Thanks To Facebook, $430 Millions Into Oak Pacific’s Xiaonei.com

Microsoft bought 1.6 percent stake of Facebook for $240 millions, which valued Facebook at $15 billion. It has just been confirmed that Xiaonei.com, the Chinese clone of Facebook owned by Oak Pacific Interactive (OPI) sold its approximately 35% share to Softbank for $430 millions, which values OPI at over $1 billion.

So the Chinese social networks market is fueled. However, if we take a look at another side of this story, it is more interesting. Softbank has held roughly 30% stake of Chinese super star Alibaba.com, the deal with OPI is a further step into the fast growing Chinese Internet market; and Mixi, the No.1 Japanese SNS is planning to launch a subsidiary in Shanghai by the end of May. Japanese Internet is expanding, as Japantimes reported:

The global foray by Japanese Internet service companies makes sense as “they are expected to further grow their business among investors,” said Noritaka Kobayashi, a senior consultant at Nomura Research Institute. “If they continue to do business only at home, it’s obvious that their business cannot grow at a quick pace.”

May 1, 2008 · Filed Under China Web2, Venture Capital

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Tudou’s 3-Year Birthday Gift, $57 Millions Forth Round Fund Confirmed

The rumor about Tudou, the leading Chinese video-sharing site’s forth round fund is confirmed today. $53 $57 millions, the 3-year birthday gift is from IDG, GeneralCatalyst, GGV and Rockefeller family.

“The money will be used mainly for the company’s management and operation, bandwidth-consuming and revenue-sharing with video producers (the third parties and individuals are expected to have 10%-30% revenue share)”, said Zhiqi Wang, CFO of Tudou.

Gary Wang, founder and CEO of Tudou also said that Tudou was ready to start paying off the investment in 2008. Gary is confident with Tudou’s business model but he also said that it was still too early for IPO.

It was also reported that other two popular video-sharing sites, 56.com and Youku.com might announce their new round fund very soon. If the rumor is confirmed ($25 millions for 56.com and $30 millions for Youku.com), the total amount of money into Chinese online video industry will reach $100 millions within only a month.

[via ChinaVenture.com.cn]

April 29, 2008 · Filed Under China Web2, Venture Capital