In the VC panel of Paypal X China event a few days ago, we were discussing the monetization of web service with four famous VC panelists from Qiming, Gobi, RedPoint and Lightspeed. As the moderator I threw the question to four VCs: How do you think of Chinese online video-sharing market? Some are optimistic, some are a bit not. Looking back this market in 2009, a completely different story compared with several years ago when +200 similar sites co-existed.

Acquisition – the happy ending

You have to say sometime it’s better not to be the No.1. Ku6, the leading video-sharing site (but seems not as popular as Youku and Tudou) was reported its acquisition by Hurray, the subsidiary company of Shanda (Nasdaq: SNDA), the Shanghai-based leading online game development and operation company. The new company formed by the merge between Hurray and Ku6 will hold USD 160 million in cash assets and the founder and CEO of Ku6, Li Shanyou will serve as the CEO of the new company. RMB300 millions are ready for 2010, 1/3 for copyright content, 1/3 for service integration and the rest for the cost of bandwidth. I guess it is a happy ending because it is also reported that Ku6 might run out of cash before the acquisition.

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Gang Lu

Dr. Gang Lu - Founder of TechNode. He's a Blogger, a Geek, a PhD and a Speaker, with passion in Tech, Internet and R'N'R.