IQIYI Reports Narrower Loss In Q2, Announces $500 Mln Private Placement With PAG

(RTTNews) - Chinese online entertainment service company iQIYI, Inc. (IQ) Tuesday announced loss for the second quarter that narrowed from the prior year.

The quarterly loss was RMB 213.995 million or $31.9 million or RMB 0.28 per share, compared to loss of RMB 1.397 billion or RMB 1.75 per share in the prior year.

Revenue for the quarter declined 13 percent to RMB 6.656 billion or $993.8 million, from RMB7.608 billion a year ago.

In a separate announcement, the Company said it has entered into a definitive agreement with investment firm PAG Asia, PAG Pegasus, and or their affiliates.

As per the deal, the Investors will subscribe for an aggregate amount of $500 million in convertible notes with an option to subscribe an additional up to $50 million of the Notes. The Notes will bear an interest rate of 6 percent per annum.

The transaction is expected to close in the fourth quarter of 2022 and the option for additional notes is exercisable within two months from the closing.