Rumor: Baidu in Talks to Acquire Ku6, 56.com

DoNews, 10/16/13

According to a knowledgeable source, Chinese internet company Baidu (Nasdaq: BIDU) is currently involved in discussions to acquire Shanda Interactive's online video subsidiary Ku6 (Nasdaq: KUTV). Baidu is also looking into the possible acquisition of 56.com, the online video sharing site of Beijing-based social networking site operator Renren (NYSE: RENN).

The source indicated that the recent rise in Ku6's share price may be due to Baidu acquisition rumors, adding that Ku6's focus on user-generated content (UGC) complements Baidu's own online video sites iQiyi and PPS.

Editor's Note: Baidu was one of the investors in Ku6's Series A funding in May 2007 (see "Ku6 2007 Ad Revenues Surpass RMB 25 mln," MD 1/24/08 issue). For more information on Baidu's acquisitions in the online video space, please see "Update: Baidu Acquires PPS Online Video Business for USD 370 Mln," MD 5/07/13 issue.

Keywords: Shanda Internet online video 56.com Ku6 Baidu Renren BIDU KUTV RENN M&A

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