By Mudit Mohilay, The Tech Portal
Baidu may be planning an initial public offering of its video streaming website, iQiyi.com. The news comes from the Wall Street Journal, that has been citing people close to the deal as the main source of its information. The deal will allow the Chinese giant to raise additional funds, although no word on the schedule of such an IPO could be obtained.
In case you are unaware of it, iQiyi is an online video platform that operates out of Beijing, China. It was launched back in April 22, 2010 and has since then, grown to become the largest online video site in China. It was initially founded by Baidu and Providence Equity Partners. Baidu later bought Providence’s stakes in the company making it all its own.
However, the company has since then changed equity ownership multiple times, with Baidu remaining the majority stakeholder.
Along with purchasing rights to popular franchises such as Transformers, iQiyi also creates original shows of its own and then distributes and markets them in mainland China. The service had over 20 million subscribers as of June, 2016 and is the most popular service in its category in China.
Baidu could list iQiyi in stock exchanges in either Hong Kong or in the United States. The company is expected to raise somewhere around $1 Billion from this IPO.