Tudou.com, China’s second-largest online video website, is likely to begin work on an initial public offering “fairly soon,” according to CEO Gary Wang, Bloomberg reported. Wang said the move was inevitable but refused to go into specifics. Both Tudou and market leader Youku.com require funds to invest in bandwidth to broadcast videos and copyrights for professional content that they say makes up about 70% of their sites. Analysys International, a Beijing-based research firm, said that Youku held 18% of China’s online video market in the first quarter of 2010, compared to 13% for Tudou. Anlysys noted that, although both sites offer user-generated content, they are also “purchasing film copyrights actively so as to widen the gap with other independent online video websites.” Tudou has raised US$135 million through five rounds of private equity funding, while Youku has raised US$110 million.
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