Baidu responds to iQiyi IPO rumors: inconsistent with the facts, there is no listing timetable

On December 23, in response to recent media rumors that Baidu is promoting the IPO of iQiyi, Baidu said on Weibo this afternoon: This rumor is inconsistent with the actual situation, and we have not set a listing timetable at present.

This afternoon, Baidu responded to the rumors of iQiyi's listing on its official Weibo."Recently, media reported that Baidu is promoting the IPO of iQiyi. This rumor is inconsistent with the actual situation. Baidu firmly supports the independent development of iQiyi, and iQiyi's business development continues to improve. Currently, we have not set a listing timetable. We thank all walks of life for their attention and support."

Yesterday, foreign media reported that Baidu's video website iQiyi plans to IPO in the United States or Hong Kong in 2017. It is expected to raise US$1 billion and value iQiyi about US$5 billion.

People familiar with the matter said that iQiyi also plans to raise funds through the issuance of convertible bonds before the IPO. The specific financing scale and timing are not clear.

One of the people familiar with the matter said iQiyi plans to raise about US$1 billion through an IPO. However, at present, iQiyi is still negotiating with potential investors, so the specific quantity and conditions may be adjusted.

iQiyi said at its annual marketing conference held in Shanghai in October this year that it would invest up to 10 billion yuan (approximately US$1.4 billion) in purchasing and producing content in 2017.

In the first half of this year, a consortium led by Baidu CEO Robin Li and iQiyi CEO Gong Yu (Weibo) wanted to buy iQiyi from Baidu, turning iQiyi from a company controlled by Baidu to a privately held company.

However, Baidu's major shareholder, Acacia Partners, an American hedge fund, believes that the US$2.8 billion valuation of iQiyi's privatization is too low, which violates the long-term interests of Baidu and its shareholders, and requires Robin Li to cancel the acquisition of iQiyi.

Iqiyi currently holds 80.5% of its shares by Baidu, and according to Baidu's filing with the SEC in April this year, Robin Li currently holds 15.9% of Baidu's shares.

Editor: Nancy