Baidu, Inc. (NASDAQ: BIDU), founded in 2000 by Robin Li and Eric Xu, is a leading Chinese multinational technology company specializing in Internet services and artificial intelligence. Headquartered in Beijing, Baidu operates China’s dominant search engine and offers a diverse portfolio of services, including Baidu Maps, Baidu Baike, and the video streaming platform iQIYI. The company has significantly invested in AI, cloud computing, and autonomous driving technologies, positioning itself as a key player in China’s tech industry.
Over the years, Baidu has engaged in numerous mergers and acquisitions (M&A) to expand its technological capabilities and market reach. These strategic investments have been pivotal in transitioning Baidu from a search engine provider to a comprehensive AI-driven tech conglomerate.
Chronological List of Baidu’s Major M&A Activities:
- July 2009: Acquired a majority stake in Qunar, a travel search engine, for an undisclosed amount.
- November 2012: Acquired Providence Equity Partners’ stake in iQIYI, consolidating its position in online video streaming.
- May 2013: Purchased PPS’s online video business for $370 million to merge with iQIYI.
- August 2013: Acquired 91 Wireless from NetDragon for $1.85 billion, marking one of China’s largest internet deals.
- February 2013: Acquired TrustGo Mobile, a mobile security company, for $30 million.
- July 2014: Acquired a controlling stake in Brazilian e-commerce site Peixe Urbano for an undisclosed amount.
- July 2017: Acquired Kitt.ai, a Seattle-based AI startup, to enhance its conversational AI capabilities.
- April 2017: Acquired xPerception, a U.S. startup specializing in computer vision, to bolster its autonomous driving technology.
- June 2016: Invested $50 million in Bitauto, an online automotive platform, alongside Tencent and JD.com.
- March 2015: Invested in Uxin Ltd., a used car e-commerce platform, for an undisclosed amount.
- December 2023: Participated in venture financing rounds for Infinigence AI and Wuwen Xinqiong, investing in AI startups to strengthen its AI ecosystem.
- November 2023: iQIYI acquired VouchedFor, a UK-based platform, for $9.18 million to expand its international footprint.
Recent M&A Activities:
In February 2025, Baidu finalized the acquisition of JOYY’s China live-streaming business, YY Live, for approximately $2.1 billion. This deal, initially agreed upon in 2020 for $3.6 billion, was delayed due to regulatory hurdles but was revived following a more favorable regulatory environment. The acquisition aims to diversify Baidu’s revenue streams and enhance its competitiveness in the digital video market.
Divestitures:
- April 2018: Divested a majority stake in its Financial Services Group (FSG), rebranded as Du Xiaoman Financial, raising approximately $1.9 billion. Investors included TPG and The Carlyle Group.
- May 2018: Divested a majority stake in its Global DU business, which included DU ads and tool apps, to focus on AI-powered core businesses.
- March 2019: Exited its investment in Lianjia, a real estate brokerage, as part of a broader shareholder reduction ahead of a potential public listing.
Analysis of M&A Outcomes:
- Successful Deals: The acquisition of iQIYI and PPS significantly strengthened Baidu’s position in the online video streaming market. Investments in AI startups like Kitt.ai and xPerception have been instrumental in advancing Baidu’s AI and autonomous driving technologies.
- Challenges: The initial attempt to acquire YY Live faced regulatory challenges, leading to a delayed and reduced-value deal. Additionally, some international expansions, such as the acquisition of Peixe Urbano, faced difficulties due to market differences and competition.
Strategic Decisions and Reasoning:
Baidu’s M&A strategy reflects its commitment to evolving from a traditional search engine to a diversified technology leader. By acquiring companies in AI, autonomous driving, and online video, Baidu aims to build a comprehensive ecosystem that leverages its core competencies. Divestitures of non-core businesses allow Baidu to reallocate resources to areas with higher growth potential and strategic importance.
Overall, Baidu’s M&A activities demonstrate a focused approach to innovation and market expansion, aligning with its long-term vision of becoming a global AI powerhouse.