Temasek Holdings will invest US$35 million in Tudou, China’s second-largest online video company, in the Singapore’s state investment company’s first foray into the Chinese internet sector, the Financial Times reported. Tudou said that, including Temasek’s investment, it has raised US$50 million in its latest round of equity financing. The funds will be used to prepare for an expected boost in mobile video consumption, and to also counter new competitors – such as Baidu (BIDU.NASDAQ) and Tencent (0700.HK) – in an already fragmented market, Tudou’s chief executive Gary Wang said. The company’s most immediate focus is to strengthen its infrastructure in order to bolster its presence on tablet PCs and other mobile devices. It also wants to transform itself from a video distribution platform into a full media company. Tudou held a 12.8% share of China’s US$46.3 million online video market in terms of advertising revenues in the first quarter.
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