Given those headwinds, the predators' concerns over iQIYI's valuation is understandable. The latest prospectus from iQIYI also included the reminder of the existence of a "poison pill." It explains that the previous convertible note issues "may dilute the ownership interest of existing shareholders." Variety calculates that the two previous convertible note issues represent an overhang equivalent to 24% of the currently issued ADRs.