Sohu IT, 1/06/10
Baidu (Nasdaq: BIDU) announced today the creation of an independent company specializing in legal, high-definition online video content. Baidu officially confirmed that Gong Yu, former COO and president of China Mobile's (NYSE: CHL; 0941.HK) 12580 information service, will be the new company's CEO.
The new firm will work closely with major copyright holders to legally provide Internet users with films, TV dramas, sports programs, cartoons and other high quality video content.
Editor's Note: According to one industry source, Baidu is establishing the new company in partnership with Hulu investor Providence Equity Partners, with both parties providing funding for purchasing copyrights. The source said the new firm has already raised USD 60 mln in private investment, while Baidu will invest an additional USD 10 mln. For more background on this topic, please see "Rumor: Baidu Registers Online Video Company" MD 1/04/10 issue.