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Relationship Between Shengda And Ku6? Bad For Ku6 Investors?

|Includes:Ku6 Media Co., Ltd. (KUTV)

If you watch the ku6.com, you will find Ads before the videos are almost from the Shengda Game. Shengda Game is an earning company which could make 200M net revenue per year, while Ku6 is still losing money every quarter. Does the Shengda game pay ku6 for ads and how much? otherwise how can ku6 make any money? However, there is report shows that the market share of ku6 in China decreased to less than 1% from more than 5% during 1.5 years. It seems that Shengda is not trying to improve ku6. instead, they squeeze ku6 and compensate for the rest of companies. If so, That's pity for the ku6 investors.

Disclosure: I am long KUTV.

Stocks: KUTV