Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Ping An-Affiliated Fintech Firm OneConnect Raises Capital from New Share Sale As It Eyes Global Expansion
Pompeo Hints At ‘Broader’ Ban on Chinese Apps After Trump’s Executive Orders Targeting TikTok and WeChat
Trending in China: Merchants and Netizens Forced to Pick Sides in Fight Between Delivery Firms
Baidu-Backed Video Streamer iQiyi Probed by U.S. Regulator After Short Seller’s Report
AI Unicorn SenseTime Is Said to Mull Hong Kong, China IPO
Huawei Copies Korean Rivals by Manufacturing Own Display Driver Integrated Chips
JOYY’s Livestreaming Revenue Up 40% in Second Quarter of 2020
Trending in China: ‘Mukbangs’ Under Fire in China Amid High Level Food Waste Campaign
Trending in China: How Will the Chinese Diaspora Survive a WeChat Ban In U.S.?
Online Platform JD.com Buys into Bricks and Mortar Convenience Store Chain
China Unicom Profits Rise in First Half, Stock Soars
ByteDance in Talks with Indian Conglomerate Over TikTok Amid Layoff Fears
Alibaba’s Zhang Yong Tops 2020 Forbes China Best CEOs List
Trending: Family Feud Raises Big Questions Over Succession in China’s Multi-Million “Family” Businesses
Shanghai-Listed Foxconn Internet’s Cloud Service Sales Up 4% in First Half of 2020
U.S.-Listed Chinese Companies Nio and Huya Have Something to Cheer About
Apple Edges Huawei Out of No. 1 in Quarterly Tablet Shipments
Chinese Finance Platform Lufax Files for U.S. IPO of up to $3 Billion
China Mainland Leads U.S. in Fortune Global 500 Companies But Trails in Profitability
Trending in China: Tencent – Fighting Youth Unemployment or Enemy of Older Workers?
Shares of Baidu-Backed iQiyi Jump After Reuters Reports Tencent Seeking Majority Stake

By Ding Yi / Jun 17, 2020 02:03 PM / Business & Tech

Nasdaq-listed shares of Chinese video streaming service iQiyi closed up 25.9% on Tuesday after a Reuters report revealed that Tencent is looking to buy a stake in the company in which its rival Baidu is currently the majority shareholder.

On Tuesday, Reuters reported that Tencent wants to become the biggest shareholder in iQiyi in an effort to lower costs and reduce competition as both companies have seen growth in content expenses, citing two sources.

One of the sources told Reuters that Tencent has approached Baidu, which controls 56.2% of iQiyi and owns 92.7% of the company’s voting power, to buy a stake of as-yet undetermined size. The discussions and plans are understood to be at an early stage and subject to change.

Baidu declined to comment when approached by Caixin.

Over recent years, Tencent Video, the online video arm of Tencent, and iQiyi have competed for a leading position in China’s online entertainment market, with each boasting over 110 million paid subscribers as of the end of March 2020. Tencent Video and iQiyi as well as smaller rival, Alibaba-backed Youku, provide movies, drama series and reality shows, which are either made in-house or bought from content producers.

iQiyi said that its net losses widened to 2.9 billion yuan ($406 million) in the first quarter of 2020 from 1.8 billion yuan a year ago, even though it posted a year-on-year increase of 23% in the number of subscribers in the same period, according to its latest earnings report.

A tie-up between Tencent and iQiyi would give them more bargaining power when producing and purchasing content and lower their marketing costs spend, Reuters quoted a source as saying.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Chinese Video Giant iQiyi Hires Former Netflix Executive for Global Expansion


Share this article
Open WeChat and scan the QR code