Rumor: Tudou Postpones IPO
Sohu IT, 11/30/10
A reliable industry source revealed today that owing to a host of reasons, Chinese internet video site Tudou has postponed its planned IPO until after Christmas, with the company and its finance team inclining in favor of an IPO around the Chinese New Year holiday in early February.
The main reason for the delay in Tudou's IPO is reportedly "accounting factors." The source said that the company still had many financial statements to prepare before it would be ready to list, and that after rival Youku's announcement of its share price, Tudou is reconsidering how to price and assess itself. As several Chinese companies will be listing in the United States before Christmas, Tudou is concerned that a pre-Christmas IPO might be affected by investor distraction - hence its choice to push back the IPO.
A source in the investment community said that Tudou had "made a mistake it shouldn't have, and that that is what led to it pushing back its IPO. In September, CEO Gary Wang announced publicly that Tudou was going to list on the Nasdaq in Q4 2010, but the company was still subject to the quiet period around the submission of its application at the time. In November, possibly because someone reported it, the SEC found that Gary Wang had made a public announcement during this period, issued the company a warning, and required the company to officially submit an application."
Keywords: Gary Wang Internet IPO Tudou online video
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