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Andre R. Scott (D01495990) Advanced Managerial Finance – Sept 2013 - FI516 IPO Paper – Week 5 – 10/06/2013 Teacher: Miriam Benard COMPANY AND INDUSTRY
Company
I choose this company for two reasons; the world of information technology is huge and growing steadily. Google, Yahoo, and YouTube are hugely popular sites, and youku is a site that is similar to YouTube and delivers great possibilities for the Asian community. Youku.com, Inc. went public on December 8, 2010. This company is in the business of delivering video content over the internet. Their business model consists primarily of deriving advertising revenue as the result of viewer activity over their system. They license content and provide it for viewer use. There is no viewer fee for the service. Youku bills itself as the “leading internet television company in China.” Their mission is to become the primary source of video content for the Chinese population across any Internet-enabled device. The overall offering is somewhat like what we know as You Tube. According to iResearch, Youku has appx. 40% of the marketshare of total user time spent viewing video content online in China. Its nearest competitors have appx. 23% and 14% respectively.
According to the company’s registration filing, their assessment of their strengths and opportunities is as follows:
Our Competitive Strengths
We believe that the following strengths contribute to our success and differentiate us from our competitors: |  | | leading Internet television company in China with strong brand recognition; |

|  | | large and comprehensive video content library tailored to Chinese users; |

|  | | substantial investments in infrastructure, know-how and products and services to deliver a superior user experience; |

|  | | differentiated sales proposition attracting mainstream brand…...

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