Baidu has completed its long-delayed purchase of JOYY’s China live-streaming unit, YY Live, for $2.1 billion. This move strengthens Baidu’s position in the digital video market and revives a deal that initially fell through last year.
A Deal Years in the Making
Baidu and JOYY originally agreed on a $3.6 billion acquisition in 2020. At the time, video-streaming platforms saw a surge in users due to the pandemic. However, regulatory challenges in China prevented the deal from closing, and it was officially abandoned in early 2024.
Now, with Beijing easing its stance on the tech industry, Baidu has successfully completed the purchase. JOYY had already received $1.86 billion in 2021 as part of the original agreement, and Baidu paid an additional $240 million to finalize the deal.
Strengthening Baidu’s Position
The acquisition helps Baidu expand its digital entertainment offerings and compete with major players like ByteDance, the parent company of TikTok and Douyin. It also gives Baidu a stronger foothold in the fast-growing live-streaming sector.
IQIYI, a Baidu subsidiary often compared to Netflix, has faced challenges from rivals such as Tencent Video and Alibaba’s Youku. The addition of YY Live could give Baidu an edge in the competitive market.
Boosting AI and Cloud Investments
Aside from expanding its digital content business, the acquisition also frees up $1.6 billion that Baidu had previously held in escrow for the 2020 deal. The company could now use these funds to invest in AI and cloud computing.
With AI development becoming increasingly competitive, Baidu may use the funds to enhance its infrastructure and stay ahead of emerging players like DeepSeek.
Following the announcement, Baidu’s U.S.-listed shares rose by 1% in premarket trading, while JOYY saw a 6% jump.
