Xunlei Prepares for Second IPO Attempt
DoNews, 1/12/12
Billy Wang, CMO of Chinese online P2P video service provider, download accelerator software developer, and online game operator Xunlei, said today that the company had completed IPO preparations.
2011, when Xunlei had originally planned to list, was a grim year for China stocks, Wang said. While Xunlei has been a healthily profitable company for the past three years, its IPO plans had depended on whether or not it would be able to list at a favorable price and in a favorable environment. After its abortive first IPO attempt, Wang said, Xunlei is now ready to list.
Xunlei currently has an 89% share of the P2P download market, with nearly 200 mln users per day and a total of roughly 400 mln users, with nearly 2 mln new client installations per day and 2.75 mln paying users, including users of Xunlei's Kankan P2P video service.
Wang said that Xunlei would benefit from the development of mobile internet services, which it expects will bring in more - and more mature - users. The company predicts that it will grow to 1 bln users over the coming two to three years.
Although Xunlei only offers about 200 of the 400 films that see theatrical release in China each year, viewers don't use the service solely for theatrical releases, Wang said, adding that the internet could offer filmmakers additional channels for release and for positive development.
The company's focus for 2012 will be on HD, while content will continue to be mainly films. In addition to forming strategic partnerships with theatre chains, Xunlei will work to develop cloud-based video technologies.
Editor's Note: For more information on this topic, please see "Xunlei Postpones IPO," MD 7/22/11 and "Xunlei Files for Nasdaq IPO," MD 6/08/11 issues.
Keywords: Billy Wang online video content Internet IPO users Xunlei Kankan P2P online gaming
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