Baidu Inc.’s Attempt to Acquire Joyy Inc.’s Live-Streaming Business Fails
Baidu Inc.’s attempt to acquire Joyy Inc.’s live-streaming business for China has fallen through, marking a setback for the tech giant’s ambitions in the digital video sector.
The Beijing-based company revealed that its $3.6 billion deal for Joyy’s YY Live has lapsed, three years after it was initially announced. According to a filing to the exchange on Monday, the deal expired because regulators did not approve the transaction by December 31. The deal was originally set to close in the first half of 2021.
The failure of the acquisition deal comes as a disappointment for Baidu Inc., which had been looking to expand its presence in the live-streaming market in China. Joyy Inc.’s live-streaming business, YY Live, was seen as a valuable asset for Baidu as it sought to compete in the increasingly competitive digital video landscape.
Baidu Inc. has not yet provided further details on the reasons behind the regulators’ decision not to approve the transaction. The company has also not indicated whether it will continue to pursue other opportunities in the live-streaming sector following the collapse of the Joyy Inc. deal.
The news of the failed acquisition deal may impact Baidu Inc.’s stock performance and could have wider implications for the company’s digital video strategy. Investors and industry analysts will be closely watching Baidu’s next moves in the wake of this significant development.