Netease Tech, 01/04/10
An employee at Chinese online search company Baidu (Nasdaq: BIDU) has revealed that the company has registered a new company for online video. The new company is to be helmed by Gong Yu, former COO and president of China Mobile's (NYSE: CHL; 0941.HK) 12580 information service and former COO of Sohu (Nasdaq: SOHU). Baidu is reportedly in discussion with foreign investors for a joint venture, while detailed plans may be publicly revealed in February or March.
Both Baidu and Gong Yu were unwilling to comment on the rumor.
Editor's Note: According to another industry source, Baidu plans to invest for a controlling stake in the new company, which has already won USD 60 mln in funding from a private U.S. fund. The new online video site will adopt an advertisement-based model along with licensed content, and is expected to go online in March.
For more background on this topic, please see "Rumor: China Mobile's 12580 Chairman Leaves for Baidu" MD 12/31/09 and "Rumor: Baidu to Pursue Online Video, Sets Sights on Youku" MD 12/23/09 issues.