E-Surfing Media Achieves Profitability on Mobile Video Business
Sina Tech, 10/30/12
After more than two years of operations, recent figures indicate that E-Surfing Media, one of China Telecom's (NYSE: CHA; 0728.HK) eight vertical service bases, has grown to 70 mln users, and that its mobile video service has begun to turn a profit. Virtually all of the content available through E-Surfing Video is made available on a pay-to-view basis, with E-Surfing Media covering nearly 80% of all Chinese video content through revenue-sharing agreements with Chinese online video sites Youku (NYSE: YOKU), LeTV (300104.SZ), and Baidu's (Nasdaq: BIDU) joint-venture iQiyi. Revenues from the service could reach RMB 1 bln for 2012.
E-Surfing Media completed its first round of private financing in June 2012, raising RMB 380 mln through the sale of a 20% stake in the company, suggesting a valuation of RMB 1.9 bln. The China Merchants Group invested RMB 102 mln in the company, in exchange for a 5.37% stake.
Editor's Note: For more background on this topic, please see "China Merchants Group Invests RMB 102 Mln in E-Surfing Media" MD 6/05/12 issue.
Keywords: business model funding China Telecom revenue valuation wireless online video mobile video China Merchants Group 0728.HK CHA
Sending
