In response, Nasdaq-listed Joyy is seeking legal advice and considering all available options. The failed acquisition comes amid increased regulatory scrutiny of China's online entertainment sector. Despite this setback, Baidu has been focusing on its investments in artificial intelligence, with its Hong Kong-listed shares performing better than the Hang Seng Tech Index.
Key takeaways:
- Baidu, led by CEO Robin Li, has terminated its $3.6 billion bid to acquire Joyy's Chinese live-streaming platform, YY Live, due to regulatory issues.
- The company had already paid $1.9 billion towards the deal, which was first announced in November 2020 and was expected to diversify Baidu's revenue sources.
- In response to Baidu's termination, Joyy is seeking legal advice and considering all available options.
- Despite the setback, Baidu continues to focus on its investments in artificial intelligence, with the company having invested $3 billion in AI research and development between 2014 and 2017.