Chinese Internet video website has announced that it has created a joint venture with another Internet video website,, in Shanghai.

The newly established JV will be engaged in the purchase of licensed films and TV series.

Under the agreement signed by the two parties, will reportedly hold a 51% stake in the JV and will hold the remaining 49%. Meanwhile, and will invest CNY510,000 and CNY490,000, respectively, in cash.

The two parties will reportedly evaluate the purchased video contents in accordance to their quality and the preference of audiences. The JV will purchase the exclusive licenses for most of the video content and resell the license to other websites.

The board of directors of the new company will be formed by two directors from and two from The chairman will be assigned by and deputy chairman assigned by The term of office of directors is three years and they can seek re-election. The operation and management organization of the JV is responsible for the daily operation and the organization will have one general manager who will be recommended by The term of office of the general manager is also three years.

Wang Xiangyun, chief operating officer of, said that with this strategic joint operation, the company will gain a powerful partner. The joint investment is expected to increase the two parties’ licensed video resources in a cost-effective way.

Liu Hong, chief operating officer of, said the new JV will play advantages of and to enrich the video contents supply of both websites.