China-based video streaming platform Youku Tudou has invested in five domestic startups as part of a corporate rebranding exercise that will involve it shifting to an original content model, Technode reported yesterday.
The investments will form part of a massive funding push that will involve Youku Tudou providing “tens of billions of renminbi” in the form of corporate venturing investments over the next three years (RMB 1 = $0.16) in order to create a culture and entertainment ecosystem.
Youku’s revenue currently relies on adverts displayed during videos, but the company made a first step towards becoming a full-fledged media provider in August 2014 when it set up a film division dubbed Heyi Film. It now plans to rebrand under the Heyi Group name.
The largest of the company’s first five deals under the initiative was a $50m investment in animated video portal AcFun, according to Tencent Tech. AcFun’s site displays live comments alongside online video content, with anime, comic and game-themed videos a particular focus.
Mobile gaming community platform and game distributor Joyme received an undisclosed amount in series C funding from Youku, which invested alongside mobile game producer Ourpalm.
Joyme raised $21.5m in February 2014 from Fosun Venture Capital Investment, the corporate venturing unit of conglomerate Fosun Group, and venture capital firm BlueRun Ventures. Bluerun had previously supplied an undisclosed amount of series A funding for Joyme.
Marketing agency Jiae.com meanwhile raised an undisclosed sum from Youku Tudou and VC firm Morningside Ventures. Jiae will assist Youku in producing complementary products to its online content.
The other companies to receive funding were online motion picture training course provider Rongyi Education, which will help Youku Tudou foster music, gaming and animation talent, and youth-oriented, knowledge-based networking community Logical Thinking.
Youku Tudou raised $1.2bn from e-commerce group Alibaba and private equity firm Yunfeng Capital in April 2014, four years after it went public in a $202m initial public offering. Its market cap currently stands at about $3.85bn.