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Joyy Trades Higher On Possible M&A Deal With Baidu

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Joyy Trades Higher On Possible M&A Deal With Baidu

Social media and live video company Joyy Inc is trading higher on rumors that it could sell part of its business. 

What Happened: Chinese media outlet Jiemian reports that Baidu Inc (NASDAQ: BIDU) is in talks to acquire the Chinese business of Joyy Inc (NASDAQ: YY), according to Yahoo. 

The deal would exclude the company's international business, the report said. 

Related Link: Esports Platforms Huya, Douyu To Merge: What Investors Should Know

Why It’s Important: The deal would continue Joyy's expansion of its its international business and retreat in China. 

The company sold a large stake in esports streaming company Huya Inc (NYSE: HUYA) to Tencent Holdings (Pink: TCEHY).

Joyy Inc has over 457 million mobile monthly active users. The company’s Bigo overseas broadcast business has surpassed its Chinese business.

The company’s live streaming segment saw year-over-year growth of 6.0% to 41.2 million in the recent quarter. Outside of China, live streaming had 61.1 million users.

The international streaming services Bigo Live and HAGO saw year-over-year growth of 41.3% and 25.3%, respectively, in the recent quarter.

Bigo revenue grew 148.8% year-over-year, driven by livestreaming.

Baidu would gain a strong Chinese livestreaming company to boost its offerings in the country if it purchases the Joyy business segment. 

YY Price Action: Shares of Joyy were trading 4.37% higher to $88.85 at last check Monday. 

Joyy shares have gained 61% year-to-date.

 

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