CEO Denies Rumors Pomoho Short on Funds
Netease Tech, 7/31/09
Individuals close to Pomoho have claimed the Chinese video sharing website is losing funding, revenue and personnel, but CEO Zhao Pinhong has denied that the firm is in dire straits. Industry sources have said that less than ten people are currently employed at the company's Beijing office, with the marketing department now down to just two employees. The same sources added that sales figures prior to the company's layoff of marketing department staff were at roughly RMB 400,000 per month, but are now at approximately RMB 200,000 per month. Views differ between the company's senior administration and its executives regarding the direction of the company according to sources that pointed out the company's general manager, Wang Shaolong, and one marketing deputy general manager were recently dismissed.
Insiders indicate that the company has already relocated to defray the cost of rent, and that nearly all the company's income is spent on technological development.
Pomoho CEO Zhao Pinhong confirmed that the firm moved its general headquarters to Hangzhou from Beijing in March 2009, leaving around 10 people behind, but pointed out that the Hangzhou workforce has grown to 80-90 people. Zhao said the company has already received RMB 6 mln in support funding from the Hangzhou government and will balance the books by September.
Zhao denied rumors that the company is funneling all its sales revenue into R&D and said Pomoho allocates its revenue reasonably. Zhao added that Pomoho plans to create a 3G mobile video sharing platform in the future and reach out to venture capital investors, noting that Pomoho is already in contact with certain VCs.
Editor’s Note: For more information on this topic, please see “Pomoho Raises RMB 6 Mln from Hangzhou Government” MD 3/26/09 issue
and "Pomoho Confirms Layoff Plans" MD 11/19/08 issue.
Keywords: online video Wang Shaolong Internet marketing Pomoho revenue funding VC Zhao Pinhong government support mobile video 3G mobile data HR
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