BIDU stock traded lower Tuesday, after Chinese internet giant Baidu called off a $3.6 billion deal to acquire Joyy's livestreaming business in China. Nasdaq-listed YY stock fell sharply on the news.
Baidu said closing conditions for the deal hadn't been fully satisfied, according to a regulatory filing by the company in Hong Kong Monday. The closing conditions included obtaining regulatory approvals from government authorities, the notice said.
"The company seeks to discuss with JOYY on the next steps following the termination of the share purchase agreement," Baidu's filing said.
On the stock market today, U.S.-listed BIDU stock fell 3.1% to close at 115.33. YY stock sank 15% to 33.88.
BAIDU Stock: Push For Livestreaming
Through a deal reached in November 2020, Baidu had planned to acquire the livestreaming business known as YY Live. Baidu Chief Executive Robin Li said at the time that the deal would "catapult Baidu into a leading platform for livestreaming," helping diversity its revenue.
The Singapore-based Joyy, meanwhile, said Monday it will seek legal advice and consider all options. Joyy operates several social media brands, including the Bigo Live streaming service, short-video platform Likee and the gaming-focused Hago.
BIDU stock had an up-and-down year in 2023 that finished with shares about 4% higher. Joyy's YY stock, meanwhile, gained about 20% in 2023.
