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Baidu to receive USD50m investment from Providence Equity Partners

Baidu, a Chinese language internet search provider, is to receive a USD50m investment from private equity firm Providence Equity Partners for its new online video company.

The funds will be used to develop an advertising supported online video business providing premium licensed content in China.

Baidu will continue to maintain majority ownership in the company.

"The online video market has great potential for growth in China," says Robin Li, chief executive officer of Baidu. "Providence is our ideal partner in this space as it has rich experience in investing in and managing businesses that distribute licensed content online. With Baidu’s strong ability to drive traffic and offer innovative products that suit user needs, we are very excited about the future prospects of this new company."

"We are very pleased to partner with Baidu and are confident that this new venture will become an industry leader," adds Jonathan Nelson, chief executive officer of Providence. "As the world’s largest Chinese language internet search company and also the dominant video search engine in China, Baidu has unmatched competitive advantages in its user base and traffic. The new venture will provide users with a first-class viewing experience, and will work with regulators to ensure the lawful distribution of professionally produced media and entertainment content on the internet."

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