ISP Baidu creates largest Chinese video platform with $370 million acquisition of PPS
Chinese ISP Baidu creates Chinaís biggest internet video provider with acquisition of PPS for $370 million and merging it with its own service iQiyi
Chinese internet service provider (ISP) Baiduís
acquisition of internet video PPS for $370 million has created the countryís largest online video provider.
Eight-year old PPS will merge and operate as a sub-band under Badiuís own video service iQiyi
as announced in its press release
. The transaction is expected to be completed by the end of this quarter.
The newly created online video platform will become China's largest service by the number of mobile users and video viewing time due to the merger as iQiyi CEO Gong Yu commented, "The merger of iQiyi and PPS's online video business is a major step toward consolidation in the industry and will contribute to the development of China's internet video industry. The merger will generate significant synergies, and will provide for an improved user experience as well as more and better content. It will also deliver better marketing value and a wider range of options for advertisers."
Baidu faces competition in its search business from Qihoo and online video service Youku Tudo has signalled clear intent to raise its game as PPS founder and chairman Zhang Hongyu alludes. He comments, "As a leading Chinese online video brand with an eight year history, PPS has the opportunity to join with iQiyi in opening up future markets, and we are excited to be working together to reshape the industry. We will strive to maximize the value of our combined resources and integrated teams, and we will jointly contribute to the progress and maturation of China's video industry."
Zhang Hongyu and PPS president Xu Weifeng will serve as co-presidents at iQiyi and will be in charge of the PPS sub-brand and new business development. Gong Yu will continue to be CEO of iQiyi. Got a good news story? Tell us at SMP contact.