A war between two of China’s leading web operators is playing out on the Nasdaq through two of its main video sites.
Tudou, which raised $174 million when it floated in New York last week, has now seen about four percent of its equity bought by the Sina (NSDQ: SINA) portal by up to $40 million, according to multiple reports including Reuters‘.
“Perhaps, Sina has felt pressure to react to rumours that Tencent has its eyes set upon the leading video site, Youku,” Technode speculates. “It is believed that Tudou will remain independent but it is speculated that Tudou will eventually operate Sina’s video platform since video makes up a small portion of Sina’s business.”
For Sina and Tencent, video is the next big online product to join their line-ups after social their Weibo microblog services.
In December, Sina said video was its main investment area and disclosed concerns over its position, pointing to competition from the likes of Youku and Tudou…