China's Baidu expands online video business with $370 million acquisition

China's online video market is fragmented, and competition has been fierce

China's largest search engine Baidu is getting closer to becoming the country's largest online video provider with a new US$370 million acquisition.

Baidu is spending the money to buy the online video business of PPS, a popular video sharing company in China, it said Tuesday. The acquisition is expected to close in the second quarter of this year.

Following the acquisition, the online video business of PPS will be merged into Baidu's own video platform, known as iQiyi. The search giant claims this will turn iQiyi into China's largest online video platform by number of mobile users and video viewing time.

The acquisition by Baidu points to further consolidation of China's online video sector. Last year, two of the country's leading video sites, Youku and Tudou, joined forces in a major merger. The companies re-branded themselves as Youku Tudou.

The country's online video sector, however, is still fragmented and no video site yet dominates the market. Chinese censors have blocked Google's YouTube.

Baidu's acquisition is expected to help its iQiyi platform better compete with Youku Tudou. Both are licensing TV shows and movies from local and foreign production studios to attract users, but also adding to their operating costs. Last year, Youku Tudou spent $118 million on content costs.

iQiyi's CEO Gong Yu said in a statement Tuesday that the acquisition will help the video site improve user experience and content offerings. The country has over 371 million Internet users who frequent online video sites, according to the China Internet Network Information Center.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsinternetbusiness issuesvideobaiduInternet-based applications and services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?