Baidu confirms the purchase of a streaming platform for 2.1 billion dollars

The Chinese internet giant, Baidu, has confirmed the purchase of JOYY Inc’s livestreaming business for $2.1 billion, after canceling a previous agreement due to a lack of regulatory approval.

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The price paid represents approximately 60% of the original agreement, which was valued at $3.6 billion in 2020.

Baidu announced that it has acquired the video-based live entertainment business of JOYY Inc, a transaction that, according to statements from founder Robin Li in 2020, has the potential to “catapult Baidu as a leading livestreaming platform and diversify our revenue sources.”

An agreement they have been pursuing since 2020

However, the initial agreement was supposed to be completed in 2021, but it was canceled in January 2024 due to being subject to regulatory conditions that were not met.

Livestreaming is a multimillion-dollar sector in China, generating significant profits for e-commerce giants and popular influencers. Baidu is facing increasing competition from rivals like Tencent, which operates the WeChat messaging platform, and ByteDance, the company behind TikTok and its Chinese equivalent, Douyin. This competition has complicated Baidu’s position in the market.

In a context where income diversification becomes key, Baidu has also been exploring areas such as cloud computing, autonomous driving, and artificial intelligence.

Although the company reported that its revenues in 2024 decreased by 1%, its net income increased by 100% in the fourth quarter, closing the year with an annual net income of $3.26 billion, which represents a 17% increase compared to 2023.

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This strategic move reflects Baidu’s effort to adapt to a competitive environment and change its sources of income in the face of current market challenges.