Rumor: Baidu Completes PPS Acquisition
Tencent Tech, 4/25/13
Chinese internet company Baidu (Nasdaq: BIDU) has neared completion of a deal to acquire Shanghai-based P2P video service provider PPS (PPStream) for between USD 350-400 mln, according to China Business News and Tencent Tech, quoting sources close to the matter.
PPS will reportedly be merged with the company's iQiyi online video subsidiary and operate on a dual-brand model.
A number of high-level PPS executives have reportedly spread the news of the company's acquisition by Baidu among lower-level employees, with one PPS executive sending an SMS to fellow employees instructing them to "tell everyone the good news, we have a backer."
At the end of 2012, Baidu issued USD 1.5 bln in corporate debt, a portion of which is believed to be used for the funding of its PPS acquisition.
Editor's Note: For more information on this topic, please see "Update: iQiyi to Acquire PPS," MD 3/25/13 and "Baidu Announces Pricing of USD 1.5 Bln Notes Offering," MD 11/20/12 issues.
Keywords: Internet online video PPStream Baidu Tencent P2P BIDU iQiyi M&A
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