Baidu Aims to Sell iQiyi Stake at $7 Billion Value, Reuters Says

(Bloomberg) -- Baidu Inc. is in discussions to sell its majority stake in iQiyi Inc. in a deal that could value the Netflix-style streaming service at $7 billion, Reuters reported, citing people with knowledge of the matter.

Most Read from Bloomberg

• US Futures Gain With European Stocks; Dollar Slips: Markets Wrap

• Biden Says US Recession Avoidable After Call With Ex-Treasury Secretary Summers

• Putin May Win in Ukraine, But the Real War Is Just Starting

• Housing’s Slowdown Has Economy on the Edge

• Ruble Soars to 7-Year High Prompting Debate Over Targeting Rate

Baidu intends to offload its 53% stake in a unit it’s decided is no longer core to its business, Reuters reported. The iQiyi shares have drawn early interest from several financial sponsors and state-owned companies, the news agency added. A deal could value iQiyi as a whole at roughly $7 billion, Reuters reported.

China’s search leader is delving deeper into areas it’s identified as longer-term growth drivers, including AI and autonomous driving, as its core ad business decelerates. IQiyi said in a statement that the idea of a stake sale is “purely market rumor.”

Most Read from Bloomberg Businessweek

• Ethereum Mining Is Going Away, and Miners Are Not Happy

• Hell Is a Cruise Ship at the Beginning of the Pandemic

• Adults Who Love Toys? The Toy Industry Loves Them, Too

• Sheryl Sandberg’s Wedding Expenses Are the Least of Facebook’s Sheryl Sandberg Problems

©2022 Bloomberg L.P.