China Media Monitor Headlines Archives

Shanda’s online literature subsidiary Shanda Literature submitted the applications to the US Securities and Exchange Commission (SEC) on May 24 to launch an IPO. It plans to be listed on the NYSE and aims to raise US$200 million through an IPO. It would be the fourth listed subsidiary of Shanda if the IPO were to succeed. The other three are Shanda Interactive Entertainment, Shanda Game and video sharing site Ku6. Shanda Literature has purchased 7 online literature websites in previous years and has launched its proprietary e-book reader Bambook. It made RMB390 million (US$60.19 million) net revenues in 2010 but still suffered loss of RMB4.23 million (US$652,873.48) in first quarter this year.

Chinese video sharing website Ku6.com today announced its unaudited financial results for the first quarter of fiscal year 2011, noting that sequential quarterly revenue dropped slightly. Total revenues were US$6.6 million, up 178.5% from US$2.4 million in the first quarter of 2010 and down 3.0% from US$6.8 million in the fourth quarter of 2010. Net loss from continuing operations was US$10.9 million, an increase of 9.9% year-on-year and a decrease of 29.6% quarter-on-quarter. The site has also recently had troubles with labor disputes arising from its decision recently to let go of around 15% of its total staff.

Chinese video sharing website Ku6’s decision to lay off 150 sales a few days ago has been invalidated by the Beijing Human Resource and Social Security Bureau, after 6 laid off workers lodged complaints at the Bureau. The 6 people claimed that they were not informed before being laid off and violence existed during the process. Ku6 has stated that they have received notice from this department and will apply for administrative reconsideration or take more legal action to protect the company’s interests. It also indicated that it will conduct a self examination for future improvement but that will not change the decision to cut off these employees.

Chinese wireless value-added services and digital entertainment company KongZhong Corporation announced its unaudited first quarter 2011 financial results. Total revenues for the first quarter of 2011 increased 11% quarter-over-quarter to US$40.1 million. However, it suffered a net loss of US$0.46 million for the quarter. Total mobile game revenues in the quarter were US$12.27 million, a 29% increase from the same period last year but a 4% decrease from the fourth quarter of 2010. The company expects total revenues for the second quarter of 2011 to be within the range of US$41.5 million to US$42.5 million. Mobile game and online game revenues are predicted to reach US$12 million and US$10 million respectively.

China’s online video website Youku has announced the launch of its independent video search engine soku.com to provide a search service covering video content from dozens of major sites including: Youku itself, Tudou, Sina, Qiyi and CNTV. Yao Jian, Chief Technology Officer of Youku said compared to traditional search engines; Soku will provide customized video search services based on different network environments in different times and areas. In 2009, 43.8% of online video viewers searched videos via video websites and with its number increasing to 73.6% year-on-year. The increasing demand has required the industry to subdivide. In addition, video websites are actively looking for ways for video viewers to build a social networks and communicate with each other.