Chinese search engine giant Baidu has terminated its acquisition of Joyy Inc., the parent company of live-streaming platform YY Live, leading to discussions regarding the next steps for both companies.
In November 2020, Baidu set out to acquire Joyy Inc.'s domestic video business for US$3.6 billion (25.67 billion yuan).
The decision to terminate the acquisition comes after Joyy Inc. faced scrutiny from Muddy Waters Research, a prominent short-selling institution, alleging that 90 percent of YY Live's reported live streaming revenue was inaccurately represented.
The process encountered delays, with reports surfacing of competition between Baidu Live and YY Live.
Amid Baidu's streamlining efforts and substantial layoffs, the acquisition has been officially terminated.
With both sides having invested so much, the termination raises questions about the future strategies and directions for both Baidu and Joyy Inc.