Chinese search giant Baidu announced today that its online video unit Baidu Video is going to run its business independently. Hu Hao, former manager of Baidu’s video business department, has been appointed as CEO of the new subsidiary.

Along with the news, the new company is completing a 1 billion RMB ($USD155 million) investment led by New Culture Media with participation of Zeus Entertainment and SAIF Partners. The investors will not only bring capital support, but also open up their IP and operation resources to the new spinoff, the company said in a statement.

As the first major move following the spin-off, Baidu Video launched a 500 million RMB investment program earmarked for professionally generated content (PGC) development as the production model of Chinese video sharing sites swings form user-generated content to professionally generated content. The capital will go towards supporting high-quality professional content and production teams, the company added.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.