Shanghai, China (AHN) - The co-founder of MSN China is selling its 50 percent stake in the company running the portal because it is not satisfied with their revenue model, Interfax China reported on Thursday.

Citing a report from the 21st Century Business Herald, Interfax China said the Shanghai Alliance Investment Co. Ltd. (SAICL) has been looking for a buyer since the middle of this year so it can part ways with Shanghai MSN Network Communications Technology Co. (MSN China). SAICL reasoned that it is worried of MSN China's unclear revenue model.

The targeted buyers are venture capitals and Chinese Internet companies, according to the report. An analyst ruled out Microsoft Corp. as a buyer because the Chinese government does not issue Internet content provider license to local companies or joint ventures controlled by foreign investors.

MSN China declined to comment on the report and said its revenue model is clear. MSN China spokesman, Feng Guangsheng, said web page advertising is the portal's major revenue source. MSN China also generates revenue by selling mobile MSN service and channels.

The Chinese MSN portal was launched in May 2005. Among its services are information and entertainment, an online community, investment and financing, consumer information, shopping, real estate, picture and ring tone downloads and English lessons. The site also offers MSN Messenger, MSN Hotmail, MSN Mobile and MSN Spaces.