Baidu mentioned on Monday it’s buying Joyy’s dwell streaming service YY Live in China for $3.6 billion in an all-cash deal because the Chinese web large makes an extra push to diversify past its core search enterprise.
The announcement, which Baidu shared on the sidelines of its quarterly earnings, is the Chinese agency’s greatest foray into the rising market of video streaming. It comes at a time when the corporate has been struggling to struggle new comers akin to ByteDance.
YY has amassed over four million paying subscribers who watch influencers carry out and promote a spread of things on the video app. The streaming service final 12 months purchased a stake price $1.45 billion in Bigo, a Singapore-based startup that operates streaming apps Bigo Live and Like in a push to broaden outdoors of China.
YY at this time is just promoting its China enterprise to Baidu. The closing of the transaction is topic to sure situations and is at present anticipated to happen within the first half of 2021, Baidu mentioned.
“This transaction will catapult Baidu into a number one platform for dwell streaming and diversify our income supply.” mentioned Robin Li, co-founder and chief government of Baidu, in an announcement.
“YY Live stands to profit from Baidu’s giant site visitors and thriving cell ecosystem, whereas Baidu will obtain rapid operational expertise and knowhow for large-scale video-based social media improvement, in addition to an enviable creator community that may additional strengthen Baidu’s large content material supplier community. Together with the group from YY Live, Baidu hopes to discover the next-generation livestreaming and video-based social media that may broaden past leisure into the diversified verticals on Baidu platform.”
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