Baidu's iQiyi announces $2.4bn New York IPO

By BizClik Admin

Baidu’s video-streaming service, iQiyi, has announced a $2.4bn IPO.

The firm announced that it will hold an initial public offering in New York, on the Nasdaq, which will reach up to $2.4bn if all shares are sold.

The company will offer 125mn shares worth between $17-19 each.

It also has the option to sell an additional 18.75mn shares, which could potentially bring the full value of the IPO up to $2.7bn.

See also:

Baidu to feature more Netflix shows on iQiyi platform

Business Chief – Asia edition, March issue out now!

Baidu sees AI investment pay off

Baidu currently owns 69.6% of iQiyi and will remain the majority shareholder.

iQiyi currently has about 60.1mn subscribers, over 98% of whom pay to use the service, and boasts a 2017 revenue of $2.7bn. This marks a 55% year-on-year increase.

The Beijing-based answer to Netflix was founded in 2010 and claims that users spend about 6bn hours on it every month. It has around 500mn monthly active users.

The firm hopes to use part of its funding to expand its content range. Earlier this year, iQiyi opted to expand its offering by featuring some Netflix-produced content on the platform. This was announced in January by Baidu’s president, Zhang Yaqin, who promised more “exciting” agreements to come. Popular Netflix-produced shows iQiyi considered were Black Mirror and Stranger Things.

In addition, 10% of the funds will be used to strengthen the company’s technology.


Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia


Huawei smartwatch goes for gold with Ultimate Edition


How IKEA India plans to double business, triple headcount

Corporate Finance