Baidu has terminated its $3.6 billion deal with live-streaming company JOYY after three years of discussions.
The company's effort to expand its live-streaming services to China has collapsed after "certain conditions" have not been met by the Dec. 31 deadline, according to its Hong Kong Stock Exchange filing this Monday.
Among the reasons cited was failure to obtain "necessary regulatory approvals" from government officials.
Bailu is currently in discussion with JOYY on the proceeding steps following the termination of their deal, while JOYY is seeking legal services to consider future options on the deal cancellation.
Why is the JOYY Deal Important for Baidu?
The JOYY deal is supposed to be one of Bailu's biggest business deals as it aims to diversify its revenues, particularly in mainland China.
JOYY's live-streaming app, YY Live, recorded 277 global monthly active users last year. The streaming site recorded $567.1 million in revenues for the third quarter of 2023.
YY Live is similar to TikTok's live feature with users buying virtual gifts to performers and content creators.
With the increasing audience of TikTok all around the world, YY Live was supposed to be Baidu's response to create another domestic competitor for the app.
Reports of China's antitrust regulators disapproving the deal made news since 2021 as Beijing cracks down on business monopolies from private companies, according to Reuters.
More Live-Streaming Services Launch from China
While the Baidu-JOYY deal fell off, more live-streaming e-commerce platforms continue to trend from mainland China.
TikTok-like apps such as Kuaishou and Taobao Live have gained recognition from foreign countries over the past years as alternative shopping/live-streaming platforms.
At least thousands of products are being sold on both platforms every day with Kuaishou generating nearly $4 billion in last year's second quarter.
Both sites are unavailable for users in the US.
