In a strategic move to bolster its presence in the digital video sector, Baidu, Inc., a leading Chinese technology company specializing in internet-related services and artificial intelligence (AI), has successfully acquired JOYY Inc.’s China-based live-streaming business, YY Live, for approximately $2.1 billion. This acquisition, finalized on February 25, 2025, marks a significant development in China’s tech industry, reflecting both companies’ adaptive strategies in a dynamic market.
Background of the Acquisition
The journey to this acquisition began in November 2020, when Baidu and JOYY initially agreed on a $3.6 billion deal for YY Live. However, the transaction faced regulatory hurdles, leading to its termination in January 2024. Despite these challenges, both companies remained engaged in discussions, culminating in the revised agreement at the reduced price of $2.1 billion. JOYY had previously received $1.86 billion in February 2021 as part of the original agreement, with an additional $240 million paid upon the deal’s completion in 2025.
Company Profiles
Baidu, Inc. Founded in 2000, Baidu has evolved into a dominant force in China’s internet landscape, offering a suite of services including the country’s leading search engine, AI solutions, cloud computing, and various other internet-related products. The company’s mission is to make the complicated world simpler through technology, and it has been at the forefront of integrating AI into its services.
JOYY Inc. Established in 2005, JOYY is a global technology company that operates several social media platforms. Its portfolio includes Bigo Live, a live streaming platform; Likee, a short-form video platform; and Hago, a multiplayer social networking app. Prior to the sale, YY Live was one of its flagship platforms in China, known for its real-time video-based entertainment and social media services.
Strategic Implications
For Baidu, the acquisition of YY Live is a strategic endeavor to diversify its revenue streams beyond traditional search and advertising. By integrating YY Live’s live-streaming capabilities, Baidu aims to enhance its competitiveness against rivals like ByteDance’s Douyin and Tencent’s various platforms in the burgeoning online entertainment market. Additionally, the deal unlocks $1.6 billion that Baidu had previously held in escrow, which the company plans to reinvest into its cloud and AI infrastructure, further solidifying its commitment to technological advancement.
For JOYY, the sale allows the company to concentrate on its international ventures, particularly through platforms like Bigo Live and Likee, which have been gaining traction in global markets. The infusion of capital from the sale provides JOYY with increased financial flexibility to expand and innovate