MUMBAI: Sun Media Investment Holdings Ltd., (led by Chinese broadcaster Yang Lan) and the Lenovo Group have formed a joint venture -Sun 365 Multi-media Holdings Ltd., to develop broadband multimedia content and applications in China. The agreement was signed in July 2004.

According to the agreement, the aggregate valuation of Sun 365 is $15 million. Sun Media Investment and Lenovo hold 85 per cent and 15 per cent respectively in the new joint venture. Sun Media will bring to the new company a multimedia production subsidiary in mainland China along with certain marketing rights in connection with the exploitation of 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 JV will have the right of first refusal to bundle multimedia 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. Yang LAN will be the chairperson of the Board of Sun 365.

The new partnership has been formed keeping in mind the huge potential of the emerging broadband multimedia market in China. The principal business of Sun 365 will be to develop multimedia businesses including creation of content and copyrights and development of distribution networks. The detailed applications of the business model of the JV are still under development and no further details are disclosed as of now.

Commenting on the new alliance, Sun Media Investment Holdings chairperson Yang LAN said, ''We are thrilled to be entering into a new venture with Lenovo Group, one of the most trusted and respected names in China's IT industry. Sun 365 represents the alliance of a leading technology provider and a content provider, ultimately designed to create a richer, more interactive and personalized experience for consumers. We believe Sun 365 is the new paradigm for the development of new media businesses in China.''