Youku.com Inc., the largest online video site in China, will invest in content and technology to expand market share, Chief Executive Officer Victor Koo said.
“There is still continuing consumer growth and we feel that we need to invest in content and technology to extend our market share,” Koo said. “By investing in content and technology, as penetration increases, we will be able to grow our market share like we have done last year.”
Youku climbed 28 percent to $42.70 yesterday in New York trading after surging 161 percent on its debut the previous day. It was the biggest gain for a U.S. initial public offering since 2005, when Beijing-based Baidu Inc., owner of China’s most-used Internet search engine, began trading.
Youku leads China’s online video market that has grown at a compound annual rate of 74 percent in the past three years and is set to more than double over the next two, according to Shanghai-based iResearch.