Beijing: Chinese search engine giant Baidu has announced that it will acquire JOYY’s domestic video-based entertainment live streaming business in China (YY Live), which includes YY mobile app, YY.com website and PC YY, among others, for an approximate amount of US$3.6 billion in cash.
The closing of the transaction is subject to certain conditions and is currently expected to occur in the first half of 2021.
“Baidu has built a vibrant mobile ecosystem in the past few years to enable the fast growth of our non-advertising revenues by increasing log in users, adding social engagement to our platform and expanding non-advertising offerings, including membership, live streaming and online games. 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. “YY Live comes to Baidu bringing great synergy. YY Live stands to benefit from Baidu’s large traffic and thriving mobile ecosystem, while Baidu will receive immediate operational experience and knowhow for large-scale video-based social media development, as well as an enviable creator network that will further strengthen Baidu’s massive content provider network. Together with the team from YY Live, Baidu hopes to explore the next-generation livestreaming and video-based social media that can expand beyond entertainment into the diversified verticals on Baidu platform.”
Baidu is entering an increasingly competitive live video streaming market in China. The market is already heating up with the country’s two prominent short video platforms, Kuaishou and Douyin, adopting live streaming with the aim of increasing user engagement and monetization.