SHANGHAI - A Shanghai media company said on Monday that it plans an entertainment development venture with Microsoft.

The company will have a registered capital of $79 million.

BesTV New Media Co Ltd, said in a bulletin posted on the Shanghai Stock Exchange, that it will hold a 51 percent share and Microsoft 49 percent in the joint venture, initially named E-Home Entertainment Development.

The joint venture will develop games and related services, said BesTV.

The new company's board chairman will be chosen by BesTV and the chief executive officer by Microsoft.

The total investment of both sides will reach $237 million.

The joint venture is expected to be registered in the newly established pilot free trade zone in Shanghai.

BesTV, a subsidiary of Shanghai Media Group, boasts 18 million IPTV subscribers with its businesses in China, southeast Asia and eastern Europe.