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iQiyi: 'China's Netflix' shares dip in US stock debut | iQiyi: 'China's Netflix' shares dip in US stock debut |
(about 3 hours later) | |
Chinese video streaming service iQiyi - often called China's Netflix - made a rocky US stock market debut as it launched on the Nasdaq. | Chinese video streaming service iQiyi - often called China's Netflix - made a rocky US stock market debut as it launched on the Nasdaq. |
Shares opened slightly ahead of the $18 listing price, before quickly falling back and closing down 14%. | Shares opened slightly ahead of the $18 listing price, before quickly falling back and closing down 14%. |
But iQiyi chief executive Gong Yu said he was not concerned about the "short term volatility". | But iQiyi chief executive Gong Yu said he was not concerned about the "short term volatility". |
The firm, controlled by Chinese internet giant Baidu, raised more than $2.2bn (£1.6bn) in the listing. | |
The initial public offering (IPO) gave the streaming service a valuation of about $12.7bn. | The initial public offering (IPO) gave the streaming service a valuation of about $12.7bn. |
Despite the initial stock price fall, Mr Gong was confident about the firm's future prospects. | Despite the initial stock price fall, Mr Gong was confident about the firm's future prospects. |
"Long term, you'll see how much value the IPO creates," he told the Reuters news agency. | "Long term, you'll see how much value the IPO creates," he told the Reuters news agency. |
Not profitable | Not profitable |
iQiYi had more than 50 million subscribers by the end of 2017 and an average of more than 420 million mobile users per month, according to Reuters. | iQiYi had more than 50 million subscribers by the end of 2017 and an average of more than 420 million mobile users per month, according to Reuters. |
But while revenues have risen in recent years, iQiyi has never posted a profit since it launched in 2010. | But while revenues have risen in recent years, iQiyi has never posted a profit since it launched in 2010. |
You might also like: | You might also like: |
In China, it competes with fellow streaming platforms Youku Tudou, which is owned by Alibaba, and Tencent Video. | In China, it competes with fellow streaming platforms Youku Tudou, which is owned by Alibaba, and Tencent Video. |
In April 2017, iQiyi signed a licensing agreement with Netflix to stream some of the US provider's original content including Stranger Things and Black Mirror. | In April 2017, iQiyi signed a licensing agreement with Netflix to stream some of the US provider's original content including Stranger Things and Black Mirror. |
Last year, iQiyi posted a net loss of 3.7bn yuan (£425m; $592m) compared with 3.1bn yuan in 2016, though revenue jumped by 55% to 17.4bn yuan. | Last year, iQiyi posted a net loss of 3.7bn yuan (£425m; $592m) compared with 3.1bn yuan in 2016, though revenue jumped by 55% to 17.4bn yuan. |
Baidu, which founded the business as Qiyi before later changing its name to iQiyi, is itself listed in the US. | Baidu, which founded the business as Qiyi before later changing its name to iQiyi, is itself listed in the US. |