Core Viewpoint - Baidu has finalized the acquisition of YY Live from Huya Group for $2.1 billion, significantly lower than the initial $3.6 billion agreement, marking the end of a protracted negotiation process lasting over four years [1][3]. Group 1: Acquisition Details - The acquisition agreement was first announced in November 2020, with Baidu planning to acquire YY Live, which includes various platforms such as the YY mobile app and website [2]. - The deal faced multiple delays, with Baidu initially expecting to complete the acquisition in the first half of 2021, but it was not finalized until now [2][3]. - The final purchase price of $2.1 billion represents a reduction of $1.5 billion from the original agreement, reflecting changes in market conditions and strategic focus [3]. Group 2: Financial Implications - Baidu will receive approximately $1.6 billion that was previously held in escrow, which will be reinvested into its cloud and AI infrastructure [1][4]. - The acquisition allows Baidu to refocus its strategy on AI and cloud computing, as it aims to leverage YY Live's platform for AI applications [3][4]. Group 3: Company Performance - Baidu reported a total revenue of 133.1 billion yuan for the previous year, with a net profit of 23.4 billion yuan, indicating a year-on-year growth of 21% [4]. - Baidu's AI-related revenue from its cloud services has seen a nearly threefold increase, with a 26% year-on-year growth in the fourth quarter [5].
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