Friday, February 26, 2010
Sounds like Google's decision to acquire YouTube, right? According to Baidu Press Office the company confirms it has received a $50 million investment from Providence Equity Partners to start an online video subsidiary.
The aim of the deal is to develop an advertising supported online video business providing premium licensed content in China. The Chinese-language site’s name is registered as Qiyi.com. Being China’s leading search provider, Baidu makes an important step into what’s predicted to be highly popular online video ad spending.
"The online video market has great potential for growth in China," said Mr. Robin Li, Chief Executive Officer of Baidu, Inc. "Providence is our ideal partner in this space as it has rich experience in investing in and managing businesses that distribute licensed content online. Providence partnership with Baidu isn't by mere chance, since PE has also backed up a similar US service - Hulu, investing $100 million in its start-up package.
Obviously, Online Video Ad spending is growing in both importance and demand..
Baidu Makes It Official: Providence Equity Backs Video JV With $50 Million Investment (PaidContent.org)
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