Google Buys Stake in China’s Xunlei

Google has bought a stake in China's Xunlei Network Technology Company, deepening its presence in the Chinese Internet market.

Google is increasing and diversifying its stake in the Chinese Internet market, buying a stake in Xunlei Network Technology Company. Xunlei develops peer-to-peer video and content-distribution software, and is reported to have distributed 80 to 100 million copies of its video-sharing and download-accelerating software. The company is reportedly working with television broadcasters in China to offer peer-to-peer downloads of television content, along with sliding advertisements into the programming.

Industry speculation—and the China Daily—has Google’s partner in the investment as Ceyuan Ventures, a Shanghai venture capital firm.

The move marks a deepening of Google’s ties to the Chinese market; recently, Google has shown some reluctance to launch services for the Chinese market since it would be required to confirm with Chinese regulations and practices regarding Internet censorship. However, by investing in Chinese companies, Google avoids having to directly enforce Chinese mandates, while reaping the benefits of China’s rapidly-growing Internet economy.

The movie also marks another Google investment in online video technology; the company famously bought YouTube last year for $1.65 billion.

Terms of the deal haven’t been disclosed by Google, although Xunlei is expected to announce details next week.