The so-called Netflix of China just conquered the U.S. stock market. iQiyi, a Netflix-style service owned by internet giant Baidu, just raised $2.25 billion in its IPO, per Axios. Since the company originally hoped to raise $1.5 billion, we’re guessing it is counting this as a success.
Prior to the IPO, iQiyi was valued at around $17 billion, according to CNN. iQiyi has some 50 million subscribers in China, who sign up for the service to watch series like Black Mirror, Stranger Things, and Mindhunter, thanks to a licensing deal with Netflix. While it posted revenue of $2.7 billion, according to the BBC, iQiyi is not currently profitable, losing nearly $574 million last year. The owners are undoubtedly hoping that their successful IPO will start a path to profitability.
The company filed its paperwork last month to trade on the Nasdaq under the stock ticker “IQ.” Perhaps the most surprising thing about this story is that no other tech company had swiped up that ticker symbol yet.