Xiaomi has been looking at making its mark in China’s video streaming business. After announcing its partnership with Youku Tudou last week, the Chinese company has today announced that its will be investing $300 million in video-streaming platform iQiyi, Forbes reports.
iQiyi is backed by Baidu, China’s biggest search engine, and this marks the biggest investment in Xiaomi’s history. In addition to the smartphone maker, Shunwei China Internet Fund too participated in this investment round. With this investment, Xiaomi and iQiyi will work together on content and cooperate closely in Internet technology.
“Xiaomi came to us. Baidu has been our main stakeholder for a long time and we didn’t have that much need, but we had a conversation over the last four months and decided it would be good for both sides,” Gong Yu, iQiyi’s chief executive officer, told the Hollywood Reporter.
As mentioned above, this announcement comes a week after Xiaomi announced its partnership with Youku Tudou, which is China’s video streaming company. It has over 500 million users, and Alibaba too holds a 23.4 percent stake in the company.
Xiaomi has been aggressively looking at getting a foothold on China’s fast growing video streaming market. The market is expected to touch $3 billion this year, and Xiaomi wants a slice of this. In addition to selling the Mi TV, Xiaomi is also offering set-top boxes to buyers in China. The company recently announced that it would be investing as much as $1 billion in the video streaming market.