Baidu Takes Majority Stake in iQiyi

Baidu, 11/02/12

Chinese internet company Baidu (Nasdaq: BIDU) today announced that it has reached a definitive agreement with Providence Equity Partners pursuant to which Baidu will purchase shares of joint-venture online video site iQiyi held by Providence for an undisclosed amount. Baidu is one of the original investors in iQiyi. Upon completion, Baidu will have a "substantial majority stake" in iQiyi.

Baidu and Providence expect the transaction to close in the fourth quarter of 2012, subject to customary closing conditions. Upon completion of the transaction, iQiyi will be consolidated into Baidu's financial statements. iQiyi will continue to operate as a separate brand with its existing management team.

According to Baidu CEO Robin Li, online video is becoming a "key strategic vertical for Baidu as user numbers and time-spend continue to increase exponentially."

Keywords: Robin Li Internet online video Baidu Providence Equity BIDU iQiyi investment

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