The parent company of China's third most popular website is moving into online video services.
Sina Corp., owner of infotainment portal Sina.com, has paid $66.4 million for a stake in Tudou Holdings, according to a Bloomberg report. Tudou’s website -- the nation's second largest for video -- offers a mix of movies, TV series, content produced in-house and user-generated videos.
Sina's total holding in its fellow Shanghai-based company is now 9.05 percent following the purchase of millions of American depositary receipts for Tudou's initial public offering in the U.S. this month.
Sina, engaged in an arms race to keep China's Internet users coming back to its eponymous site, is adding video, social-networking and electronic commerce services to its mix. Previously, Sina said it would plow more than $100 million to develop its Weibo microblogging service.
Nevertheless, the company said the investment and interest was primary financial. Tudou accounts for approximately 14 percent of online video advertising revenue in China.