Baidu Inc. (BIDU) on Tuesday announced the acquisition of the online video business of Internet video provider PPS for $370 million. The combined entity will become China's largest online video platform by number of mobile users and video viewing time.
The PPS online video business will be consolidated into Baidu's financial statements on completion of the deal. PPS's online video business will be merged with Baidu's own video platform iQiyi, while PPS will continue to operate as a sub-brand of iQiyi. Subject to customary closing conditions, Baidu and PPS expect the transaction to close in the second quarter of 2013.
After the acquisition, Gong Yu will continue to be CEO of iQiyi. Zhang Hongyu and PPS president Xu Weifeng will serve as co-presidents at iQiyi, and will be in charge of the PPS sub-brand and new business development.
iQiyi CEO Gong Yu said, " The merger will generate significant synergies, and will provide for an improved user experience as well as more and better content. It will also deliver better marketing value and a wider range of options for advertisers. The merger of iQiyi and PPS -- both companies with strong technology DNA -- lays a solid foundation for iQiyi to become a great technology company with strong media DNA as well."
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