Baidu, Inc. is acquiring YY Live for $2.1 billion to strengthen its position in China's digital entertainment and live-streaming market.

Overview of the Deal

Baidu, Inc. is set to acquire YY Live, a prominent video-based live-streaming platform, in a significant transaction valued at $2.1 billion. Scheduled to close in H1 2025, this acquisition reflects Baidu's commitment to enhancing its competitive presence in China's digital entertainment and live-streaming market. Initially, regulatory challenges delayed a prior agreement worth $3.6 billion in 2024. The acquisition aims to diversify Baidu's revenue streams and expand its ecosystem beyond its core search and AI divisions, enabling it to better compete with rivals like Douyin.

YY Live boasts a robust user base and cutting-edge streaming technology, which Baidu intends to integrate with its existing platforms, including the Baidu App and Haokan. This strategic integration is expected to foster synergies in user engagement, content delivery, and advertising monetization. By utilizing its AI-driven recommendation algorithms and cloud infrastructure, Baidu aims to enhance YY Live’s performance, improve user experiences, and drive revenue growth through targeted advertising and premium content offerings.

Industry Overview in China

The digital entertainment landscape in China is witnessing rapid growth, characterized by intense competition and evolving consumer preferences. With the rise of