The proposed acquisition of YY Live included the YY mobile app, YY.com website, PC YY, and others and was expected to enable the Chinese live-streaming service to tap into Baidu's extensive user traffic, accelerate its business growth, and strengthen its ecosystem's monetisation capabilities
Baidu was to acquire YY Live from JOYY in an all-cash deal. (Credit: N509FZ/Wikimedia Commons)
Chinese internet company Baidu has scrapped its previously announced $3.6bn acquisition of YY Live, the domestic video-based entertainment live-streaming business of JOYY in China.
The all-cash deal was announced in November 2020.
As per an exchange filing by Baidu, the company’s affiliate Moon SPV cancelled the share purchase agreement with JOYY as the conditions of finalising the transaction it provided for were not fully met as of the end of 2023.
Baidu mentioned that the conditions included acquiring the mandated regulatory approvals from government authorities.
According to JOYY, the sale of YY Live to Baidu reached significant completion on 8 February 2021, with certain pending matters to be resolved in the future.
Baidu, in a written notice to JOYY, declared its right to terminate the share purchase agreement, thereby nullifying the transaction.
JOYY stated that it is consulting legal counsel and will assess all available options in response to the notice.
The proposed acquisition of YY Live included the YY mobile app, YY.com website, PC YY, and others. It was expected to enable YY Live to tap into Baidu’s extensive user traffic, accelerate its business growth, and strengthen its ecosystem’s monetisation capabilities for unlocking greater value within a broader ecosystem.
JOYY, which is listed on Nasdaq, and had operated previously as YY, is a global technology company. It manages various social products, such as Bigo Live for live streaming, Hago for multiplayer social networking, Likee for short-form videos, an instant messaging product, and additional offerings.