 |
AOL to Set up US$200 Million Joint Venture in China
America Online Inc will unveil a US$200 million joint venture in China with top Chinese computer maker Legend Holdings next week, the Asian Wall Street Journal reported Monday.
The deal between AOL, the world's largest Internet service provider, and Legend was confirmed by a Legend executive and marks AOL's first major foray into the mainland China market, the Journal said.
The agreement involves each side contributing 100 million dollars to set up a new company that would develop interactive services for Chinese consumers, the report said.
Citing AOL documents dated late last month, the Journal said the two companies will have equal say in management decisions as well as equal board representation.
But Legend will own a 52 percent stake in the new venture, reflecting China's restrictions against foreign companies holding a majority ownership in the telecommunications and Internet sectors.
Legend is a majority state-owned company which is listed in Hong Kong and has 30 percent of the personal computer market in China.
The agreement marks the first step by the Virginia-based Internet unit of AOL Time Warner Inc toward offering its popular dial-up service and Web portal to China's 22 million online users, the Journal said.
In This Section
|