The leading Chinese-language Internet search provider, Baidu, announced an agreement to purchase a majority stake in online video platform iQiyi.com. Details of the transaction were not disclosed.
The transaction is expected to be completed in the fourth quarter this year where iQiyi will be consolidated into Baidu’s financial statement. Upon completion, iQiyi will continue to operate as a separate brand with its existing management team. iQiyi was launched in April 2010 as Qiyi until its name change in November 2011. It is reportedly the first online video platform in China to focus exclusively on fully licensed, high-definition and professionally-produced content.
Source: Business Strategies Group Hong Kong – www.bsgasia.com