Joseph O'Halloran ©RapidTVNews | 31-08-2011
Hot on the heels of DreamWorks hooking up with Youku, fellow Chinese online video provider Tudou has received a huge injection of cash from Sina Corp.
According to reports in the Wall Street Journal, Sina has paid $66.4 million to acquire a 9% stake in the Chinese online video company in order to take a bigger bite out of the rapidly growing online video arena. The country is seen to offer particular potential in over-the-top (OTT) services.
The WSJ says that one reason for the deal is the intensifying competition in China’s online video market which is pushing up licensing costs for content and making it harder to retain users.
In a statement to Chinese news sources, Tudou said simply that it is open to “strategic business cooperation in multiple areas” with Sina and that the investment would not affect the technological direction of the firm.