Baidu Receives Non-Binding Proposal To Acquire Qiyi.com, Shares Gain 4%

Shares of

were trading higher by more than 4 percent early Friday morning after the company

to fully acquire Qiyi.com. Baidu already owns approximately 80 percent Qiyi, a China-based internet video site. Qiyi approached Baidu and proposed to acquire all the outstanding shares it doesn't already own in a deal that values the company at $2.8 billion. Baidu noted in its press release that Qiyi will remain a "strategic partner" of Baidu but added that it can not make any assurances it will acquire the remainder of the company. The company has formed a special committee of independent directors to evaluate the proposal.