PPStream Inc, a Shanghai-based online television video operator, has denied media reports that it was acquired by rival iqiyi.com Inc, the online video unit of Internet search giant Baidu Inc.

Rumors that iqiyi.com has completed a $350 million deal with PPS for a buyout of PPS were circulated widely spread since Friday.

"PPS operates independently very well, and such reports are not realtrue," according to a written statement e-mailed to China Daily.

The company said added it is awash with cash and sees no imminent need for fund raising deals at this stage.

PPS also said that it will launch the first H265 format, or the High Efficiency Video Coding format, which provides higher-quality video streams, such as the 1080p videos, over the Internet Web while using less bandwidth.

In 2011, the company started preparing for a public listing in the US but so far has not submitted an IPO application or prospectus to the US Securities and Exchange Commission.