Chinese tech giant Baidu announced on Tuesday that it had completed the acquisition of social media platform JOYY Inc.’s livestreaming business for $2.1 billion. The purchase comes a year after Baidu canceled an earlier deal due to regulatory hurdles.
According to a filing on the Hong Kong Stock Exchange, the price Baidu paid was about 60% of the $3.6 billion it had originally agreed to pay for JOYY’s mainland China-based service in 2020.
Baidu stated that it had “entered into agreements with JOYY Inc and acquired the video-based entertainment live streaming business” and had “paid an aggregate purchase price of approximately US$2.1 billion.”
Baidu’s founder, Robin Li, previously described the acquisition as a way to “catapult Baidu into a leading platform for live streaming and diversify our revenue source.” However, the original deal was delayed and ultimately scrapped in January 2024 after Baidu failed to secure the necessary government approvals. The acquisition was initially expected to be finalized in 2021.
Livestreaming has become a lucrative industry in China, driving significant profits for e-commerce platforms and social media influencers. The sector has been a battleground for major players such as Tencent, the operator of WeChat, and ByteDance, which owns TikTok and its Chinese equivalent, Douyin.
Baidu has been working to expand beyond its core search engine business, investing in cloud computing, artificial intelligence (AI), autonomous driving, and other sectors with varying degrees of success.
Despite facing stiff competition, Baidu reported positive financial results this year. Although its overall revenue declined by 1% in 2024, the company’s net income surged 100% in the fourth quarter. This contributed to an annual net income of $3.26 billion, marking a 17% increase from 2023.
AFP
