Xiaomi stake in IQiyi pegs site's value at up to $3bn, sources say

A US$300 million investment by smartphone maker Xiaomi and Shunwei Capital for about 10-15% of Baidu’s (BIDU.NYSE) IQiyi.com values the video website at US$2-3 billion, Bloomberg reported, citing unnamed sources. Baidu will invest an additional US$100 million and hold about 80% of the site, according to people familiar with the matter. Baidu, Xiaomi and IQiyi will jointly develop content and technology products, especially for mobile Internet, according to an e-mailed statement that announced the US$300 million investment. Xiaomi Chief Executive Officer and Shunwei Capital Chairman Lei Jun has branched out into tablet computers, Internet-ready TVs and set-top boxes, and has pledged to invest at least US$1 billion in content.