On January 1, 2024, Baidu announced that its affiliated company Moon SPV Limited had terminated the Share Purchase Agreement entered into by Moon SPV Limited, Baidu (Hong Kong) Limited, JOYY Inc., and other related parties on November 16, 2020, as amended or supplemented in the future, through the exercise of contractual rights.
Baidu stated that according to the previously signed Share Purchase Agreement, Baidu (Hong Kong) Limited agreed to purchase from JOYY and JOYY agreed to sell JOYY's domestic video entertainment live streaming business (YY Live) in China to Baidu (Hong Kong) Limited. However, the share purchase agreement stipulates that the delivery of the proposed acquisition must meet certain prerequisites, including obtaining necessary government regulatory approvals and other conditions, and if the proposed acquisition is not delivered before the final deadline, both the buyer and seller have the right to terminate the share purchase agreement.
As of December 31, 2023, which is the final deadline, all the delivery prerequisites stipulated in the share purchase agreement have not been fully met. Baidu stated that Moon will seek to negotiate with Huanju Group on the future arrangements of the transaction after terminating the equity acquisition agreement and explore reasonable solutions.
Regarding Baidu's termination of its purchase of YY Live, Huanju Group also announced that the sale of YY Live to Baidu was basically completed on February 8, 2021, and certain matters still need to be completed in the future. However, Baidu claimed in the notice that it had exercised its right to terminate the share purchase agreement and cancelled the transaction. In this regard, the company is seeking legal advice and will consider all options it can take in response to Baidu's notice.
According to data, on November 17, 2020, Huanju Group announced that it had signed an agreement with Baidu to acquire YY Live, a subsidiary of Huanju, for approximately $3.6 billion in cash, including but not limited to YY mobile applications, YY.com website, and YY PC. On February 8, 2021, Huanju Group announced that the transaction to sell YY Live to Baidu has been basically completed.