Reports from China point to a $51 million investment in social network 51.com by gaming company Giant Interactive. The deal is expected to lead to an increase in gaming content on 51.com, which is popular in second- and third-tier cities.
Online video also remains popular with investors, despite regulatory issues surrounding the sector. Youku, one of the video-sharing sector’s three biggest standalone sites (alongside Tudou and 56.com), announced it had secured US$30m in private equity funding.
According to Youku CEO Victor Koo, the cash will be used to expand the company’s sales and marketing network and invest in ways to monetise the traffic on the site. It claims to deliver 150 million daily video views a day, with users spending 30 billion minutes per month on the site.
The funding round was led by US fund Maverick Capital, which takes a seat on the board. The company had previously raised $40 million in private equity funding. In addition to the $30 million cash injection, Youku has secured a $10 million equipment loan.
Youku, Tudou and 56.com have yet to be awarded operating licences by the State Administration of Radio, Film and Television (Sarft). Indeed, 56.com has been offline for nearly a month, reportedly after falling foul of Sarft over content on its site.
Last month Sarft issued 247 licences to online video sites. One of the sites involved, ku6.com, has also secured a $30 million funding round.
Separately, ku6.com agreed a deal with CCTV.com to broadcast online Olympics footage.
Chinese sites win US$100 million funding
CHINA - China's digital sector has continued to attract heavy investment, with more than US$100 million flowing into the sector in the past week.
