Tech in Asia: China's iQIYI Announces Closing of $500M Private Placement to PAG
Launched in April 2010, iQIYI is an innovative online entertainment and streaming platform that is backed by Baidu. Often touted as the Netflix of China, the company is known for its high standards for quality, as well as its youthful and stylish branding. Earlier this week, iQIYI closed a private placement of USD 500 million in the form of secured convertible senior notes, to a subsidiary of an APAC-focused alternative investment firm named PAG.
"PAG sees value where value is," said Mr. Yu Gong, Founder, Director and Chief
Executive Officer of iQIYI. "As a leading private equity investor, PAG
recognizes and appreciates iQIYI's market leadership position and growth
potential. We are excited about the partnership with PAG and look forward to
growing the Company together."
The deal is part of the firm's efforts to affirm its position as the leading online entertainment video service. After all, iQIYI focuses on long-form content and is a direct competitor with Youku Tudou from Alibaba and Tencent Video. Moreover, this also follows the newly forged partnership between iQIYI and Douyin that would allow clips from the former’s shows to be uploaded as short-form videos on the latter’s platform. In the 3rd quarter of 2022 alone, iQIYI reported a net operating income of $43.5 million.
Source: IQiyi closes $500m debt offering deal with PAG
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