Chinese electronics maker Changhong Electric Co. (stock code: 600839) announced on Monday morning that Microsoft Corp. is paying US$12.3 million for an approximately one percent stake in the company. Changhong will issue 15 million new shares at 6.27 Yuan each to Microsoft. The price is a 37 percent discount to Changong's stock price of 9.93 Yuan on June 13, the last day the shares traded before being suspended. Micosoft has agreed to not sell its stake in Changhong for at least three years. Changhong's announcement said that the two companies will cooperate on interactive digital home entertainment products. Microsoft will also work with Changhong on the "Media Galaxy" project. Media Galaxy is a Changhong project to develop a device that connects the panel TVs and PCs.