News this week: The leading Chinese-language Internet search provider, Baidu
Inc., announced the acquisition of the online video business of PPS, a leading Internet video provider in China.
The transaction is expected to close in the second quarter of the year at the
price of US$370 million.
Upon completion, the online video business of PPS will be
merged with Baidu’s video platform, iQiyi,
where PPS will continue to operate as a sub-brand. According to Baidu, the
merger will create China’s largest online video platform by number of mobile
users and video viewing time. Gong Yu will continue to serve as CEO of iQiyi, while
Zhang Hongyu and PPS president Xu Weifeng will serve as co-presidents at iQiyi.
They will be responsible for the PPS sub-brand and new business development.
Gong Yu said, “The merger of iQiyi and PPS’s online video
business is a major step toward consolidation in the industry and will
contribute to the development of China’s Internet video industry. The merger
will generate significant synergies, and will provide for an improved user
experience as well as more and better content. It will also deliver better
marketing value and a wider range of options for advertisers.”
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