Baidu terminates $3.6-B purchase of JOYY’s China live-streaming unit

Baidu sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File photo

HONG KONG  —Baidu has terminated its planned $3.6-billion acquisition of Nasdaq-listed JOYY Inc’s China live–streaming business, the company said on Monday in a filing with the Hong Kong stock exchange.

The failure of the deal casts a shadow on search engine giant Baidu‘s ambition to diversify its revenue. The company proposed to acquire JOYY’s video-based entertainment live streaming business in China, known as YY Live, in 2020.

Baidu affiliate Moon SPV Ltd terminated its share purchase agreement with JOYY because the conditions of closing the deal it provided for “had not been fully satisfied” as of the end of 2023, Baidu said in an exchange filing on Monday.

READ: China’s Baidu launches $145-M venture capital AI fund

The conditions included obtaining necessary regulatory approvals from governmental authorities, the company said.

Reuters in 2021 reported China‘s antitrust regulator was unlikely to approve the deal as Beijing sought to control big data and break down monopolistic practices.

JOYY is a leading Chinese social live–streaming platform and has expanded globally, with global monthly active users reaching 277 million.