IQiyi Sports, the sports arm of iQiyi — one of China’s emerging online video platforms — announced it has received strategic financing totalling 500 million yuan (US$73.19 million) from IDG Capital and Huiying Borun, The Paper reported.
Among them, IDG Capital subscribed for a 13.33% stake in Xinai Sports for 400 million yuan, and Huiying Borun subscribed for 3.33% of Xinai Sports for 100 million yuan.
Xinai Sports is the operator of the iQiyi Sports platform. It is a joint venture recently co-founded by iQiyi and Xinying Sports.
“The 500 million financing is only the beginning. There are still many investment institutions interested in iQiyi Sports that are in contact with us,” said Yu Lingxiao, the CEO of both Xinying Sports and Xinai Sports.
It is reported that the Chinese Culture Group will also invest 300 million yuan to become the A-round shareholder of iQiyi Sports, though both parties declined to comment.
IQiyi Sports will enjoy the copyright resources of sports events owned by Xinying Sports and iQiyi. While iQiyi, which holds the advantage of having a higher number of users, will provide traffic and advertising support for the new platform.