Xiaomi invests US$300MN in online video portal iQiyi.com
| 21 November 2014
A US$300 million investment in iQiyi.com, the video streaming division of search engine giant Baidu, has been announced by China's leading smartphone manufacturer Xiaomi and an affiliated fund plan.
It is the second recent investment in China's surging online video market for Xiaomi, which last week announced it would acquire an unspecified stake in streaming giant Youku Tudou.
In this most recent move Xiaomi will team up with Shunwei Capital, which was set up by Xiaomi chairman and chief executive Lei Jun to invest in iQiyi. It will make Xiaomi the second largest shareholder in the video portal after Baidu.
"The investment is mainly for content," said Chen Tong, the newly-appointed vice president, content investment and content operation, Xiaomi.
Gong Yu, chief executive of iQiyi.com, said: "Just like Xiaomi, iQiyi has a large number of young users. We will produce original content including animation, TV drama and variety shows for Xiaomi's users."
The decision by Xiaomi to invest heavily in the online streaming sector comes soon after China's media regulators stepped up scrutiny on online video providers.