China’s Baidu has reported 3rd-quarter revenue above market expectations and has said that it will purchase JOYY ‘s video-based live streaming business in China for 3.6 billion dollars.
The firm has said this via the deal it targets to diversify its income source, the bulk of which comes from advertisement sales on its core search engine platform.
Baidu’s vibrant mobile ecosystem allows the rapid growth of its non-advertising income by snowballing log-in users and expanding offerings such as membership, live streaming, and online games which the CEO of Baidu revealed in a statement. The company has benefited from higher-paid subscribers on iQIYI and retrieval in ad spending by industries on its core search engine platform in the quarter.
Image from Baidu
As China’s economy slowly comes out of the COVID-19 slump, ad spending by businesses has further picked up from their lows during the pandemic’s peak. In the month of September, China’s industrial output rose quicker than desired and retail sales increased. The company said it wishes that the present quarter revenue is amid 28.6 to 31.3 billion Chinese Yen as compared with an estimated 28.98 billion Chinese Yen.
Subscribers for iQIYI touched 104.8 million in the month of September and membership revenue rose 7% from a year before. Baidu’s Netflix-like service is in the middle of a probe by the United States Securities and Exchange Commission related to allegations of inflating user numbers, revenue, and the costs it pays for content.