Murdochs Make $30M Investment in Chinese Upcoming IPO, Xunlei (XNET)
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In an SEC filing Thursday, Rupert and Wendi Murdoch disclosed an investment in upcoming Chinese IPO, Xunlei (Nasdaq: XNET).
The Murdochs invested $29.4 million for a stake in the $200 million IPO.
Rupert is famously the head of media giant, News Corp. (Nasdaq: NWSA).
With their nearly $30 million commitment, the Murdochs are joining Google (Nasdaq: GOOG), which holds a 2.8 percent stake, and IDG Technology, which has a 12.2 percent stake. Based on information in the filing, the Murdoch's could hold up to an 18.4 percent stake in Xunlei.
Notably, the investment is rather small compared with the Murdochs total wealth. Forbes pegs the number at about $7.7 billion, meaning the investment is the equivalent of a car payment for the average American (about $170 based on average salary of $44,000 in the U.S.).
Xunlei gains most of its revenue from online advertising, and is considered the "YouTube meets BitTorrent" amalgamation of China. Because of its business, Xunlei reported dealing with 108 lawsuits in 2009, 126 in 2010, and 10 in 2011 through March. Still pending are 33 copyright infringement lawsuits, claiming damages of $3.4 million.
The company also has services aimed at cloud storage.
Click here for more color from the filing.
The Murdochs invested $29.4 million for a stake in the $200 million IPO.
Rupert is famously the head of media giant, News Corp. (Nasdaq: NWSA).
With their nearly $30 million commitment, the Murdochs are joining Google (Nasdaq: GOOG), which holds a 2.8 percent stake, and IDG Technology, which has a 12.2 percent stake. Based on information in the filing, the Murdoch's could hold up to an 18.4 percent stake in Xunlei.
Notably, the investment is rather small compared with the Murdochs total wealth. Forbes pegs the number at about $7.7 billion, meaning the investment is the equivalent of a car payment for the average American (about $170 based on average salary of $44,000 in the U.S.).
Xunlei gains most of its revenue from online advertising, and is considered the "YouTube meets BitTorrent" amalgamation of China. Because of its business, Xunlei reported dealing with 108 lawsuits in 2009, 126 in 2010, and 10 in 2011 through March. Still pending are 33 copyright infringement lawsuits, claiming damages of $3.4 million.
The company also has services aimed at cloud storage.
Click here for more color from the filing.
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