Providence Equity Partners will invest $50 million into Baidu’s video company with the aim to develop an advertising-supported online video business. The company will air licensed video content including movies, TV series, sporting events, animation and other content, creating a service that is already being compared to the Western-based Hulu.
The video company will be called Qiyi.
Baidu will continue to maintain majority ownership in the company. Yu Gong – who was most recently president and COO of China Mobile’s 12580 division and is formerly Sohu.com’s COO – has been hired to head up the company.
Qiyi’s launch will directly compete with popular Chinese video sites Youku, Tudou and 56.com. According to Baidu, the company will bank on its search users to popularise the service.
Baidu currently claims approximately 64 per cent of China’s search market.
"The online video market has great potential for growth in China," said Baidu's CEO, Robin Li. "With Baidu's strong ability to drive traffic and offer innovative products that suit user needs, we are very excited about the future prospects of this new company."
Providence, which focuses on media and entertainment financing, has invested in companies including Hulu and Warner Music Group. It is based in Providence, Rhode Island in the US, and has offices in Hong Kong, New Delhi, New York, London and Los Angeles.
The video company will be called Qiyi.
Baidu will continue to maintain majority ownership in the company. Yu Gong – who was most recently president and COO of China Mobile’s 12580 division and is formerly Sohu.com’s COO – has been hired to head up the company.
Qiyi’s launch will directly compete with popular Chinese video sites Youku, Tudou and 56.com. According to Baidu, the company will bank on its search users to popularise the service.
Baidu currently claims approximately 64 per cent of China’s search market.
"The online video market has great potential for growth in China," said Baidu's CEO, Robin Li. "With Baidu's strong ability to drive traffic and offer innovative products that suit user needs, we are very excited about the future prospects of this new company."
Providence, which focuses on media and entertainment financing, has invested in companies including Hulu and Warner Music Group. It is based in Providence, Rhode Island in the US, and has offices in Hong Kong, New Delhi, New York, London and Los Angeles.
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