China's regulatory restrictions on foreign ownership of Internet companies requires Legend to hold a majority stake. Speculation on AOL's interest in China During the last three months, there has been much speculation on AOL's business development and investment interests in China. But the impact on Legend won't be that much simply because FM 365 is not a revenue generating vehicle. AOL has more to gain Analysts also say AOL has more to gain from the joint venture than the Chinese PC maker. 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. An AOL alliance with Legend could lead to the bundling of its Internet services with Legend PCs. Pages will open in a new browser window External sites are not endorsed by CNN Interactive. An AOL Time Warner Company.