Chinese search engine giant Baidu may divest its 53% stake in iQIYI, a Netflix-like streaming service, in a mooted $7 billion deal. It could attract an unconventional queue of bidders, including state companies, says ywchen1
Register now for FREE unlimited access to Reuters.comBut that low price might also indicate the smaller number of potential buyers. The State Administration for Market Regulation handled 175 monopoly cases in 2021 – a year-on-year increase of 60%. It handed a record $2.8 billion fine to Alibaba for abusing its dominant market position, and blocked Tencent’s plan to merge two video game streaming websites it controls.
The deal has drawn interest from Hong Kong-based private equity firm PAG, per Reuters, and from government telecommunications utility China Mobile , . The latter is a particularly compelling bidder. It has its own streaming startup Migu and a slew of broadcasting deals including one with the U.S. National Basketball Association. As of March it was sitting on a 283 billion yuan cash war chest. Private internet giants’ pain could well be state-owned companies’ gain.