Even in the fresh stock market year of 2024, takeovers and mergers remain exciting. Yesterday, news came through the news tickers from China. The search engine giant Baidu is withdrawing from the planned billion-dollar takeover of the Chinese live streaming platform Joyy. This deals a heavy blow to the strategy of diversifying revenues in the future.

Baidu: Google of China… Baidu is a Chinese technology company and one of the largest search engines in the country. The company was founded in 2000 by Robin Li and Eric Xu. The company is often referred to as the Google of China. Internet users can find the most relevant and up-to-date search results for their specific query through the website. There are also special search options for maps, images, videos, or news.

In addition, the company offers community pages such as Baidu PostBar, a query-based, searchable online community platform, or Baidu Knows for interactive knowledge transfer, as well as a user-generated online encyclopedia. The company’s offerings also include PC client software such as a browser or media player. In addition, Baidu.com serves as an online marketing platform for clients and companies to reach relevant internet users.

In addition to the core business of the search engine, Baidu has recently invested in several new business areas. One division is autonomous driving, in which Baidu plays a leading role in China.

…cancels billion-dollar takeover With the planned acquisition of Joyy, the company’s operations were to be put on an even broader footing. Joyy, known as YY Live, is a leading Chinese social live streaming platform that has expanded globally, with 277 million monthly active users worldwide. However, the purchase of the streaming provider is now likely to have failed due to Chinese government authorities.

Accordingly, Baidu is now burying its takeover plans. As early as November 2020, the Chinese technology giant announced the planned acquisition. Baidu wanted to swallow up the US-listed streaming provider Joyy for $3.6 billion.

Purchase contract is terminated Joyy is a veteran in the Chinese live streaming industry and released a voice software in 2008. Baidu values the mature live broadcast system of YY Live, a company executive said at the time. Baidu had tried to build its own broadcasting platform but encountered some difficulties. The setback is another challenge for Baidu’s efforts to keep up with newcomers like ByteDance in the field of online entertainment, having launched relatively late in newer areas such as live streaming. Joyy will now seek legal advice.

Chinese regulatory authorities tighten the reins The failed takeover makes one thing clear: Beijing has tightened its grip in recent years. The Xi Jinping government has been trying to combat gambling addiction for some time, including with controls for minors in online entertainment and freezing approvals for new game titles. China’s top gambling regulator released a draft of rules last month to further restrict the time and money spent on games.