Xiaomi has invested US$300 million for a stake in online video website IQiyi.com, amid efforts to expand its internet TV content and days after it is said to be raising US$1.5 billion in a new round of funding.
The Beijing-based smartphone manufacturer is the first major partner to become a shareholder in the video site owned by Chinese search giant Baidu, which has also topped up its investment to match the latest amount, reported local newspaper China Business Network.
It added that Xiaomi is further expanding its stake in the market by purchasing shares of another video website, Youku Tudou, on the secondary market. The two video sites already hold internet TV licenses from Chinese authorities.
Xiaomi last month said it was investing up to US$1 billion to expand its internet TV offerings, adding to its current portfolio which already includes the Mi TV and Mi Box set-top box. Its focus in the sector would pit the Beijing-based company against its local peers that have invested in the online TV market, including Alibaba, Tencent, and Baidu.
Earlier this week, the Chinese handset maker reportedly was targeting to raise US$1.5 billion in its fifth round of funding, the bulk of which would go toward developing video content for Xiaomi TV.