Baidu Acquires JOYY’s China Live-Streaming Unit for $2.1 Billion in Digital Video Expansion

Baidu, a prominent search giant, has made a significant move in the digital video market by purchasing JOYY’s China live-streaming business for about $2.1 billion. This acquisition, originally agreed upon in 2020 for $3.6 billion, is finally coming to fruition after facing regulatory obstacles last year.

The acquired business, known as YY Live, will provide Baidu with an opportunity to diversify its revenue streams and compete more effectively with other online entertainment platforms like Douyin and TikTok-parent ByteDance. This acquisition is a strategic one for Baidu, especially considering the fierce competition in the industry from companies like Tencent and Alibaba’s Youku.

Despite some challenges in recent years, Baidu remains optimistic about its future in the digital realm, especially as it aims to expand in AI and cloud services. With $1.6 billion unlocked from escrow accounts as part of the 2020 agreement, the company can invest in the necessary equipment to stay competitive in the AI sector, an industry that has been gaining significant attention lately.

Overall, this acquisition marks an important step for Baidu in its efforts to strengthen its position in the digital video market and pursue further growth opportunities in the tech sector.