Baidu Finalizes $2.1 Billion Acquisition of YY Live: A Game-Changer in China’s Live-Streaming Market
- GordonGekko
- Feb 26
- 2 min read
In a strategic move to strengthen its presence in China's booming live-streaming industry, Baidu has officially acquired JOYY’s YY Live for $2.1 billion.
This acquisition, initially announced in 2020 for $3.6 billion but delayed due to regulatory hurdles, marks a significant expansion for Baidu beyond its core search engine business.
Why Did Baidu Acquire YY Live?
Live-streaming is a key driver of digital engagement in China, with platforms like Douyin (TikTok’s Chinese counterpart) and Kuaishou dominating the space. By integrating YY Live into its ecosystem, Baidu aims to capture a larger share of the lucrative content and social media market.
Baidu has long been expanding into artificial intelligence (AI) and cloud services, but this acquisition signals a stronger focus on user-generated content. With YY Live's vast audience and monetization models, Baidu can leverage AI-driven recommendations to enhance engagement and advertising revenue.
The Road to the Acquisition
Baidu initially agreed to acquire YY Live from JOYY in 2020 for $3.6 billion. However, heightened scrutiny from China’s regulators led to the deal being put on hold. In early 2024, Baidu officially terminated the agreement but resumed negotiations under revised terms.
In February 2025, the deal was successfully finalized for a reduced price of $2.1 billion. The completion releases $1.6 billion from escrow, providing Baidu with fresh capital for further investments.
How Does This Impact Baidu and JOYY?
For Baidu: YY Live provides a ready-made live-streaming infrastructure, boosting its video content strategy and expanding its AI-driven advertising business.
For JOYY: The sale allows JOYY to focus on its global platforms, such as Bigo Live and Likee, while reducing exposure to China's stringent regulations.
What’s Next for Baidu?
Baidu’s expansion into live-streaming positions it to challenge Tencent, ByteDance, and Kuaishou in the content space. With AI-powered recommendations and a vast content library, Baidu is set to become a major player in China’s entertainment and e-commerce-driven live-streaming market.
