Sun Media, Lenovo form venture in China

Sun Media Investment Holdings Ltd and Lenovo Group have formed a joint venture, Sun 365 Multi-media Holdings Ltd, to develop broadband multimedia content and applications in China. The agreement between the two companies was signed in July 2004.

According to the agreement, the aggregate valuation of Sun 365 is $15 million. Sun Media Investment and Lenovo hold 85n percent and 15 percent, respectively in the new joint venture. The joint venture will have the right of first refusal to bundle multimedia content services with the PCs, mobile communication devices and handsets sold under the Lenovo brand in China. The cooperation is a nonexclusive one.