Joyy Inc.’s plans to sell its China-based livestreaming business to Baidu for $3.6 billion have collapsed after more than three years. The deal was initially announced in 2020 and would have allowed Joyy to offload its livestreaming business in China, which has faced regulatory crackdowns. Joyy had stopped including the China livestreaming business in its financial results in 2021 and was positioning itself as a Singapore-based livestreaming company. The collapse of the deal raises questions about the future of Joyy and highlights the regulatory risks of doing business in China. Investors reacted negatively to the news, with Joyy’s stock falling 17%. The company’s low valuation is partly justified by the weak performance of its non-China business, which saw a decline in revenue in the third quarter of 2023. Joyy may now need to find a new buyer for its China business, potentially at a lower price than the original deal with Baidu.
Joyy stuck with unwanted China business after $3.6 billion Baidu sale collapses – Baidu (NASDAQ:BIDU), DouYu Intl Hldgs (NASDAQ:DOYU)
