Rumor went around last month that Baidu was in talks with PPStream (PPS) on a potential acquisition. In the past week local media were told by sources that iQiyi, Baidu’s online video service would merge PPS, a peer-to-peer streaming video software, with about $350m to $400m (in Chinese). After the merger, iQiyi and PPS will go dual-branded accordingly.
Back in 2010 when most video site players were burning cash struggling in that crowd, PPS had already announced revenues and even planned for an IPO. In 2011, PPS started to cooperate with game and e-comm players on joint operation, and membership points incentives. Currently game service has grown bgigger in PPS, which contributed 200m to 300m yuan annual revenues to the company.
PPS raised three rounds of funding, US$1 mn from Ceyuan in 2005; US$10 mn from Ceyuan and Qiming Ventures in 2007; US$20m from LB, Ceyuan and Qiming Ventures. And in 2011, PCCW bought US$28.6409 mn worth of shares
Some investors assumed that PPS missed the best timing for IPO after it won $100m funding in the D round, “For PPS, maybe IPO can still be realized by going with other companies. iQiyi hasn’t gone IPO, but Baidu has that plan. ”