In the United States, YouTube has enjoyed explosive growth over the past year and in the process, pioneered a new grassroots online video star-making system, as Web viewers seek out short-form comic sketches created by other users.

In China, Viacom Inc's MTV Networks in October agreed to share music videos and shows with Baidu in an attempt to reap advertising revenue in the world's second-largest Internet market, with more than 120 million users.

Baidu has approached a number of Chinese video-sharing sites including 56.com and Tudou.com for informal talks, local media reported last week, however, a senior executive at Tudou.com downplayed the possibility of any potential take-over.

"We don't have any plans to sell our company at present as we want it to grow stronger and faster on its own at this stage," said Vicky Wang, a vice president at Tudou.com, adding that the company hopes to list in the future.

Wang's desire not to sell out may be common among owners of video-sharing sites, said another industry source, and would be one of the biggest challenges that Baidu and Google would face if they found acquisition targets were limited and expensive in China.

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