Baidu (9888.HK) has officially abandoned its intended $3.6 billion acquisition of JOYY Inc’s live-streaming business in China, as disclosed in a filing with the Hong Kong stock exchange on Monday. The dissolution of the deal raises questions about Baidu’s aspirations to broaden its revenue streams.
The proposed acquisition of JOYY’s Chinese live-streaming business, YY Live, was initiated in 2020. Baidu affiliate Moon SPV Ltd terminated the share purchase agreement with JOYY, alluding that the specified conditions for closing the deal had not been fully met by the end of 2023.
These conditions primarily involved obtaining regulatory approvals from governmental authorities. In 2021, Reuters reported that China’s antitrust regulator was unlikely to approve the deal, aligning with Beijing’s efforts to enhance control over companies amassing significant consumer data and dismantle monopolistic practices.
JOYY, a prominent Chinese social live-streaming platform with a global footprint, expressed its intention to seek legal advice and explore all available options following the cancellation of the deal in a separate statement released on Monday.
