According to multiple Chinese tech media reports, including Sina and TMTPOST, Xunlei Limited announced on January 27, 2025, that it has reached an agreement with Hupu’s operator, Shanghai Kuanghui Internet Technology Co., Ltd., to acquire the company for 500 million yuan in cash. The transaction is expected to be completed in the first half of 2025.
Xunlei’s Chairman and CEO, Li Jinbo, stated that the acquisition of Hupu will create a strong synergy between the two companies. This strategic move aims to leverage Xunlei’s extensive user base and technological advantages in internet content delivery, combined with Hupu’s high-quality sports content and active community, to enhance content downloads, community interaction, and sports consumption among loyal users. Additionally, the acquisition will enrich Xunlei’s content ecosystem, strengthen community operations, and improve the overall user experience through Xunlei’s technological and brand strengths.
Xunlei, originally known as Shenzhen San Dai Technology Development Co., Ltd., was renamed in 2005. It offers products and services for both individual and corporate users, focusing on download acceleration and entertainment. In the third quarter of last year, Xunlei’s unaudited financial report showed a total revenue of $80.1 million, a year-on-year decrease of 4.9%, primarily due to the reduction in domestic live streaming and cloud computing services. The gross margin was 50.8%, up from 44.6% in the same period last year. Under GAAP, the net profit for the quarter was $4.4 million, unchanged from the previous year. As of September 30, 2024, Xunlei had approximately 5.51 million members, compared to 5.02 million in the same period last year. Since last year, Xunlei has accelerated its global strategy, including opening a global technology center in Hong Kong and establishing an AI global headquarters in Yuhang District, Hangzhou.
Founded in 2004, Hupu is a cultural community website focused on sports events and daily life, with content covering basketball, football, gaming, and esports. The name “Hupu” is a phonetic translation of the English word for “hoop.” The platform now has over 100 million users, with 80 million active users, more than 90% of whom are male. Its vertical content and reliance on advertising for revenue have made it less resilient to risks. Over the past decade, Hupu has attempted to go public twice but failed both times. Its highest valuation reached 7.722 billion yuan. Subsequent unsuccessful value-added innovations, the COVID-19 pandemic, and the “NBA Morey” incident also had significant impacts.
At last year’s 20th-anniversary celebration, Yin Xuebin, who took over as Hupu’s CEO in 2021, revealed that the platform will continue to focus on male users but emphasized that this should not be the only label. Instead, it aims to expand its user base by focusing on a broader range of male interests through its products and services.
