Alibaba Group and Tencent have each held separate talks with Baidu to acquire a controlling stake in video streaming service iQIYI, people with knowledge of the matter told Reuters.
But the discussions have stalled with little hope of recommencing soon as they balk at a valuation of around US$20 billion demanded by Baidu and as both companies, which have their own video streaming services, face heightened scrutiny by China’s antitrust regulators, two people said.
Another Chinese tech giant, TikTok owner ByteDance, has also internally looked at the possibility of acquiring a controlling stake in iQIYI, three sources said.
Considered China’s equivalent to Netflix, Nasdaq-listed iQIYI has a market capitalization of US$16.4 billion, which values Baidu’s 56.2% stake at about US$9.2 billion.
Tencent, whose interest in iQIYI was first reported by Reuters in June, believes the company is worth about half of what Baidu wants, said two of the people.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Turkey Hits Meta with $37.20 Million Fine Over Data-Sharing Practices
May 8, 2024 by
CPI
Google Seeks Dismissal of UK Suit Over Alleged Anti-Competitive Practices
May 8, 2024 by
CPI
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI