Xiaomi to buy Youku Tudou stake

Xiaomi, China’s largest smartphone vendor, is set to acquire Youku Tudou shares on the open market and also license content from China’s most popular video-streaming site. Joy Han, a spokeswoman for Xiaomi, and Jay Chen, a Youku Tudou spokesman, both declined to comment on the amount of the investment.

Lei Jun, Xiaomi’s chief executive officer, has pledged to initially invest $1 billion in content to help sales of its Mi Box, a set-top box to receive videos, and its Mi TV Internet-ready television set. Chen Tong, a former editor-in-chief of Sina’s website who was hired last week, will spearhead the thrust into TV and video content with Xiaomi co-founder Wang Chuan, according to a statement from the two companies.

Youku Tudou and Beijing-based company Xiaomi will jointly develop content and technology. The cooperation will include investing in online video and movie production.

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