Baidu announces acquisition of video site PPS

(CCTV)

Chinese web service company Baidu announced the acquisition of video website PPS Tuesday at a price of 370 billion US dollars.

PPS will be run as a sub-brand of Baidu’s video service provider iQIYI, which will be the largest video website in China.

Baidu will offer PPS not only traffic support but also funds for purchasing more video copyrights.

“We will lead in market share of personal computer clients, website as well as mobile devices after the merger. We will also have the longest length of visit in Chinese video websites,” said Xu Fengwei, president of PPS.

According to reports, PPS has advantages in mobile internet, with the largest downloads by iPhone and the third largest downloads by iPad.

“We have larger market share after the acquisition. Besides, since PPS has different advantages with iQIYI, it will bring us more advertising revenue, more users, and expand the potential of charging fees,” said Gong Yu, CEO of iQIYI.

Youku announced the acquisition of Tudoo, becoming a big player of the industry last year.

Many insiders believe the video industry will have another round of mergers and form an oligarchic competitive landscape. Small players will experience hardships.

“There will be many video operators in the industry in the future, but only a handful of players will dominate the market. The small players will not continue unless they have unique advantages. A few large video websites will be co-existent,” said Gong.

(Copyright 2013 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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