Baidu’s live-streaming ambitions dealt a blow by lapse of US$3.6 billion deal to buy Joyy’s YY Live
- Baidu says its bid to buy Joyy’s YY Live has expired three years after it was unveiled because regulators did not approve the transaction
- Baidu first announced the acquisition in November 2020 as part of a strategy to broaden its content offerings
Baidu’s bid to acquire Joyy’s live-streaming business for China has lapsed, dealing a blow to the search engine and artificial intelligence (AI) giant’s attempt to advance into the digital video arena.
The Beijing-based company said its US$3.6 billion deal for Joyy’s YY Live has expired three years after it was unveiled because regulators did not approve the transaction by December 31, according to a Hong Kong stock exchange filing on Monday. The deal was previously slated to close in the first half of 2021.
Moon SPV, an affiliate of Baidu, terminated its share purchase agreement with Joyy because certain conditions had not been met, including “obtaining necessary regulatory approvals from authorities”, the statement said.
Baidu first announced the acquisition in November 2020 as part of a strategy to broaden its content offerings to better diversify its revenue.
That approach has become less relevant over the past year as the tech industry’s focus has turned to generative AI, in which Baidu has been seen as an early domestic leader.
The setback marks another challenge for Baidu’s efforts to catch up with companies like ByteDance in the online entertainment arena, after its relatively late start in newer spheres such as live streaming.
