Shanda was headed up by Chen's brother Chen Danian. Now, it has more than 250 developers working on next-generation products. Chen has said that the company plans to buy a leading game engine maker to form the core of Shanda USA, a new US subsidiary. According to him, the only company to have the same technology is IBM.

According to Chen, Disney brought animation to the world, and online gaming will be just as instrumental in bringing China's companies to the world. Shanda estimates that it will grow 50 - 100 percent this year.

With a net worth of US$490 million, Chen is now the sixth wealthiest man in China, according to Forbes magazine.

After taking a rest, he plans to enter Chinese politics.

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