Baidu to buy live-streaming platform Joyy
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Baidu, China Internet search and AI giant, has agreed to pay $3.6 billion in cash for the Chinese live-streaming business of JOYY. The deal may help Baidu catch up in the fast-growing live and short video sectors, where it trails TikTok-owner Bytedance and social media leader Tencent.
Driven by changes in consumer behavior that were accelerated by the coronavirus pandemic, Baidu earlier this year confirmed plans to grow its existing short content streaming activities based around the app called Haokan. Baidu is also the majority owner of perennially loss-making generalist streaming platform iQIYI.
The oft-rumored acquisition of JOYY’s china businesses takes Baidu significantly further in the direction of short-form and may provide benefits to the YY Live business it is buying.
“This transaction will catapult Baidu into a leading platform for live streaming and diversify our revenue source,” said Robin Li, co-founder and CEO of Baidu in a filing.
Questions & Answers
Q.How much cash is Baidu paying for JOYY’s live-streaming business?
How much cash is Baidu paying for JOYY’s live-streaming business?
Baidu has agreed to pay $3.6 billion in cash for the Chinese live-streaming business of JOYY. This acquisition aims to significantly advance Baidu's presence in the short-form content sector.
Q.What is Baidu's stated reason for this acquisition?
What is Baidu's stated reason for this acquisition?
Baidu's co-founder and CEO, Robin Li, stated that this transaction will elevate Baidu into a leading live-streaming platform. It is also expected to diversify the company's revenue sources.
Q.Which companies does Baidu currently trail in the live and short video sectors?
Which companies does Baidu currently trail in the live and short video sectors?
Baidu currently trails TikTok-owner Bytedance and social media leader Tencent in the fast-growing live and short video sectors. This acquisition is intended to help Baidu catch up.
Q.How has Baidu previously attempted to grow its short content activities?
How has Baidu previously attempted to grow its short content activities?
Baidu previously confirmed plans to grow its existing short content streaming activities based around the app called Haokan. This move was driven by accelerated changes in consumer behaviour.
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