Baidu's Live-Streaming Dreams Shattered as US$3.6 Billion Deal to Acquire Joyy's YY Live Falls Through
Baidu, the Chinese search engine and AI giant, has suffered a major setback in its quest to expand into the digital video arena.
The company's bid to acquire Joyy's live-streaming business, known as YY Live, has lapsed after regulators failed to approve the US$3.6 billion deal. This news comes as a blow to Baidu's ambitions in the live-streaming space.
The acquisition was first announced by Baidu in November 2020 as part of its strategy to diversify its content offerings. However, the deal has now expired three years after its unveiling, leaving Baidu without the opportunity to enter the lucrative live-streaming market.
Moon SPV, an affiliate of Baidu, terminated its share purchase agreement with Joyy due to certain conditions not being met, including the failure to obtain necessary regulatory approvals from authorities. This development has dashed Baidu's hopes of expanding its presence in the digital video sector.
The lapse of the deal is a significant setback for Baidu, as the company had been banking on the acquisition to bolster its live-streaming capabilities and compete with other major players in the industry.
Live-streaming has become increasingly popular in China, with millions of users tuning in to watch their favorite content creators and influencers.
Baidu's failure to secure regulatory approval highlights the challenges faced by tech companies in navigating China's complex regulatory landscape. The country has been tightening its grip on the tech sector in recent years, with increased scrutiny and stricter regulations being imposed on mergers and acquisitions.
Despite this setback, Baidu remains a dominant force in the Chinese tech industry, with its search engine and AI technologies continuing to drive its success. The company will now need to reassess its strategy and explore alternative avenues for growth in the digital video space.
Baidu's bid to acquire Joyy's YY Live has expired due to regulatory approval issues
The $3.6 billion deal was part of Baidu's strategy to broaden its content offerings
Moon SPV, an affiliate of Baidu, terminated the share purchase agreement with Joyy
Source: SCMP