IPO Will Be Bittersweet for Tudou’s CEO
An initial public offering is typically seen as a payday, a time when a company raises new funding and shares held by executives and investors are finally valued by the market. But when Chinese online-video provider Tudou Holdings Ltd. goes public, its chief executive is going to have to shell out some of his own cash.
That’s because CEO Garry Wei Wang has to pay his ex-wife an undisclosed amount post-IPO as part of a settlement reached last month. And it’ll be the second time he pays her.
We covered the settlement a few weeks back and wondered whether the deal would permit Tudou to advance its IPO, which had been in a holding pattern since Wang’s ex-wife filed a lawsuit against him last November. The arrangement gave Wang full control over his stake in the corporate entity that accounts for nearly all of Tudou’s revenue.