Communication Author: Chendi Qian Editor: Luke Sheehan Nov 18, 2020 05:41 AM (GMT+8)

This USD 3.6 billion deal mainly focuses on YY's mature livestreaming system.

Image credit: Sulastri Sulastri/Shutterstock

On November 17, Baidu announced its unexpected third quarter financial result and a USD 3.60 billion deal for acquring YY Live, a major Chinese video-based social network and belonging to JOYY.

According to a statement, Baidu has wholly acquired JOYY's domestic livestreaming business (YY Live) for approximately USD 3.60 billion. A Baidu executive stated that Baidu mainly values  YY's mature livestreaming system.

At the same time, Baidu's third-quarter revenue performance beats analyst estimation. According to the financial report, the company achieved revenue of CNY 28.20 billion (USD 4.29 billion); net profit of CNY 13.70 billion (USD 2.09 billion), exceeding analyst estimate average by 56%.

Baidu's core business revenue was CNY 21.40 billion (USD 3.26 billion), which was the main driving force for Baidu's revenue growth. The adjusted EBITDA margin of its core business reached 46%, a record high.

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