London CNN —Baidu’s bid to expand its live streaming business in China and diversify its revenue has suffered a blow with the collapse of a planned $3.6 billion acquisition.
The Chinese tech giant announced Monday that one of its affiliate companies had terminated a 2020 agreement with Nasdaq-listed Joyy (YY), the owner of popular live streaming platform YY Live.
Baidu CEO Robin Li said at the time that the acquisition would “catapult Baidu into a leading platform for live streaming and diversify our revenue source.”Like other live streaming platforms in China, YY Live makes money from users who buy virtual gifts for performers.
Live streaming revenues fell by nearly 9% to $495.8 million.
But as China’s economic outlook deteriorates, Beijing has shown signs of easing the crackdown, frequently talking up tech companies’ role in the economy.
Persons:
London CNN —, ” Joyy, “, Robin Li, Joyy
Organizations:
London CNN, Nasdaq, Baidu, Hong Kong Stock Exchange, Big Tech
Locations:
China, , Beijing