CHINA: U.S. MEDIA GIANT AOL TIME WARNER AND CHINESE COMPUTER MANUFACTURER LEGEND HOLDINGS UNVEIL $200 MILLION U.S. DOLLAR JOINT INTERNET VENTURE

Record ID: 208517

  • Title: CHINA: U.S. MEDIA GIANT AOL TIME WARNER AND CHINESE COMPUTER MANUFACTURER LEGEND HOLDINGS UNVEIL $200 MILLION U.S. DOLLAR JOINT INTERNET VENTURE
  • Date: 11th June 2001
  • Summary: (W4) BEIJING, CHINA (JUNE 11, 2001) (REUTERS - ACCESS ALL) 1. WIDE/SLV OF NEWS CONFERENCE (2 SHOTS) 0.10 2. WS: JOURNALISTS 0.15 3. SV: PRESIDENT OF AOL INTERNATIONAL MICHAEL LYNTON AND PRESIDENT AND CEO OF LEGEND HOLDINGS YANG YUANQING SHAKING HANDS AHEAD OF SIGNING 200 MILLION U.S. DOLLAR AGREEMENT 0.22 4. SV'S: AGREEMENT BEING SIGNED / LYNTON AND YANG SHAKING HANDS AFTER SIGNING (2 SHOTS) 0.35 5. ZOOM OUT: AOL AND LEGEND MANAGEMENT PUTTING HANDS ON TOP OF EACH OTHER 0.45 6. SV: JOURNALISTS 0.49 7. SV: (SOUNDBITE) (English) GERALD LEVIN, AOL TIME WARNER CHIEF EXECUTIVE, SAYING: "The teaming up of the world's leading interactive services company and the leading Chinese PC manufacturer and the provider of interactive services is a milestone for all involved. For Legend, it offers the opportunity to employ AOL's world-class technology and online expertise in building a service suited to the unique aspirations, needs and tastes of Chinese consumers. For AOL Time Warner, it creates a chance to combine our assets with Legend's unparalleled experience and leadership in bringing the power of the online medium to the world's largest marketplace." 1.47 8. SV: JOURNALISTS 1.50 9. SCU: (SOUNDBITE) (English) GERALD LEVIN, AOL TIME WARNER CHIEF EXECUTIVE, SAYING: "As AOL and Legend make the interactive medium increasing accessible, new businesses, new dreams, and new possibilities will proliferate. Together, AOL and Legend will help add new momentum to Chinese economic acceleration and open new avenues to the limitless creativity and inventiveness of the Chinese people." 2.23 10. WS: JOURNALISTS 2.27 11. SV: (SOUNDBITE) (Mandarin) LIU CHUANZHI, CHAIRMAN OF LEGEND HOLDINGS, SAYING: "I'm very happy that Legend has this opportunity to work together with AOL. I believe this cooperation is a strategic move that will have a profound impact on the Chinese Internet market." 2.42 12. SV: AOL PROMO VIDEO ON SCREEN 2.47 13. WS: NEWS CONFERENCE 2.52 (W4) BEIJING, CHINA (RECENT) (REUTERS - ACCESS ALL) 14. MV: EXTERIOR OF LEGEND HOLDINGS BUILDING WITH FLAGS FLYING 2.56 15. WS: PEOPLE EXITING LEGEND BUILDING 3.01 16. SV: LEGEND BILLBOARD ADVERTISEMENT FEATURING MAN IN SUIT 3.05 17. MV: OFFICE EMPLOYEES WALKING PAST LEGEND ADVERTISEMENT 3.11 18. CU: LEGEND BILLBOARD ADVERTISEMENT FEATURING LITTLE BOY AND COMPUTER (2 SHOTS) 3.19 19. WS: LEGEND EXHIBITION 3.22 20. CU: LEGEND SIGN 3.26 21. CU: LEGEND ADVERTISEMENT FEATURING ACTRESS ZHANG ZIYI 3.31 22. MV: PEOPLE WALKING PAST LEGEND STORE 3.37 23. SV: LEGEND ADVERTISEMENT FEATURING DIFFERENT POTENTIAL LEGEND CUSTOMERS 3.41 24. SV: INTERIOR OF LEGEND SHOWROOM 3.46 25. VARIOUS OF PEOPLE USING COMPUTERS IN EXHIBITION HALL (4 SHOTS) 4.04 26. SV: EXTERIOR OF INTERNET CAFE 4.08 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 26th June 2001 13:00
  • Keywords:
  • Location: BEIJING, CHINA
  • Country: China
  • Reuters ID: LVA8GSDR3V4VKKUBWK0EXC7AZ1V3
  • Story Text: U.S. media giant AOL Time Warner has announced a joint
    venture with top a China personal computer manufacturer Legend
    Holdings to provide consumer Internet services to the Chinese
    market.



    AOL Time Warner and Legend Holdings unveiled a two
    hundred million dollar Internet joint venture on Monday (June
    11).

    Legend will hold 51 percent in the venture, while AOL will
    hold the remaining 49 percent stake. Each firm would
    invest $100 million (USD) in the new company.

    "The teaming up of the world's leading interactive
    services company and the leading Chinese PC manufacturer
    and the provider of interactive services is a milestone for
    all involved. For Legend, it offers the opportunity to
    employ AOL's world-class technology and online expertise in
    building a service suited to the unique aspirations,
    needs and tastes of Chinese consumers. For AOL Time Warner, it
    creates a chance to combine our assets with
    Legend's unparalleled experience and leadership in bringing
    the power of the online medium to the world's
    largest marketplace," said AOL Time Warner Chief Executive
    Gerald Levin.

    "As AOL and Legend make the interactive medium increasing
    accessible, new businesses, new dreams, and new
    possibilities will proliferate. Together, AOL and Legend will
    help add new momentum to Chinese economic
    acceleration and open new avenues to the limitless creativity
    and inventiveness of the Chinese people," said
    Levin.

    "I'm very happy that Legend has this opportunity to work
    together with AOL. I believe this cooperation is a
    strategic move that will have a profound impact on the Chinese
    Internet market," said Chairman of Legend Holdings
    Liu Chuanzhi.

    The pending deal is expected to be structured to navigate
    Beijing's ban on foreign ownership of content
    providers.

    The tie-up is also expected to try to leverage Legend's
    dominance of the mainland's fast-growing consumer
    PC market with the experience of AOL's success in the United
    States. It is also seen accelerating consolidation
    in China's crowded and money-losing Internet sector.

    It may be years before the AOL/Legend venture generates
    any significant return.

    A phalanx of portal firms, the top three of which are
    Nasdaq listed, have thus far captured the eyeballs but not
    the wallets of China's Internet users.

    Still, the tie-up will give AOL a significant head-start
    in China ahead of foreign rivals such as Yahoo Inc and Terra
    Lycos.

    Legend has a 40 percent share of China's consumer market
    and already bundles online access capability onto
    some PCs via its www.fm365.com site.

    For Legend, the current benefits to such a partnership are
    merely to beat the other internet service providers,
    such as sina and sohu, to the punch.

    The tie-up will accelerate the already-percolating
    consolidation of China's fast growing but unprofitable
    Internet sector.


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