Baidu Acquires Online Video Business of PPS for $370M

Baidu Inc.

, the leading Chinese language Internet search provider, today announced the acquisition of the online video business of leading Internet video provider PPS for US $370 million. Baidu and PPS expect the transaction to close in the second quarter of 2013, subject to customary closing conditions. Upon completion of the transaction, the PPS online video business will be consolidated into Baidu's financial statements. PPS's online video business will be merged with Baidu's own video platform iQiyi.  The combined entity will become China's largest online video platform by number of mobile users and video viewing time. PPS will continue to operate as a sub-brand of iQiyi. iQiyi CEO Gong Yu said: "The merger of iQiyi and PPS's online video business is a major step toward 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. 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