Chinese search giant Baidu moved to bolster its position in the video market by arranging a $3.6 billion acquisition of live streaming service YY Live.
In a statement, Baidu’s chief Robin Li said the move will diversify its revenue sources and “catapult” the company into a leading position in the live streaming sector. He said the move would open the door to “next-generation live streaming and video-based social media”, going beyond entertainment into other verticals.
YY Live chairman David Xueling Li noted in a separate statement the deal will boost growth and revenue-generating capabilities by tapping Baidu’s “massive user traffic” and unleashing opportunities in a larger ecosystem.
He noted the app, owned by China-based company JOYY, was a “leading pan-entertainment live streaming platform” in the country, boasting a broad range of expertise covering content ecosystems and operations.
The acquisition will bring 4 million paying subscribers to Baidu, Bloomberg reported. The deal is expected to close in the first half of 2021, subject to certain conditions.
Video streaming has become increasingly competitive in China, with Douyin, Kuaishou and Tencent Video among the most popular players in the field.