Struggling Chinese video streaming company iQiyi raised $285 million from a consortium of investors and its controlling shareholder Baidu, reports Caixin. Baidu agreed to buy 164.7 million newly issued iQiyi class B ordinary shares through a private placement, and the consortium, which includes Oasis Management, will purchase 304.7 million newly issued Class A ordinary shares, iQiyi said.
Before the deal, Baidu owned more than 52% of iQiyi’s outstanding ordinary shares and 91.6% of the voting power as of February 28, 2021.
The Nasdaq-listed video streaming platform faces unprecedented challenges. While losing users, the company is trying to maintain growth by raising membership prices and cutting costs. Meanwhile, its stock price has continued to fall in the past year.
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