RealTime IT News

chinadotcom, Softbank Form Asia Consultancy

chinadotcom corp. Friday signed a preliminary agreement with Softbank Investment Strategic to create a $100 million consulting company chartered with advising Asia-bound Internet companies.

The joint venture seeks to accelerate the entry of Internet plays to the Asian market, and intends to assist through partnership or joint venture with the imported properties. On the technological side, the consulting firm's partners will work with chinadotcom (CHINA) subsidiary the Web Connection.

The new company will be established through a share swap agreement. Details of the arrangement will be released when the companies finalize the agreement at the end of the month.

"We are excited about this joint venture agreement and are looking forward to shaping the new company into a dynamic, investment-driven vehicle for promising Internet businesses," said Peter Yip, chinadotcom's chief executive officer.

"There is great synergy between the two companies, as both chinadotcom and Softbank Investment Strategic are dedicated to making investments through incubating and accelerating the development of new and existing Internet businesses."

The partnership represents an extension of chinadotcom corp.'s operations into the Japanese consulting arena, while broadening Softbank's presence in the wider Asia market. chinadotcom previously forayed into the Japanese market through a partnership with TransCosmos. In its investment program, chinadotcom has invested thus far in 30 Internet companies.

The venture will also cater to offline properties, a part of Softbank Investment Strategic's intention to transform offline businesses into online players in addition to localizing known Net names.