Chinese search engine Baidu has acquired the online video business of internet video provider PPS for $370m.
The acquisition is expected to be completed in the second quarter of 2013, the Chinese search engine firm will consolidate the PPS online video business into its own video platform, iQiyi.
iQiyi CEO Gong Yu said the merger of iQiyi and PPS’s online video business is a major step towards 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," Yu said.
"It will also deliver better marketing value and a wider range of options for advertisers.
"The merger of iQiyi and PPS — both companies with strong technology DNA — lays a solid foundation for iQiyi to become a great technology company with strong media DNA as well."
The consolidated unit is anticipated to become China’s largest online video platform by number of mobile users and video viewing time.
PPS founder and chairman Zhang Hongyu said: "We will strive to maximise the value of our combined resources and integrated teams, and we will jointly contribute to the progress and maturation of China’s video industry."
Baidu also revealed that upon the acquisition, Yu will continue to remain as CEO of iQiyi, while Zhang Hongyu and PPS president Xu Weifeng will serve as co-presidents at iQiyi, and will be responsible for the PPS sub-brand and new business development.
This article is from the CBROnline archive: some formatting and images may not be present.
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