Rumor: Youku, Tudou to IPO
Sina Tech, 9/14/10
Industry sources have told overseas media that Chinese video sites Youku and Tudou are reportedly both planning to IPO overseas. The sources said both companies have retained the services of investment banks, and Tudou could IPO as early as before the end of this year, though other reports claim it is more likely to happen in Q1 2011 or later.
Tudou CEO Gary Wang and Youku CEO Victor Koo would not comment on whether their companies’ planned to IPO. Wang said an IPO would depend on market conditions, but the company was developing well in any case. Wang also believes that China’s online video market would grow by 100% to 200% next year, estimating total market value of RMB 1 bln in 2009.
Koo said Youku had moved past the “burn money” stage of high spending with low revenue, but declined to comment on current profitability. Youku said earlier this year that it expects to achieve profitability in three years’ time, followed by an IPO on either the New York or Hong Kong markets.
Editor’s Note: In an interview with Bloomberg News, Wang said that Tudou plans to list on a “western market” fairly soon in order to raise funds to compete with Youku.
Keywords: Gary Wang Internet IPO Tudou Youku online video funding Victor Koo Youku market size growth rate
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