xiaomi-logo.jpg (Photo : www.en.miui.com)
Xiaomi, the world's third largest smartphone maker, confirmed its $300-million investment in iQiyi, a subsidiary of Chinese search engine giant Baidu and China's leader in the online video industry.
Both companies said that they will take advantage of their massive user bases to collaborate in improving and innovating products, technology and content in the mobile Internet industry.
Chinese capital investment firm Shunwei Fund participated in the investment deal, while Baidu also upped its iQiyi investment to "several hundred million dollars."
International Analysys researcher Luo Lan said that the deal will help Xiaomi's expansion on its content, while iQiyi's user base is expected to increase.
The online video site currently has more than 450 million users, with 60 percent of the traffic coming from mobile devices such as tablets or smartphones.
Content from the leading video website will be used by Xiaomi on its mobile devices and smart TV units.
Xiaomi announced the move earlier this month together with plans of investing in another Internet video website, Youku Tudou Inc., which is iQiyi's direct competitor.
This was followed by another plan of the Chinese smartphone giant to invest $1 billion to expand its content on the Internet TV business. Chen Tong, a former editor-in-chief from Sina.com, was appointed vice president of investment and operations for the endeavor.
The smartphone manufacturer also announced that it will be raising around $1.5 billion for investments during its fifth round of financing.
