Baidu, Inc. (Nasdaq: BIDU) announced Monday that it had entered into definitive agreements with Joyy Inc. (Nasdaq: YY) to acquire Joyy's domestic video-based entertainment live streaming business in China of approximately $3.6 billion in cash, which includes YY mobile app, YY.com website and PC YY. That would exclude Joyy’s Bigo, which operates in Singapore, the United States, Europe, the Middle East.
The deal is expected to close in the first half of 2021, Baidu added.
Robin Li, the co-founder and chief executive officer of Baidu, stated, “This transaction will catapult Baidu into a leading platform for live streaming and diversify our revenue source."
Li added, “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.”
Today, according to IFR, Joyy is considering a potential secondary listing in Hong Kong next year. The company is expected to raise between $500 million and $1 billion but has yet to choose investment banks as of yet.
Notably, Joyy’s Bigo revenue jumped nearly 150% year-over-year in the company's last report.