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Chinese search giant Baidu is sticking to its plan of disintegrating the most valued services of the search platform, into singular independent identities. Treading along the same lines, Baidu Video is now a separate identity among other Baidu products, and has raised a hefty sum of 1 billion yuan( $155 million).

Maybridge Consulting reports that the massive funding has been led by two main partners, New Culture Media Group and venture capital firm SAIF. Each Venture Partner will invest 500 million yuan($70 million each) into the Baidu Video business, which currently has over 300 million mobile viewers.

The Chinese Search giant, Baidu is taking strong measures to separate its loss making identities into independent businesses, to convert them as well as the parent company into a profitable one. Reports suggest that the new Baidu Video service will operate separately from Baidu’s other video platform, iQIYI, which is one of China’s leading video platforms, alongside Youku Tudou( in process of acquisition by AliBaba). iQIYI is a more traditional online service similar to YouTube, while Baidu Video will serve as a video search and aggregation service(will also include curated video content from LeTV’s entertainment platform).

Hu Hao, the former general manager of Baidu video division is said to take over the position of CEO of the company.

A spokesperson of [Baidu] says that,

Baidu Video aims to become the number one professional generated content video platform in China. [Baidu Video] will focus on platform development and continue to provide our audiences with video search and content aggregation services.

The reorganization of the company has had a positive effect on Baidu’s market share, helping fuel a nearly 40% jump in Baidu’s stock since a recent low in February. This new Baidu Video will compete with AliBaba owned, Youko Tudou, where the two services have a cut-throat competition in the most populated country in the world, China.

If you view everything under a microscope, then you’ll realize that Baidu has taken a very bold and important step towards a better valuation and future of the company[as also suggested by Investors]. Now all that left’s to see, whether this break-up plan will work in favor of Baidu Video or not.

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