Baidu Cancels Acquisition of JOYY's China Live-Streaming Division

In a significant move within the tech and investment spheres, Baidu affiliate Moon SPV Ltd has called off its previously announced $3.6 billion deal to purchase the China live-streaming unit of JOYY Inc. The termination of the share purchase agreement, which was initially aimed at bolstering Baidu's presence in the social media landscape, was disclosed in an exchange filing earlier this week. Both parties had sought to close the strategic transaction, which was subject to a range of closing conditions. However, as stipulated, not all of these conditions were fully satisfied by the end of 2023, leading to the deal's dissolution.

Impact on JOYY Inc.

JOYY Inc., operating under the stock ticker YY, is widely recognized for its social media platform that serves users both within the People's Republic of China and on an international scale. With the headquarters situated in Guangzhou, JOYY has cultivated a significant presence in China's bustling social media and live-streaming market. The called-off transaction with Baidu's affiliate is likely to prompt JOYY to reassess its growth strategy and seek alternative avenues for business expansion and user engagement moving forward.

Perspective on Baidu's Stance

Baidu Inc., traded as BIDU and headquarted in Beijing, continues to be a dominant figure in the realm of Chinese Internet search services. Despite the setback in this acquisition, Baidu remains focused on its core offerings and strategic initiatives to maintain its competitive position in China's Internet industry. The termination of the deal signifies a shift in Baidu's approach to integrating live-streaming capabilities within its portfolio, and it could potentially scout for other partnerships or investments in the future that align with its growth strategy.

Baidu, JOYY, Acquisition