China's Xiaomi to buy stake in online video company Youku Tudou

[BEIJING] Chinese video streaming firm Youku Tudou Inc said on Wednesday Xiaomi Technology Co Ltd will acquire a stake in the online video host.

Youku Tudou did not specify how large the smartphone maker's stake would be or how much would be invested. It said the transaction would take place on the open market.

Youku Tudou and Xiaomi will also jointly invest in the production and distribution of online video content and films, while Xiaomi will license Youku Tudou's video content, Youku Tudou said in a statement.

Xiaomi said last week it would invest US$1 billion to expand its internet TV content, as the world's third-largest smartphone maker ramps up its push into the living room.

REUTERS