Chinese smartphone maker Xiaomi plans to acquire a stake in local video streaming firm Youku Tudou on the open market, the internet TV company has announced.
Financial details were not disclosed but the move comes shortly after Xiaomi said it would…
Chinese smartphone maker Xiaomi plans to acquire a stake in local video streaming firm Youku Tudou on the open market, the internet TV company has announced.
Financial details were not disclosed but the move comes shortly after Xiaomi said it would invest US$1bn on internet TV content deals.
Their strategic partnership will see Xiaomi licence Youku Tudou’s video content, while both companies jointly invest in production and content distribution.
“Both Youku Tudou and Xiaomi have been pioneering multi-screen ecosystem development in the mobile internet era,” said Youku Tudou chairman Victor Koo.
“With the new partnership, we’ll leverage our respective capabilities to strengthen our ecosystems and to enhance user experience. Both Youku Tudou and Xiaomi have had initial success in developing intellectual properties and building fan economy for future revenue growth. We will work closely to unlock further opportunities in this area going forward.”
Meanwhile, Xiaomi reportedly plans to invest U$300m in another Chinese online streaming site called iQiyi, alongside a further US$300m being injected by the latter’s owner, search engine giant Baidu.
Last week, reports suggested that Xiaomi was in talks to raise about US$1.5bn in a private stake sale, which would value the company at around US$40bn, more than rivals Sony and Lenovo combined.
Before that, the smartphone maker reportedly secured a US$1bn, three-year loan from 29 banks in its first foray into international lending markets.
Xiaomi, founded by entrepreneur Lei Jun, has sought to distinguish itself from local rivals, which include Apple and Samsung, by producing lower-cost handsets, tablets, routers and TV equipment.
Xiaomi says it is ready to go global and there has been speculation that it will use the US$1.5bn to push into new markets in Asia and Latin America.
