Chinese online video industry witnessed another blockbuster deal. On May 7 Baidu announced a $ 370 million acquisition of the PPS video services which will be merged into its video business Iqiyi.com. Upon completion of the merger, Gong Yu will serve as CEO of new Iqiyi.com to be responsible for the new unified management. PPS founder Zhang Hongyu, Xu Weifeng will serve as co-president in charge of new business development of PPS.
Baidu Enterprise Development Department General Manager Tang HeSong said: “Economies of scale and mobility will be the core elements of the Video business. Baidu’s acquisition of PPS, with the integration of resources of PPS can enhance the competitiveness of Iqiyi.com.”
Iqiyi.com CEO Gong Yu pointed out that acquisition of Iqiyi.com and PPS will increase market concentration, playing a positive role for the healthy development of China’s online video industry with great synergies arising on the consolidation. Iqiyi.com and PPS owned gene of technology, and will lay a solid foundation for the realization of Iqiyi.com into a technology company media gene.
Source: 腾讯科技 (Tencent Technology)