Asia Express - East Asian ICT
Baidu to Acquire PPS' Online Video Business for US$370 Million
May 10, 2013

Chinese search engine Baidu said that it is acquiring PPS' streaming video business for US$370 million, as reported by China Daily on May 8. The buy-out is said to be one of Baidu's strategies to challenge the leadership of China's incumbent online video site Youku Tudou, which boasts over 100 million daily mobile video views. After the acquisition, PPS will integrate with Baidu's existing online video unit iQiyi, giving birth to China's largest online video platform by mobile user base and viewing time. PPS will focus on user-generated content while iQiyi's major business remains licensed videos bought from entertainment agencies. The transaction is expected to be concluded in the second quarter of 2013, according to the report.