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Baidu (NASDAQ:BIDU) has withdrawn its $3.6 billion proposed takeover for JOYY’s (NASDAQ:YY) video-based entertainment live-streaming business in China after it missed the December 31 deadline to meet all closing conditions. The news sent JOYY (YY) sliding 11.8% in premarket trading on Tuesday.
The deal collapsed after “certain conditions” specified in a contractual agreement had not been fulfilled by the final deadline. Baidu’s (BIDU) affiliate company Moon SPV said in an exchange filing, including obtaining regulatory approvals.
Baidu (BIDU) intends to engage in talks with JOYY (YY) regarding the next steps after the deal’s termination.
The deal had been announced back in 2020, which would’ve included JOYY’s (YY) YY mobile app, YY.com website, and PC YY, as part of Baidu’s efforts (BIDU) to diversify away from advertising. The deal was previously expected to close in the first half of 2021.
JOYY (YY) confirmed the termination of the deal, adding that it would seek legal advice and will consider all options at its disposal in response to the notice.