BEIJING, Nov. 2, 2012 /PRNewswire/ -- Baidu Inc. (NASDAQ:
BIDU), the leading Chinese language Internet search provider, today
announced that it has reached a definitive agreement with
Providence Equity Partners ("Providence") pursuant to which Baidu will
purchase shares of iQiyi.com ("iQiyi") held by Providence for an undisclosed amount. Upon
completion, Baidu will have a substantial majority stake in iQiyi.
(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO
)
iQiyi, launched in April 2010 and
known as "Qiyi" until November 2011,
is the first online video platform in China to focus exclusively on fully licensed,
high-definition and professionally-produced content. In
August 2012, iQiyi was ranked as the
number one online video platform in China in terms of average time spent per user
and number two in terms of total monthly time spent, according to
iResearch, a China-based research
firm.
Baidu and Providence expect the
transaction to close in the fourth quarter of 2012, subject to
customary closing conditions. Upon completion of the transaction,
iQiyi will be consolidated into Baidu's financial statements. iQiyi
will continue to operate as a separate brand with its existing
management team.
"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," said
Robin Li, chairman and CEO of Baidu.
"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."
Mr. 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."
Dr. Yu Gong, founder and CEO of
iQiyi, added, "iQiyi has established a great business
foundation and strong brand recognition and we look forward
to leveraging our relationship with Baidu to further drive superior
user and advertising customer experience."
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best way for people to find information. In addition to
serving individual Internet search users, Baidu provides an
effective platform for businesses to reach potential customers.
Baidu's ADSs trade on the NASDAQ Global Select Market under the
symbol "BIDU". Currently, ten ADSs represent one Class A ordinary
share.
About iQiyi
iQIYI (iQIYI.COM), formerly known as QIYI, is China's leading advertising supported online
television and movie portal that focuses on fully licensed,
high-definition, professionally produced contents. The company was
invested by Baidu, Inc. and Providence Equity Partners in early
2010.
About Providence Equity Partners
Providence Equity Partners is the leading global private equity
firm specializing in equity investments in media, communications,
education, and information companies around the world. The
principals of Providence manage
funds with $27 billion in commitments
and has invested in more than 130 companies globally since the
firm's inception in 1989. Significant existing and prior
investments include ABTL (Indus Towers), Altegrity, AutoTrader.com,
Blackboard, Bresnan Communications, Com
Hem, Digiturk, Education Management Corporation, eircom,
ikaSystems, Grupo TorreSur, Hulu, Idea Cellular, Kabel Deutschland,
NEW Asurion, PanAmSat, ProSiebenSat.1, Study Group, TDC, TVB,
UFO Moviez, Univision, VoiceStream Wireless, Warner Music Group,
Wize Commerce, World Triathlon Corporation, and Yankees
Entertainment and Sports Network. Providence is headquartered in Providence, RI (USA) and also has offices in
New York, London, Hong
Kong and New Delhi. Visit
www.provequity.com for more information.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, quotations from management in this announcement, as
well as Baidu's strategic and operational plans, contain
forward-looking statements. Baidu may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts,
including statements about Baidu's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our growth strategies; our future business development,
including development of new products and services; our ability to
attract and retain users and customers; competition in the Chinese
and Japanese language Internet search markets; competition for
online marketing customers; changes in our revenues and certain
cost or expense items as a percentage of our revenues; the outcome
of ongoing, or any future, litigation or arbitration, including
those relating to intellectual property rights; the expected growth
of the Chinese language Internet search market and the number of
Internet and broadband users in China; Chinese governmental policies relating
to the Internet and Internet search providers and general economic
conditions in China, Japan and elsewhere. Further information
regarding these and other risks is included in our annual report on
Form 20-F and other documents filed with the Securities and
Exchange Commission. All information provided in this press release
and in the attachments is as of the date of the press release, and
Baidu undertakes no duty to update such information, except as
required under applicable law.
For investor and media inquiries, please contact:
Baidu:
China
Victor Tseng
Baidu, Inc.
Tel: +86-10-5992-7244
Email: ir@baidu.com
Nick Beswick
Brunswick Group
Tel: +86-10-5960-8600
Email: baidu@brunswickgroup.com
U.S.
Patricia Graue
Brunswick Group
Tel: +1-415-671-7676
Email: baidu@brunswickgroup.com
SOURCE Baidu, Inc.