Why iQIYI's Stock Is Trading Higher Today

iQIYI, Inc. IQ shares are trading higher following a report suggesting Tencent is seeking to become the company's largest shareholder.

'The potential deal would join two of China’s biggest media forces, with each boasting over 110 million paid subscribers at March-end, according to Reuters.

See Also: Chinese Video Streaming Company iQIYI Soars As Tencent Reportedly Eyes Majority Stake

iQIYI is an online entertainment service provider in China. It is primarily engaged in providing a variety of services encompassing internet video, live broadcasting, online games, online literature, animations, e-commerce and social media platform.

iQIYI's stock was trading up 25.01% at $23.94 on Tuesday at the time of publication. The stock has a 52-week high of $27.50 and a 52-week low of $14.51.