Ku6 Acquire Pipi to Enter Video Player Market
Yesterday, Ku6 announced to buy the P2P online video website Pipi.cn. Based on the agreement signed by two parties, Pipi will sell all its stock to Ku6 in exchange for Ku6’s additional 2,212,114,257 ordinary shares to Pipi’s share holders. The transaction is expected to complete in the second quarter this year. By then, Pipi will become a wholly owned subsidiary to Ku6.
On the completion of transaction, Ku6 will become the first video media company with large-scale operations in both browser terminal and player terminal. Zhu Haifa, the acting CEO of Ku6, expressed “Pipi is one of China’s best internet television platforms. The merger with Pipi will make us the first internet television company with scale operations in both browser and video player. We believe that it will bring Ku6 more opportunities to achieve synergies and rapid development, and to expand market shares as well as quantities of users and advertising clients in the growing online video industry in China.”
Insiders analyzed that as the download service provider Xunlei and the P2P Internet television player PPLive being listed one after another, and as Baidu Qiyi promoting Qitan, a video sharing and exchanging community, the video industry may enter into a war of “channels”. Right now, there are two ways to watch video online. One is to watch through website browsers anywhere anytime, like Ku6; the other is to download a player terminal to users PC to play the video, as Pipi site does.
“Pipi and Ku6 are highly complemented. Pipi player will become a crucial supplement to Ku6’s video steam service.” a senior executive said yesterday. Pipi.cn was founded in January, 2007 by Yang Lianghai. It is an online high definition television website. Pipi player, as a special of the website, is the first VOD (video-on-demand) software to apply P2P technology in China. In March this year, the number of Pipi’s concurrent users reached its peak of 5.3 million.