Xunlei Looks Even More Interesting in Baidu Tie-Up

So, who exactly is this company called Xunlei, which I wrote about a couple of weeks ago as it looked like it was moving toward an IPO later this year? (previous post) Now we hear that the video sharing site whose investors include both Google (Nasdaq: GOOG) AND its Chinese archrival Baidu (Nasdaq: BIDU) is forming forming a tie-up with the latter for an unspecified consumer-oriented downloading service. (Chinese article) It sounds like Xunlei will make its videos somehow available through the Baidu’s dominant search portal, in what sounds like a potent  combination. With names like Baidu and Google behind it, Xunlei is starting to look like a very good prospect to take on some of the more established players in video sharing like money-losing Youku (NYSE: YOKU) and Tudou.  I’d previously mentioned that Google might try to take out Xunlei prior to an IPO, but with both Google and Baidu vying for influence that could be more problematic. Either way, Xunlei is certainly a company to watch going forward.

Bottom line: Xunlei is a strong-looking up-and-comer, backed by Baidu and Google, that could pose some strong challenges to other video sharing sites like Youku and Tudou.