Sina Tech, 8/16/11
Chinese online video site Tudou has valued its IPO at a 62% discount compared to rival Youku (NYSE: YOKU), following a drop in equity prices this month. Tudou's content licensing costs increased eleven-fold between 2008 and 2010, reaching RMB 68.2 mln.
According to Chinese market research firm Analysys, Tudou had only 14% of China's online video advertising market in Q2 2011, compared to 17% at the end of 2010. Youku's market share increased by two percentage points to 23% and Sohu's (Nasdaq: SOHU) rose from 7.9% to 13%, while the remainder split between five other firms including Baidu's (Nasdaq: BIDU) joint-venture online video site Qiyi, Xunlei, and Ku6.