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Sina Invests In Video Heavy Tudou

  • Bloomberg, Tuesday, August 30, 2011 11:43 AM
In Shanghai, Sina Corp. -- owner of China's third-most-popular Web site -- has put down $66.4 million for a stake in Tudou Holdings, Bloomberg reports. "Sina is adding video, social-networking and electronic commerce services to attract users in the world's biggest Internet market. The investment in Tudou, China's second-biggest video Website, follows Sina's acquisition of a minority stake in online apparel retailer Mecox Lane Ltd. this year."

Per the deal, Sina has acquired 1.075 million American depositary receipts at Shanghai-based Tudou's IPO in the U.S. for $31.2 million, according to a filing with the Securities and Exchanges Commission. In addition, Sina said it spent $35.2 million for another 1.49 million Tudou ADRs, after the listing -- taking its total holding to 9.05%.

Sina recently said that it planned to spend $100 million to develop its Weibo microblogging service to attract social-networking users. Tudou, Bloomberg adds, "said it plans to use proceeds from its listing to acquire video content and upgrade technology, as competition with bigger rival Youku.com intensifies."

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