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Tag: Providence Equity Partners

  • Baidu Acquires Majority Stake In Chinese Video Property iQiyi

    In a move that should seal its spot as the Google of China, Baidu announced that it has acquired a stake in online video platform iQiyi from Providence Equity Partners though the property is closer to a Hulu than to a YouTube.

    iQiyi, formerly known as Qiyi, was the first online video platform in China to focus exclusively on fully licensed, high-def and professionally produced content, according to Baidu. While YouTube is obviously not exclusive to this content, it has been making major effort to feature more of it.

    As of August, iQiyi was ranked as the top online video platform in the country (based on average time spent per user). It was also number two in terms of total monthly time spent (based on data from iResearch).

    “Online video is a key strategic vertical for Baidu as user numbers and time-spend continue to increase exponentially, underscoring the tremendous potential in the sector,” said Baidu CEO Robin Li. “We are very pleased with the progress iQiyi has made and have confidence that iQiyi’s management will continue to grow its leading position. Going forward, we see users spending more and more time on online video and we will integrate iQiyi’s content more seamlessly into Baidu’s overall search and mobile services.”

    iQiyi founder and CEO Dr. Yu Gong said, “iQiyi has established a great business foundation and strong brand recognition and we look forward to leveraging our relationship with Baidu to further drive superior user and advertising customer experience.”

    Once the transaction is completed, Baidu will own the majority stake in the company. Providence Equity Partners recently sold a stake in Hulu as well.

  • Privat Equity’s 10% Hulu Stake for $200 Million

    Privat Equity’s 10% Hulu Stake for $200 Million

    Providence Equity Partners Inc. bought up a ten percent stake in Hulu, an online streaming video service, in 2007 for about $100 million. Now, the private equity investment firm is ready to part ways with that stake in the company, and is ready to except $200 million for it. Estimates say that puts Hulu’s value at about $2 billion.

    Other owners, Walt Disney Company, ComCast Corporation, and News Corp. are close to buying out Providence. Hulu plus currently has over 2 million paying subscribers and 38 million monthly visitors to their free streaming site.

    The LA Times reports that this shift of ownership could help streamline the decision making process when it comes to deciding a direction for the future of Hulu. Apparently this has been a point of contention for shareholder. Comcast, who controlled NBC Universal’s seat on the board agreed to give it up as part of an 2011 settlement with federal regulators. The concern was that Comcast would stifle Hulu due to a conflict of interest with their own bundled-channel television service.

    Take a look at this Bloomberg report on the Hulu sale:

    We’ll be keeping an eye on this sale from Providence and how it ultimately effects Hulu. It could be that the new ownership will mean some drastic changes for the streaming video service. Check back here for updates on Hulu.

  • Baidu Receives $50 Million To Build Video Site

    The creation of the Chinese equivalent of Hulu is now officially underway.  Providence Equity Partners, which invested $100 million in the original American video site, will give Baidu $50 million to create Qiyi.com.  Qiyi should similarly offer premium content and rely on ad revenue.

    Qiyi will indeed be a completely by-the-book operation, judging from an "About Us" section that’s in English.  It explained, "Qiyi will strictly abide by copyright laws and administrative regulations, to take copyright protection measures to protect the legitimate rights and interests of copyright holders."

    Then another paragraph later added, "Qiyi keeps making efforts . . . to spread the advanced socialism culture by undertaking its social responsibility as an outstanding corporate citizen.  Qiyi is playing a positive role in developing a harmonious society."

    Unfortunately, not a lot else is known about the project.  The site’s official launch date hasn’t been publicized, and other details (relating to advertisers’ identities, hours of content available, and so forth) are also unavailable.

    One important thing that’s been made clear, at least, is the fact that Baidu will retain majority ownership in Qiyi despite Providence’s large investment.

  • Hulu Investor May Help Launch Similar Site In China

    An investment group with significant ties to Hulu may now be ready to help a similar site launch in China.  A report’s connected Providence Equity Partners to both Baidu and a new online video destination.

    Let’s start with a little history.  Once upon a time (or in mid-2007, to be more exact), Providence Equity Partners invested $100 million in Hulu, giving it a ten percent stake that it holds to this day.  Providence Equity Partners has also established links to entertainment entities like Metro-Goldwyn-Mayer, Warner Music Group, and the Yankees Entertainment and Sports Network.

    It seems to have a knack for investing in important organizations, then.

    Which might bring us to its latest undertaking.  Reuters reported this morning that Providence Equity Partners and Baidu will "set up an online video channel in China," and that the pair "will team up to create a fund to buy licensed content to show on the channel."

    Also, "The channel . . . is set to launch in the first quarter."

    So it shouldn’t be long before more details surface and we can make guesses about whether this video site is likely to sink or float.

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