China's Baidu plans IPO for IQiyi video platform
| 07 May 2014
Chinese company Baidu is to hold an initial public offering (IPO) for its video streaming site IQiyi within the next three years.
Baidu, the owner of China's largest search engine, wants its video streaming site to continue to compete for the country's 618 million mainland Internet users with Youku Tudou, which recently announced a US$1.22 billion investment led by the Alibaba Group.
"We want to have the largest market share and revenue share in the industry," Gong Yu, chief executive, IQiyi told Bloomberg. "By the time of the IPO, if our market share and revenue are both larger than Youku, we should have a bigger valuation than it does."
IQiyi expects to spend at least ¥300 million in 2014 to produce its own content aimed at viewers under 30. It already offers popular international content such as Mad Men and the South Korean drama My Love From the Star.
Mainland China's online video market is expected to reach ¥17.8 billion this year, and then double to ¥36.6 billion in 2017, according Internet consultant IResearch.