China’s Tudou.com Reinvigorates IPO Plans As CEO Settles Marital Dispute
Amid a thunderous drop in Chinese companies’ market capitalization in recent weeks, Tudou.com has filed an amendment to its filing for an initial public offering in the United States to raise money for its online video operations in China.
In filings issued hours ago, Tudou Holdings Limited says a lawsuit between Chairman and CEO Gary Wang and his ex-wife has been settled in a Shanghai court. The lawsuit reportedly gives Wang full control of Quan Toodou Network Science and Technology, which is the China-based variable interest entity that actually generates the bulk of the revenue for the hodgepodge of companies that combine to make Tudou.com.
This latest filing appears to give Tudou the opportunity to now list on the Nasdaq Global Market in the coming weeks.
However, an IPO by Tudou comes during a time when many Chinese companies are being blasted by investors, media, and the U.S. Securities and Exchange Commission. Rival online video platform Youku.com, which went public six months ago, has seen its stock price drop over 20% since the first day of trading. Likewise, Chinese Internet stalwarts like Sohu.com, Sina.com, and Netease.com has all dropped about 17%, 8%, and 2%, respectively, in the last three months.
Other Chinese technology companies such as Longtop Financial have had trading stopped in the U.S., amid allegations of fraud coupled with intense SEC scrutiny.