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Baidu Buys up Shares of iQiyi.com from Providence Equity Partners

RickMartin

Baidu’s (NASDAQ:BIDU - News) CEO Robin Li, in a statement announcing that his company has purchased shares of its online video site iQiyi.com from Providence Equity Partners for an undisclosed sum, giving it a ‘substantial majority stake’:

Online video is a key strategic vertical for Baidu as user numbers and time-spend continue to increase exponentially, underscoring the tremendous potential in the sector. […] We are very pleased with the progress iQiyi has made and have confidence that iQiyi’s management will continue to grow its leading position. Going forward, we see users spending more and more time on online video and we will integrate iQiyi’s content more seamlessly into Baidu’s overall search and mobile services.

Baidu established the Qiyi subsidiary in early 2010, and Providence invested $50 million into the venture not long after.