Stake in video streaming firm to accelerate Xiaomi’s development of multi-screen media and entertainment ecosystem.
Xiaomi Technology will acquire a stake in Chinese video streaming firm Youku Tudou, accelerating Xiaomi’s development of multi-screen media and entertainment ecosystem.
The deal also involves licensing content from Youku Tudou in addition to joint investments in production and distribution of online video content and movies.
Youku Tudou chairman and CEO Victor Koo said: "Both Youku Tudou and Xiaomi have been pioneering multi-screen ecosystem development in the mobile internet era. With the new partnership, we’ll leverage our respective capabilities to strengthen our ecosystems and to enhance user experience.
"Both Youku Tudou and Xiaomi have had initial success in developing intellectual properties and building fan economy for future revenue growth.
"We will work closely to unlock further opportunities in this area going forward."
The latest move comes a week after Xiaomi revealed plans to invest around $1bn to improve its Internet TV content.
However, Chinese e-commerce major Alibaba Group already owns around a quarter of Youku Tudou.
Xiaomi VP and co-founder Wang Chuan said: "Youku Tudou has been a leading force in original content production among Internetcompanies, and Youku Tudou’s user base and Xiaomi’s fan community are closely associated.
"’The partnership will bring the development of the Internet industry in China to the next level."