Legend's confirmation of AOL talks followed a day of dramatic trading activity that sent its shares surging 5.56 percent. The deal marks AOL's first step into China's fast-growing market of 22 million Net users. It gives them instant branding. Legend is one of the most respected brands in the Mainland market. Legend chief executive Liu Chuan Zhi said recently in Hong Kong that his company had 30 percent of the domestic PC market and 10 percent of the Asian market, and its profit rate had been 30 percent for the past three years.
Legend also has an extensive and immediate user base.
Analysts already anticipate that an AOL presence in China is sure to rock the industry, spurring a wave of merger and acquisition activity as local Web portals scamper to trim down and consolidate. Now with the AOL-Legend link up you have an 800 pound gorilla coming in and sitting on your living room couch in terms of advertising spend. According to a company statement, Wang resigned as the company's president and chief executive officer to pursue other interests. But market talk suggests that Wang moved aside so a more suitable CEO could take the reins of the company as it woos potential buyers. An AOL Time Warner Company.