Baidu has bought Chinese live streaming platform YY Live for US$2.1 billion (A$3.31 billion), in a move that could see it boost its artificial intelligence division.
YY Live was previously owned by social media company JOYY. Baidu first agreed to buy YY Live in 2020 for US$3.6 billion, but Baidu withdrew from the transaction last year after it was not approved by Chinese regulators.
“JOYY entered into agreements with Baidu, Inc. with respect to the sale of the video-based entertainment live streaming business in mainland China previously owned by the Company, for an aggregate purchase price of approximately US$2.1 billion in cash,” JOYY said in a press release.
“The Company previously received approximately US$1.86 billion in February 2021, and, today, the Company received additional cash consideration of approximately US$240 million.”
Baidu will receive around US$1.6 billion that it deposited into an escrow account under the original sale’s share purchase agreement. The company will invest these funds in AI and cloud infrastructure, it said.
Baidu is reportedly set to release a new version of its Ernie AI chatbot later this year, and its chatbots will be free to use.
AI competition in China has intensified with the rise of DeepSeek, which has struck deals with major companies like Tencent, BYD, and China Mobile. Baidu has also agreed to integrate DeepSeek's AI models into its search function.
JOYY’s net income in 2024’s third quarter was US$60.6 million, falling from $72.9 million year-over-year.
The company halted its consolidation of YY Live in 2021 while negotiating the original deal.
Baidu’s (NASDAQ: BIDU) share price closed at US$89.02, up from its previous close at $87.87. Its market capitalisation is $32.73 billion.
