Xiaomi takes stake in Youku Tudou
| 13 November 2014
China's leading smartphone manufacturer Xiaomi Technology is to acquire a stake in online streaming giant Youku Tudou.
The share acquisition, which will take place on the open market, is aimed at developing a strategic partnership for content and technology, particularly multiscreen online video services. The value of the investment has not been made public, however, e-commerce titan Alibaba already owns 23.4% of Youku Tudou.
Xiaomi will license Youku Tudou's video content, while both companies will invest in the production and distribution of online television and film content.
The news comes shortly after Xiaomi announced it would invest a total of $1 billion to expand its Internet TV content.
"Both Youku Tudou and Xiaomi have been pioneering multiscreen ecosystem development in the mobile Internet era. With the new partnership, we'll leverage our respective capabilities to strengthen our ecosystems and to enhance user experience," said Victor Koo, founder and CEO, Youku Tudou.
Wang Chuan, VP and co-founder of Xiaomi, added: "Youku Tudou's user base and Xiaomi's fan community are closely associated. The partnership will bring the development of the Internet industry in China to the next level."
The country's online video market, valued at around $3 billion in 2014, currently faces tougher regulatory measures.