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AOL in China via Venture With Legend


America Online (AOL) announced yesterday that it was forming a joint venture with Legend Holdings Ltd, China's largest personal computer maker, in the first move by one of the giant US corporations to enter China's information industry.

According to a statement released by Legend, the two companies have agreed to pump approximately US$100 million each into the joint venture to develop interactive services targeted at Chinese consumers.

Legend will hold a 51 percent stake in the new company, reflecting China's current laws and regulations that still place restrictions on foreign ownership in the telecommunications and information industries.

"The joint venture will provide technical and management expertise to existing Legend services," Michael Lynton, president of AOL, said. "It will pursue future possibilities for online services."

AOL's goal is to make the interactive services a central part of daily life for Chinese consumers, he added.

"Legend has been in search of a partner as we lack advanced technology and experience in interactive services," said Yang Yuanqing, Legend's president and chief executive officer. "AOL's membership model matches Legend's direction with its leading Internet technology, online functions and security technology."

(China Daily 06/12/2001)

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