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22. Tudou

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Estimated Value: $300 million

Business:
The leading candidate to become the "YouTube of China."

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Location: China

More Info: About Tudou

CEO: Wang Wei

Investors:
Granite Global Ventures, IDG China, JAFCO

Analysis: China has three major video players: Tudou, Youku, and 56.com. Unlike in the U.S., there is no clearly dominant site, but Tudou appears to be the biggest.

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Digital Watch summarizes a Baidu report on video: "In the video sharing category, Tudou.com, 56.com, and Youku.com lead the market (no surprises there) with a combined market share of close to 56%. Baidu puts Tudou.com out in front, with 22.18%, followed by 56.com with 19.98% share, and then Youku.com with 13.92% share. Tudou disputes these numbers though, claiming to own half the market.

Tudou rolled out advertising in July of 2007, and the CEO says they charge a $3 CPM. Poynter says "Tudou is serving much more video than YouTube: 15 billion minutes per month, compared to YouTube's 3.5 billion. The average session at Tudou lasts 40 minutes, while at YouTube it's 15-20 minutes."

Other good news for Tudou: It's partnered with China Central Television to run a website for the Olympics this summer.

Like other video hosting and streaming companies, Tudou is likely losing buckets of money. Without market dominance or detailed revenue figures, valuation is a challenge, but we think $300 million is conservative. As many have noted, 20% of China's market already represents a big, rapidly growing user base. If Tudou can expand its share and consolidate its leadership position, the valuation will skyrocket.

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