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Baidu & Xiaomi Struck a US$300 million Deal in iQiqi Video Site

BXiaomi (now China’s biggest smartphone vendor and #3 worldwide) and Baidu (NASDAQ:BIDU) are each investing $300M in Baidu’s iQiyi video site, according to China Business Daily

Baidu, Youku, SOHU, and Tencent have been battling fiercely in a Chinese Web video market that features no dominant YouTube-like player for user-generated/short-form content, nor any dominant Netflix-like player for TV shows and movies. The market has seen huge mobile video growth: Mobile made up over 60% of Youku’s Q2 video views.

It starts to become incestuous:  Xiaomi has announced it’s taking a stake in major iQiyi rival Youku (NYSE:YOKU) by acquiring shares on the open market. Xiaomi will also license content from Youku, and “jointly invest in the production and distribution of online video content and movies.” The news comes a week after Xiaomi announced it’s investing $1B to expand its Web video content library. The company claims 85M active users for its MIUI Android UI (pre-installed on its phones).  We wonder what the Chinese Anti-trust authorities say about this?

Source:  Owler.com

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