Chinese language Internet search provider Baidu has increased its holding in China-based online video company iQiyi to a majority stake, acquiring shares from private equity firm Providence Equity Partners for an undisclosed sum.
iQiyi was launched in April 2010, with Baidu and Providence investing that year, when it was known as Qiyi, before changing its name in November 2011.
iQiyi will continue to be a separate brand with its existing management team.
Robin Li, chairman and CEO of Baidu, said: “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.”
Li added, “I want to extend my appreciation to the Providence team for their contribution to and support of iQiyi over the last two-and-a-half years.”