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Chinese video website Tudou expects strong growth

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CIOL Bureau
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TIANJIN, CHINA: Chinese online video-sharing website Tudou, which aims to list on the Nasdaq, predicts China's online video market, measured by advertising revenue, will double or even triple next year, its chief executive told Reuters.

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"It all depends on whether major sponsors allocate a bigger budget to online video sites. I think the market can double or triple next year," Gary Wang said in an interview.

The size of China's online video market stood at around $147.7 million, said Wang, who founded Tudou in 2005.

Wang told Reuters in December last year that the company hoped to list on the Nasdaq in the next three years.

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Asked about the progress of its IPO plan, Wang said: "This will depend on market conditions, in any case, the company is growing nicely."

Last month, Tudou received a $35 million investment from Singapore state investment company Temasek Holdings. The $35 million investment was part of a $50 million fundraising by the Chinese company.

"They are very thorough," Wang, who described his company as "a combination of Youtube and Hulu", said of Temasek's investment.

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"We have always been a start-up. Through this partnership, (Temasek) could help us improve our financial management and many other things," he said on the sidelines of the World Economic Forum in northern Chinese port city of Tianjin.

Tudou, which means potato in Mandarin and alludes to the image of an Internet couch potato, allows Internet users to share video files over the Web.

The company would focus on expanding content and its mobile video business after the latest round of fundraising, Wang said.

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