Baidu was once known for its desktop search abilities. As the world continues to shift to mobile, the company has scrambled to stay competitive and maintain its reputation. In its most recent attempt at rejuvenating the organization, Baidu agreed to acquire Joyy Inc’s live-streaming business for China.
The Chinese Internet company said it will pay $3.6 billion in cash for Joyy’s YY Live and marks the businesses first step into the fast-growing digital video space. This deal is said to have the potential to help Baidu compete with some of these other live-streaming video platforms and begin to assert its dominance as a go-to Internet based business.
According to a staff memo viewed by Bloomberg News, Chief Executive Officer Robin Li stated “This is an offensive move after we made progress building our mobile ecosystem, Baidu will become one of China’s leading live-streaming platforms, taking another leap in our strategy of revenue diversification.”
Baidu has made numerous attempts to compete in the ever-changing world of online services. They’ve made investments in smartphone games to food delivery and yet nothing seems to get them on course for a big W. Will this most recent acquisition be the game changer Baidu has been searching for?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.