Baidu is considering listing video-streaming site iQiyi.com in either Hong Kong or the U.S. next year. It could raise about $1B through the IPO, sources told WSJ. Baidu (NASDAQ:BIDU) is planning to issue a convertible bond to raise funds from investors before the offering.
iQiyi is an online video platform based in Beijing, China launched on April 22, 2010. It was founded by Baidu, which is China’s largest online search engine, and Providence Equity Partners. iQiyi is currently the largest online video site in China.
Baidu purchased in 2013 the online video business of PPStream Inc. for $370 million, which became a subsidiary of iQIYI. In July 2014, the site launched its film production division, iQIYI Motion Pictures, to expand existing cooperative projects with overseas peers, including purchasing releases and co-producing movies.
Since November 2014, Xiaomi and Shunwei Capital entered into the capital by investing $300 Million for about 10 percent to 15 percent of the shares. While Baidu invested an additional $100 million and held about 80 percent.
Furthermore, in 2015 iQIYI purchased the online copyrights of eight top entertainment shows in mainland China. As well, it acquired several entertainment shows in Taiwan and South Korea. In March 2016, it announced it would launch in Taiwan.
The site had 5 million subscribers in mid-2105. In late 2015/early 2016 it had over 10 million and by June 2016, it had 20 million subscribers.
