Providence deal with Baidu confirmed
Leading TMT specialist investor Providence Equity Partners has reportedly sealed its deal with PRC Internet search leader Baidu to invest $50 million into a Hulu-like online video service.
Baidu itself will commit around $10 million to the venture, which will provide licensed premium video content to users on an advertising-supported basis, with Yu Gong, former president and COO of China Mobile's 12580 video unit, as CEO of the new arm. The new company will use www.qiyi.com as its domain name. Baidu will continue to be the majority owner of the new business.
Providence has also invested Hulu, which pioneered this business model in the US. “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," Jonathan Nelson, CEO of Providence, said publicly. "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.”
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