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 BIDU is in talks to acquire the Chinese business of Joyy Inc 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 HUYA to Tencent Holdings 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.

Posted In: M&ANewsGlobalMoversMediaTrading IdeasChina
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