A source familiar with the matter has revealed that Beijing-based Android device maker Xiaomi will invest in Chinese internet and software company Xunlei. Negotiations have already entered the final stages, and a formal agreement may be reached by as early as next week. The partnership will likely see Xunlei's online video content services integrated with several of Xiaomi's smart devices.
According to Liu Fei, CEO of Xunlei's "Xunlei Kankan" P2P video service, Xunlei Kankan collected in excess of RMB 10 mln in revenue from paid online video content downloads in 2013, representing almost 10% of company-wide revenue, a nearly 10-fold increase over premium video revenue collected in 2012. Xunlei expects that premium video revenue in 2014 will surpass RMB 50 mln.
Neither Xiaomi nor Xunlei has commented on the matter.
Editor's Note: For more information on this topic, please see "Rumor: Sohu to Acquire Xunlei Kankan," MD 10/25/13 issue.