After an initial investment of RMB 500 million, iQiyi brings the total investment to 850 million RMB
iQiyi Sports, iQiyi’s online sports platform, completed the Series A round of financing, increasing the total investment guaranteed by RMB 350 million, which now reaches RMB 850 million.
Previously, iQiyi had already collected 500 million RMB in the initial tranche completed early July. After the completion of this round, the estimated valuation of iQiyi Sports has reached 3.35 billion RMB.
iQiyi has long been the protagonist of sports entertainment in China. This sector, given iQiyi’s good incursion into the market, is now a future goal of the company. iQiyi has announced that it will continue to support the growth of its sports sector and, moreover, plans to invest more resources in its sports content, such as IP and services.
iQiyi Sports stems from the joint venture between iQiyi and Super Sports Media
Wanting to conquer the market is iQiyi Sports, the joint venture between iQiyi and Super Sports Media. Since August, when the agreement between the two companies has been ratified, the Super Sports Media app has changed its name to “iQiyi Sports” – a move made to bring together broadcast rights and expand sports coverage.
Immediately after its establishment, iQiyi Sports raised RMB 400 million from venture capital firm IDG Capital, in exchange for a 13.33% stake.
Yu Lingxiao, CEO of iQiyi Sports, said: “The combination of iQiyi’s advanced technological capabilities and vast numbers of subscribing members with Super Sports Media’s many years of experience in pay-per-view sports entertainment creates a partnership of unprecedented strength in the industry”.
The growing popularity of online streaming is changing the habits of fans
An important factor in iQiyi’s decision was certainly the change in Chinese customs. The growing popularity of online streaming, in fact, is changing the habits of sports fans and the panorama of sports broadcasting services in China.
Tencent Sports, for example, has signed a five-year agreement with the NBA, and PPTV has spent nearly $ 2 billion on the broadcasting rights of international soccer competitions.
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