Tudou Files Nasdaq IPO for Fourth Time
SEC, 7/08/11
Chinese online video site operator Tudou Holdings Limited has filed an amended IPO with the US Securities and Exchange Commission (SEC) stating that founder, chairman, and CEO Gary Wei Wang has agreed to pay his ex-wife, Yang Lei, out of his personal assets a cash amount before June 2012 and an additional cash amount in the event of an IPO, merger, acquisition, reorganization or a similar transaction within two years of such an event.
Yang, who holds 95% of the equity interests in variable interest entity (VIE) Quan Toodou Network Science and Technology Co., Ltd., recently initiated a lawsuit against Wang, seeking the division of 76% of the equity interest in Quan Toodou held by Wang. Historically almost 100% of Tudou's net revenues and approximately 60% to 70% of costs were attributable to Quan Toodou, and Tudou relies on Quan Toodou to hold and maintain the licenses necessary to operate its website as well as online advertising and value-added telecommunications services in China.
The latest amendment states that from the Tudou's inception until June 30, 2011, the company had been subject to 587 copyright infringement cases in the PRC, 364 of which had been concluded and the remaining 223 cases were ongoing, compared to 541 copyright infringement cases with 349 concluded and 192 ongoing as of June 8, 2011. Among the concluded cases to date, Tudou has lost 182 cases, won 16 cases, settled 79 cases and 87 cases had been withdrawn by plaintiffs, compared to 170 cases with 16 cases won, 77 cases settled, and 86 cases withdrawn as of June 8. Damages in lost cases ranged from RMB 1,000 to RMB 50,000.
Editor's Note: For more information on this topic, please see "Tudou Refiles IPO, CEO Settles Divorce Lawsuit," MD 6/17/11 issue.
Keywords: Internet IPO online video Tudou Yang Lei law TUDO Gary Wang litigation
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