Chinese Internet giant Baidu announced that it will terminate the acquisition of the plans for the acquisition of the Chinese live broadcast industry pioneers (Joyy) to live in China. The acquisition plan worth $ 3.6 billion (about S $ 4.756 billion) has failed.
Comprehensive Reuters and Viewpoint reports that Baidu on Monday (January 2) revealed in the announcement submitted to the Hong Kong Exchange that Baidu's subsidiary Moon SPV Limited exercise contract rightGroup's YY Live Equity acquisition agreement.Baidu is currently discussing the next arrangement after discussing the termination of the shares' purchase agreement.
According to the announcement, Moon signed an equity acquisition agreement with YY Live on November 16, 2020 on YY live broadcast business, and agreed that if the transaction and delivery was completed before the last period, the transaction, the transactionAny party has the right to terminate the agreement.
The announcement stated that as of December 31, 2023, the final deadline for the agreement, and the prerequisite for the prerequisite specified in the shares purchase agreement failed to meet.
According to the content of the agreement, the prerequisites that need to be satisfied to acquire the delivery of the delivery include: YY live broadcast is not affected by any major adverse effects, and the financial statements of YY live broadcast fairly reflect their operating performance and obtain the government in all major aspects.The necessary approval of the regulatory authorities, the reorganization steps of the Huanju Group to complete the YY live broadcast, and the 10 -year non -competitive commitment for the Huanju Group, they agree to compete with Baidu in some areas of Huanju Group's live broadcast business.
However, shortly after the acquisition was announced, the short-selling institution Hunshui Company in 2020 Queen YY Live "Doing automatic generation, false transactions and false users", and described Huanju Group as a "fraud technology company", which led to Huanju Group's stock price the biggest historical decline in historyEssence
Reuters reported in 2021 that China's antitrust regulatory agencies are unlikely to approve the transaction because the Chinese government is tightening the control of companies collecting a large amount of consumer data and breaking the monopoly behavior.
In another announcement announced by Huanju Group on Monday, the company is seeking legal suggestions and will consider all options to respond to the notice of Baidu's termination of acquisition transactions.
