iQiyi: 'China's Netflix filed to be Listed on US Stock Market
By Faith Magbanua, February 28, 2018 23:02 PM
Owned by online giant Baidu, Chinese streaming site iQiyi is planning to achieve a $1.5bn (£1.1bn) sum through an initial public offering on the Nasdaq.
With more than 50 million subscribers by the end of 2017, iQiyi had an average of more than 420 million mobile users per month, as reported by news sources.
The streaming site, originally known as Qiyi, is an online video platform based in Beijing, China and was launched on April 22, 2010.
However, while the revenues have risen in recent years, iQiyi has never posted a profit since it launched a few years ago.
In China, it contests with a list of streaming platforms like Youku Tudou, which is owned by Alibaba, and Tencent Video.
In April 2017, iQiyi has signed a licensing agreement with Netflix to stream some of the US provider's original content including Stranger Things and Black Mirror.
iQiyi posted a net loss of 3.7bn yuan (£425m; $592m) for 2017 compared with 3.1bn yuan the previous year, though revenue jumped by 55% to 17.4bn yuan.
Baidu, which founded the business as Qiyi before later changing its name to iQiyi, is itself listed in the US.
The Beijing-based company has posted losses since its inception in 2010, and reported a net loss of 3.74 billion yuan ($592 million) for 2017, compared with 3.07 billion yuan a year earlier.
Revenue, however, rose to 17.38 billion yuan from 11.24 billion yuan.
Goldman Sachs (Asia) LLC, Credit Suisse and BofA Merrill Lynch are among the lead underwriters to the IPO.
The amount of money a company says it plans to raise in its first IPO filing is usually a temporary placeholder.
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