China’s internet search engine giant Baidu Inc. is reportedly in talks to sell its controlling stake in iQIYI Inc., a Beijing-based online video platform, in a deal for up to $7 billion, according to sources familiar with the matter.
Sources told Reuter on Wednesday that Baidu aims to sell all of its assets in the Chinese video streaming services firm iQIYI, of which it owns 53% and has more than 90% of the voting rights.
The selling plan comes after Baidu no longer considers iQIYI as its core asset, instead it wants to put its resources into building its capital-intensive artificial intelligence and autonomous driving businesses.
iQIYI is a Nasdaq-listed company with a $4 billion market capitalization. Baidu plans to sell off the entire ownership in iQIYI for $7 billion, which would equal to $8.13 per share at the current market price of $4.67.