Baidu scraps $3.6 billion deal for JOYY's China live streaming unit

has terminated its planned $3.6 billion acquisition of Nasdaq listed Inc's live streaming business in China, the company said on Monday in a filing with the Hong Kong stock exchange. The deal's failure casts a shadow on search engine giant Baidu's ambition to diversify its revenue. The company proposed to acquire JOYY's Chinese live streaming business, in 2020.

Baidu affiliate Moon SPV Ltd terminated the share purchase agreement with JOYY because the conditions of closing the deal it provided for "had not been fully satisfied" as of the end of 2023, Baidu said in an exchange filing on Monday. The conditions included obtaining necessary regulatory approvals from governmental authorities, the company said.

Reuters in 2021 reported China's antitrust regulator was unlikely to approve the deal as Beijing sought to increase control of companies collecting large amounts of consumer data and break down monopolistic practices. JOYY is a leading Chinese and has expanded globally, with global monthly active users reaching 277 million.

In a separate statement release late on Monday, JOYY said it is seeking legal advice and will consider all options regarding the deal cancellation. Stay on top of and that matters. to our daily newsletter for the latest and must read tech news, delivered straight to your inbox..