Hulu investors, Providence form joint venture with Baidu to create online video company in China
BEIJING, Feb. 26 /PRNewswire-Asia/ — Baidu, Inc. (Nasdaq: BIDU), the leading Chinese language Internet search provider, today announced that Baidu and Providence Equity Partners (“Providence”) have signed an agreement pursuant to which Providence will invest$50 million in Baidu’s new online video company to develop an advertising supported online video business providing premium licensed content in China. Baidu will continue to maintain majority ownership in the company. The new online video company has registered http://www.qiyi.com as its domain name.
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“The online video market has great potential for growth in China,” said Mr. Robin Li, Chief Executive Officer of Baidu, Inc. “Providence is our ideal partner in this space as it has rich experience in investing in and managing businesses that distribute licensed content online. With Baidu’s strong ability to drive traffic and offer innovative products that suit user needs, we are very excited about the future prospects of this new company.”
“We are very pleased to partner with Baidu and are confident that this new venture will become an industry leader,” saidJonathan Nelson, Chief Executive Officer of Providence. “As the world’s largest Chinese language internet search company and also the dominant video search engine in China, Baidu has unmatched competitive advantages in its user base and traffic. The new venture will provide users with a first-class viewing experience, and will work with regulators to ensure the lawful distribution of professionally produced media and entertainment content on the internet.”
About Baidu
Baidu, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu’s ADSs, each of which represents one Class A ordinary share, are currently trading on the NASDAQ Global Select Market under the symbol “BIDU.”
About Providence Equity Partners
Providence Equity Partners is the leading global private equity firm specializing in equity investments in media, entertainment, communications and information services companies around the world. The principals of Providencemanage funds with over $22 billion in equity commitments and have invested in more than 100 companies operating in over 20 countries since the firm’s inception in 1989. Significant existing and prior investments include Bresnan Broadband Holdings, Casema, Com Hem, Digiturk, Education Management Corporation, eircom, Hulu, Idea Cellular, Kabel Deutschland, NexTag, Ono, PanAmSat, ProSiebenSat.1, Recoletos, TDC, Univision, VoiceStream Wireless, Warner Music Group, Western Wireless and Yankees Entertainment & Sports Network. Providence is headquartered in Providence, RI(USA) and has offices in New York, London, Los Angeles, Hong Kong and New Delhi. Visit http://www.provequity.com for more information.