Baidu Video to Be Spun Off, Secures RMB 1 Bln Funding
Tencent Tech, 4/20/16
Chinese internet company Baidu (Nasdaq: BIDU) recently announced that its online video platform Baidu Video will be spun off as an independent company and has secured nearly RMB 1 bln funding led by Shanghai-based New Culture Media Group (300336.SZ) with participation by SAIF Partners. Hu Hao, general manager of the Baidu Video business division, will be the new company's CEO. This is the latest measure taken by Baidu under its Carrier Plan, under which Baidu will accept investments from third parties in specific projects. Announced in July 2015, Baidu's Carrier Plan has designated the company's O2O food delivery platform Baidu Takeout Delivery, mobile home-screen replacement and handset management app 91 Desktop, and at least 10 other Baidu projects as candidates for such outside investment.
Baidu Video will specialize in building a professionally generated content (PGC) platform and will continue to offer video search and aggregation services. Baidu Video has started a new PGC investment program with RMB 500 mln first-stage funding, which will focus on investments in high-quality PGC and creators.
Baidu's main entertainment businesses include Baidu Video, online video subsidiary iQiyi, and online and mobile group buy platform Nuomi.com's cinema ticket sales business.
New Culture Media Group said yesterday evening that Baidu will establish a new Beijing-based subsidiary called Xiaodu Huyu Technology to operate Baidu Video and that New Culture Media Group will invest up to RMB 500 mln of its own funds in Xiaodu to take a 17% to 22% equity stake.
Editor's Note: For more information on this topic, please see "Baidu to Accept Third-party Investment in Select Projects," MD 7/31/15 issue and "Baidu Takeout Delivery Wins USD 70 Mln Investment Led by Ajise," MD 7/30/15 issue and "91 Desktop Wins New Funding at USD 100 Mln Valuation," MD 12/22/15 issue.
Keywords: funding financing VC Internet online video Baidu SAIF BIDU Hu Hao PGC New Culture Media 300336.SZ spin-off Baidu Video Carrier Plan
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