tech2 News StaffNov 12, 2014 17:23:27 IST
Chinese video streaming firm Youku Tudou said on Wednesday that Xiaomi will acquire a stake in the online video host.
Youku Tudou did not specify how large the smartphone maker's stake would be or how much would be invested. It said the transaction would take place on the open market.
Youku Tudou and Xiaomi will also jointly invest in the production and distribution of online video content and films, while Xiaomi will license Youku Tudou's video content, Youku Tudou said in a statement.
Xiaomi said last week it would invest $1 billion to expand its internet TV content, as the world's third-largest smartphone maker ramps up its push into the living room. The company's burgeoning TV unit includes its Xiaomi TV as well as a set-top box, which both use the MIUI software and content. The company is best known for its budget smartphones and tablets that have won it legions of fans worldwide.
Xiaomi’s expansion of its internet TV business pits it against local internet companies including Alibaba, Tencent and Baidu all of which have recently increased their investment into internet TV, a market Chinese consultancy iResearch says is estimated to be worth $3 billion in 2014.
Reports suggest that Xiaomi has teamed up with China-based IC design company Leadcore Technology to form a joint venture and develop 4G chip solutions. According to the sources in the Taiwan handset supply chain, Xiaomi will hold a 51% stake in the joint venture whereas Leadcore Technology will have a 49% stake.
With inputs from Reuters
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