Update: Qihoo 360, Xueda Form Internet Education JV 'Sunshine Rabbit'
DoNews, 3/06/15
Chinese internet services and security software provider Qihoo 360 (NYSE: QIHU) and Chinese primary and secondary student tutoring services provider Xueda Education Group (NYSE: XUE) registered a joint-venture company in Beijing on February 26 named Yangguang Tu (literally "Sunshine Rabbit").
The company has registered capital of RMB 20 mln. Xueda CEO Jin Xin is named as chairman, with board members including Qihoo 360 president Qi Xiangdong and vice president Yu Guangdong. Li Junyi, a senior executive at Xueda, serves as CEO of the joint venture.
Sunshine Rabbit's principal business is given as online education, although no specific details regarding products have yet been released.
In the past year, Xueda has been making consistent losses, and its share price has remained depressed, which could be the main reason for its seeking out cooperation to push into online education. For Qihoo, the cooperation is its first foray into online education.
Editor's Note: In a separate statement, Xueda CEO Jin Xin suggested a focus on mobile education, saying, "I am delighted for Xueda to be working closely with Qihoo 360, as we explore ways to create a personalized mobile learning platform to serve students." For more information on this topic, please see "Xueda Education to Cooperate with Baidu, Qihoo 360 on Mobile Products," MD 3/05/15 issue.
Keywords: Xueda Sunshine Rabbit Qi Xiangdong Internet online education Jin Xin JV Qihoo 360 QIHU Yu Guangdong XUE
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