Baidu has agreed to pour up to RMB 700 million (USD 100 million) into e-reader developer iReader Technology Co., Ltd for a 8.8% stake in the company, according to the e-book device maker’s filing with the Shanghai Stock Exchange on Wednesday. iReader is also known as Zhangyue in China.
iReader, which produces an e-book reader and an app offering pay-to-view novels, said in another filing on the same day that following this private offering to Baidu via its subsidiary Dagze Bairuixiang Venture Investment Management Co, the two companies will collaborate in strategic investments and digital content licensing.
The deal with iReader comes as Baidu is expanding its range of content via a slew of investments.
Last year, Baidu bought a 37.4% stake in Qimao Novels, which provides novels to readers for free. The tech giant also co-led the USD 434 million Series F round of Chinese Q&A portal Zhihu and acquired a 9.38% stake in Guokr.com, another Q&A portal focusing on science.