- Baidu pulled out of a $3.6 billion deal to acquire live streaming platform YY Live from Joyy amid regulatory hurdles.
- The 2020 mega-deal failed to clear barriers as conditions were not fully met by the end of 2023.
- The collapsed buyout reflects tighter restrictions on Chinese corporate consolidation, forcing Baidu to seek streaming alternatives.
Chinese tech leader Baidu has pulled out of a $3.6 billion deal to purchase livestreaming platform YY Live from parent company Joyy.
Regulatory hurdles
The acquisition was first announced in late 2020 but failed to clear regulatory barriers.
According to a Hong Kong stock exchange filing, conditions for the mega-deal “had not been fully satisfied” by the end of 2023.
In response, Joyy stated it weighs legal options surrounding the terminated buyout.
About YY Live and Joyy
YY Live and Joyy overall focus on live streaming and social media across 150 countries.
Joyy’s apps like Bigo Live, Likee, and Hago boast over 1.6 million paying users globally, pulling $236 million in the first three revenue quarters last year.
The collapsed deal reflects China’s tighter restrictions on corporate consolidation over the past two years.
Baidu needs to seek alternatives
Baidu likely aimed to tap YY Live’s geographic reach to aid its video streaming expansion. But antitrust roadblocks ultimately foiled the tech leader’s buyout bid.
Now, Baidu must look beyond the promising but closed-off Joyy live streaming unit to fuel China’s competitive streaming landscape in 2024.
