JOYY Shares Plunge Over Baidu's Takeover Concerns: Reuters

JOYY Shares Plunge Over Baidu's Takeover Concerns: Reuters
  • Chinese antitrust regulator could veto Baidu Inc's BIDU ambitious $3.6 billion acquisition of JOYY Inc's YY live streaming business YY Live, Reuters reports.
  • The approval amid Beijing's crackdown on gaming-related businesses and corporate expansion via deals could send a wrong signal to the market as per a source. The approval process will likely keep dragging on until the application lapses.
  • Baidu had not received any negative update from Chinese regulators regarding the deal. In early September, the State Administration for Market Regulation (SAMR) informed about conducting anti-monopoly reviews of 11 transactions, including Baidu's acquisition of YY Live.
  • JOYY's top two shareholders, Chairman David Li and Xiaomi Corp XIACF founder Lei Jun, aimed to take JOYY private as the U.S. market undervalued the firm.
  • Price Action: YY shares traded lower by 10% at $47 in the premarket session on the last check Friday.

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