Baidu Affiliate Cancels $3.6 Billion Acquisition of JOYY's Chinese Live-Streaming Business

In a significant development in the tech and live-streaming industry, Baidu, one of China's largest internet service providers, has announced through its affiliate Moon SPV Ltd. the termination of a substantial acquisition deal. The planned $3.6 billion purchase of the China live-streaming unit of JOYY Inc. YY will not be proceeding. The decision was disclosed in a stock exchange filing on Monday, indicating that the conditions necessary to finalize the deal had not been met by the end of 2023.

Background of the Acquisition

The acquisition agreement between Baidu's affiliate Moon SPV Ltd. and JOYY was set to enhance Baidu's BIDU presence in the live-streaming space, an area that has shown explosive growth in China. JOYY Inc., headquartered in Guangzhou, runs a multifaceted social media platform that has gained considerable traction both domestically and internationally.

Implications for Baidu and JOYY

This cessation of the acquisition deal raises questions about the future strategies of each company. Baidu Inc. BIDU, situated in Beijing, is well-known for its Internet search services primarily catering to the Chinese market. The incorporation of JOYY's YY live-streaming operations was anticipated to be a strategic move to diversify Baidu's offerings and stoke additional revenue streams. While the exact reasons for the unfulfilled conditions remain undisclosed, the announcement is likely to have repercussions for the market and for the individual strategies of the companies involved.

Baidu, JOYY, Acquisition