The tech world has been wondering about Chinese online video site Tudou and why its long-awaited IPO may have stalled. Rumors abounded a few weeks back that perhaps a Youku acquisition was in the works, but our subsequent inquiries seem to indicate that there’s nothing going on there.
However according to a Wall Street Journal report, a revised version of the company’s IPO filing reveals that a lawsuit has been filed against CEO Gary Wang by his ex-wife. This matter was not mentioned in the initial November 2010 filing. According to the new revision:
The ex-wife of Mr. Gary Wei Wang, our founder and chief executive officer, recently initiated a lawsuit against him in a local court in Shanghai and claimed for her share of community property during their marriage, which includes a share of the 76% equity interests of Quan Toodou held by Mr. Wang.
The document goes on to say that based on analysis these circumstances do “not impact … previous or current accounting conclusion on the consolidation of Quan Toodou.” There is the possibility that if the court rules that equity must be transferred to Mr. Wang’s ex-wife or sold, then there may have to be a renegotiation to avoid “significant disruption to [the] business, operations and financial condition.”
In any case, Tudou isn’t giving up on its IPO plans and revisions to its latest filing last week appear to confirm this. Time will tell exactly how much of an obstacle this lawsuit poses to Tudou.
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