Sun Media Investment Holdings, Ltd., led by Chinese broadcaster, Yang Lan, and Lenovo Group have formed a joint venture, Sun 365 Multi-media Holdings Ltd., to develop broadband multi-media content and applications in China.
The agreement between the two companies was signed in July 2004, according to which, the aggregate valuation of Sun 365 is US$15 million. Sun Media Investment and Lenovo hold 85% and 15% respectively in the new joint venture. Sun Media brings to the new company a multi-media production subsidiary in mainland China, certain marketing rights in connection with the exploitation of Ms. Yang Lan's brand image, and a certain amount of cash. Lenovo's non-cash contribution includes the right to use its existing brand FM365. The joint venture will have the right of first refusal to bundle multi-media content services with the personal computers, mobile communication devices and handsets sold under the Lenovo brand in China. The cooperation is a non-exclusive one. The Chairperson of the Board of Sun 365 is Ms. Yang Lan, who is also the Chairperson of Sun Media Investment Holdings, Ltd.
The new partnership grows out of recognition of the huge potential of the emerging broadband multi-media market in China. The principal business of Sun 365 is to develop multi-media businesses including creation of content and copyrights, and development of distribution networks. Detailed applications of the business model of the joint venture are still under development, no further details are disclosed to the market at this time.
