Youku, Tudou race toward IPO in US
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China's largest online video website, Youku, is racing with arch rival Tudou to float shares in the United States as severe competition requires more spending on patented content and Internet bandwidth.
Beijing-based Youku yesterday filed the application for an initial public offering on the New York Stock Exchange to raise as much as US$150 million, a larger amount than Tudou's US$120 million NASDAQ IPO, which was filed last Thursday.
Youku has raised US$160 million of venture capital in six rounds of funding from institutions including Bain Capital and Sutter Hill Ventures.
Goldman Sachs Group will be the main underwriter of the deal.
Youku's founder and CEO Victor Koo owns around 41.5 percent of the stake before listing.
Last year, Youku made a loss of US$26.7 million on sales of US$22.5 million.
Similar to Tudou, Youku will use the proceeds to upgrade technology, product innovation, replenish its operational capital as well as for sales and marketing.
Youku had about 18 percent of the online video market in China by the end of the third quarter ahead of Tudou's 13 percent, research firm Analysys International said.
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