Youku IPO Has Been Sought After &Nbsp, And Has Not Yet Achieved Profitability.

In a successful way IPO After that, Youku network The question of how to make profits has not yet been found.

In December 8th, Youku network was in New York. stock exchange Officially listed, the stock code YOKU, the issue price of 12.8 U.S. dollars, slightly higher than the previous 9-11 U.S. dollars in the price range, issued a total of us depositary shares (ADS) 15 million 840 thousand, a total of about 203 million U.S. dollars raised. On the day of listing, Youku shares rose 161%, eventually closing at $33.44.

The main underwriters listed on Youku are Goldman Sachs, Allen & Company LLC, Piper Jaffray & Co. and Pacific Crest Securities LLC, three of which are joint underwriter.

Youku is the world's first independent video website in the US. Youku CEO, who was interviewed by video link, said that raising funds would mainly be used to enhance the brand and to open up competitive advantage.

In the current domestic video industry, Youku's scale, revenue, financing and other indicators are leading competitors, the largest video media platform. Despite being the leader of the industry, Youku has not been able to make profits so far in the first 9 months of the first 100 million 6 thousand months of this year, according to the IPO document previously submitted to SEC.

Youku's loss also reflects the current operating situation of the domestic video website industry. The second ranked Tudou has also submitted IPO applications. According to Tudou's IPO file, its loss in the first 9 months of this year was about 83000000. Video website is developing at a high speed, and still faces severe pressure of profit.

The cost of video website is mainly composed of bandwidth, video content purchase and depreciation cost of equipment, with the largest proportion of bandwidth cost. With the domestic fight against pirated videos and the pressure of copyright disputes that may arise after the listing, video websites will surely generate greater input in copyright.

In terms of Youku, the purchase cost of copyright content in 2009 accounted for only 7.8% of the total cost, and this proportion has increased to 22.7% in the first 9 months of this year. At the same time, according to the expenditure in the first 9 months of this year, the cost in 2010 will increase by nearly 70% compared with 2009.

At present, the revenue of video websites is mainly dependent on online advertising. Youku 94.9%'s revenue comes from online advertising. However, online advertising growth from Youku and potato websites has declined to varying degrees.