Baidu, the Chinese search engine giant, has announced the termination of its planned $3.6 billion deal to acquire JOYY Inc’s live-streaming business in China. This development, disclosed in a filing with the Hong Kong stock exchange, marks a setback in Baidu’s strategy to diversify its revenue streams.
The acquisition, initially proposed in 2020, was aimed at integrating JOYY’s Chinese live-streaming service, YY Live, into Baidu’s portfolio. However, Baidu’s affiliate Moon SPV Ltd decided to terminate the share purchase agreement, citing that the conditions for closing the deal, including necessary regulatory approvals, were not fully met by the end of 2023.
The collapse of this deal casts doubt on Baidu’s ambitions to expand beyond its traditional search engine business into the burgeoning live-streaming sector. The acquisition was seen as a significant move for Baidu to tap into the lucrative live-streaming market and offset its reliance on search-driven revenue.
JOYY, a prominent player in the Chinese social live-streaming platform with a global reach of 277 million monthly active users, expressed its intention to seek legal advice and explore all options following the deal cancellation. Despite the substantial completion of the sale of YY Live to Baidu in February 2021, certain aspects remained unresolved, leading to this unexpected termination.
This development reflects the complexities of large-scale acquisitions in the tech industry, especially in the context of regulatory challenges and shifting market dynamics. For market analysts and investors, this cancellation serves as a reminder of the uncertainties inherent in high-value tech mergers and acquisitions.
