Observers also see Legend-AOL alliance as a giant that will shake the battered sector, forcing China's struggling Net firms to consolidate. I believe this cooperation is a strategic move which will have a profound impact on the China Internet industry. Benefits less clear for Legend Analysts say AOL has the most to gain. It gives them instant branding. Legend chief executive Liu Chuan Zhi said recently in Hong Kong that his company had 30 percent of the domestic PC market.
Legend also has an extensive customer base.
The benefits for Legend are less clear. China's portal business is already seeing a wave of merger and acquisition activity as portals scamper to trim down and consolidate. But the deal is reported to have hit a standstill. AOL-Legend will probably take some time to gel but will become a key player by next year. An AOL Time Warner Company.