HONG KONG -- Processor and software developer Transmeta Corp. is joining with two Hong Kong based companies to form a joint venture to develop and sell the Midori Linux operating system together with embedded and portable computing equipment into the greater China market.
The partners are Culturecom Holdings Ltd., the developer of a processor that supports Chinese written characters, and eForce Holdings Ltd. a logistics and sales group.
Culturecom has already worked with Transmeta and IBM on the development of its V-Dragon processor which is part-numbered IA-3210 (see July 28 story).
Now through a complex arrangement of company holdings Transmeta, Culturecom and eForce are to control two companies, Beijing Chinese 2000 Technology Ltd. on the hardware side and Beijing Redflag Chinese 2000 Software Technology Ltd. on the software side. The former is to be wholly owned by the group and the later is a joint venture with a subsidiary of the Beijing Chinese Academy of Sciences.
At the top of the complex tree of company holdings is a venture called Chinese 2 Linux (Holdings) Ltd. (C2L) in which Transmeta is to hold 16.7 percent of the stock, eForce is to have 42.5 percent and Culturecom is to own 40.8 percent, Culturecom said in document available on its website when this story was first posted.
C2L, has contracted to pay Transmeta licensing fees to use and develop the Midori operating system, and its subsidiaries would be engaged mainly in the development and sale of Midori Linux application software and embedded devices, Culturecom said.
The creation of C2L is a change of direction for Culturecom and eForce who had been working together on the creation of a Linux variant called Chinese 2000.
According to Culturecom, the directors of the company consider that the business prospects for C2L with Transmeta involved and the synergy effect created by combining Chinese 2000 and the Midori OS would yield better value to the Culturecom Group than Chinese 2000 alone.
"We are happy to form the joint venture with eForce and Culturecom. We believe that the formidable partnership can definitely help achieving our target to support customer's needs in the Greater China and other Asian regions. We are confident to see the bright future of this partnership," said Matthew Perry, president and chief executive officer of Transmeta, in a statement.
Culturecom also announced that trading in its stock on the Hong Kong Stock Exchange resumed with effect from July 30. The stock had been suspended with effect from July 23.