Beijing Xiaomi Technology Co Ltd, the privately owned Chinese electronics company, is to invest $300 million (S$63 million) in Baidu's online video website IQiyi.com, according to China Business News.
It is the first time that IQiyi.com has invited a heavyweight partner to become a shareholder, and is considered Xiaomi's biggest investment in four years.
Baidu, meanwhile, has increased its total investment in the video website by the same amount of money.
Considered the world's third largest smartphone maker, Beijing Xiaomi will buy the shares of Youku Tudou Inc on the secondary market, said CBN. The investment will be officially announced by the company in the near future, according to the newspaper.
Since IQiyi.com and Youku Tudou have already got the license for Internet TV, granted by the State Administration of Press, Publication, Radio, Film and Television, becoming a shareholder of the two companies will make obtaining rich video resources and an Internet TV license a one-step process for Beijing Xiaomi, said the report.
On Nov 4, Reuters reported that Xiaomi Technology planned to spend $1 billion to expand its Internet TV content. Its burgeoning TV unit includes its Xiaomi TV as well as a set-top box, which both use its software and content. The company is best known for its budget smartphones and tablets that have won it customers worldwide.