updated 07:17 pm EST, Sun November 4, 2012
Baidu buys Providence Equity's share of video streaming site
Chinese Internet search giant Baidu announced last week that it had reached an agreement with Providence Equity Partners to purchase the equity firm's share of video streaming site iQiyi. The search company's announcement did not disclose the financial details of the deal. The acquisition of Providence's stake in iQiyi will give Baidu a substantial majority stake in the company.
iQiyi was launched in April of 2010 as the first Chinese video platform with an exclusive focus on high-quality, professionally-produced content. August of this year saw iQiyi taking the number one spot in online video in China in terms of average user time spent on the site and number two in terms of total monthly time.
The transaction is expected to close in the fourth quarter of 2012. The closure of the deal will see iQiyi consolidated into Baidu's financial statements, though the company will retain its existing management team and will operate as a separate brand within Baidu.