Baidu stated on Monday it’s buying Joyy’s stay streaming service YY Stay in China for $3.6 billion in an all-cash deal because the Chinese language web large makes an additional push to diversify past its core search enterprise.
The announcement, which Baidu shared on the sidelines of its quarterly earnings, is the Chinese language agency’s largest foray into the rising market of video streaming. It comes at a time when the corporate has been struggling to combat new comers resembling ByteDance.
YY has amassed over 4 million paying subscribers who watch influencers carry out and promote a spread of things on the video app. The streaming service final 12 months bought a stake worth $1.45 billion in Bigo, a Singapore-based startup that operates streaming apps Bigo Stay and Like in a push to broaden outdoors of China.
YY immediately is simply 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 stated.
“This transaction will catapult Baidu into a number one platform for stay streaming and diversify our income supply.” stated Robin Li, co-founder and chief government of Baidu, in an announcement.
“YY Stay stands to profit from Baidu’s massive site visitors and thriving cell ecosystem, whereas Baidu will obtain speedy operational expertise and knowhow for large-scale video-based social media improvement, in addition to an enviable creator community that can additional strengthen Baidu’s huge content material supplier community. Along with the staff from YY Stay, 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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