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AOL TW & China's Legend Holdings Ink Deal

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NEW YORK -- AOL Time Warner Inc. and Legend Holdings Ltd., a Chinese PC manufacturer and interactive-services provider, announced a joint venture to develop consumer interactive services for the Chinese market.

AOL (AOL) said Legend will have 51% equity in the joint venture, and AOL will have the remaining 49% stake.

The joint venture will be capitalized at $200 million, with each party contributing about $100 million over time.

AOL said the new venture will combine its technology and ability to create and market online services with Legend's experience in the Chinese consumer PC and interactive-services markets.

The joint venture will be engaged in activities that are allowed under Chinese regulations and government policies, AOL said. It will provide interactive-services consultation and technical support in the near term.

The joint venture gradually will expand its scope of activities as China gains access to the World Trade Organization and other development opportunities, AOL said.

As of May, Legend Holdings had 1.7 million interactive-services users and 2.9 million registered e-mail users. Daily page views reached about 34 million.