Skype Forms Joint Venture With Chinese CompanySkype Forms Joint Venture With Chinese Company

Skype Technologies and Tom Online Inc. of China have agreed to start a joint company that would distribute jointly developed Internet telephony software to service providers.

Tom, a Hong Kong-based wireless Internet service, and Luxembourg-based Skype have developed a Chinese version of Skype software under an agreement the companies launched in November 2004. The co-branded software has more than 2.5 million registered users, the companies said.

Tom has more than 70 million subscribers to its service, the company said.

Under the latest agreement, Tom will hold a 51 percent share of the joint venture, with Skype holding the remaining share. The combined company will develop, customize and distribute a simplified Chinese version of Skype software and premium services to Internet users and service providers in China.