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
Croatian Supermarket Chain Tommy Cleared to Acquire Brodokomerc Nova
Oct 13, 2024 by
CPI
X and Unilever Settle Antitrust Dispute, Continuing Partnership
Oct 13, 2024 by
CPI
Federal Judge Allows Antitrust Claims Against GoDaddy to Proceed
Oct 13, 2024 by
CPI
Court Ruling Opens Door for Microsoft to Sell Xbox Games on Android Without Google’s Cut
Oct 13, 2024 by
CPI
Realtors Appeal to Supreme Court Over DOJ’s Investigation into Antitrust Violations
Oct 13, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh