China's top PC maker Lenovo will set up a US$15 million joint venture with Sun Media Investment Holdings to tap the broadband multi-media market in the Chinese mainland.
Lenovo will not provide any cash investment to the joint venture but it will grant the right to use its existing Internet portal brand FM365.
Sun Media, led by China's famous TV host Yang Lan, will inject its mainland-based multi-media production subsidiary to the venture and hold a majority stake.
The joint venture will focus on developing multi-media businesses including creation of content and copyrights, as well as of a distribution network.
The alliance of a leading technology provider and a content provider in the country comes at a time when China plans to upgrade its fixed-line phone and cable-television networks nationwide.
China is expected to have 25 million broadband Internet users by the end of the year.
(CRI August 9, 2004)
