“Baidu is nearing a deal to acquire Joyy’s Chinese operations for a deal worth US$3 billion to US$4 billion,” according to a
TechNode
report that cited local media
Jiemian
.

As part of the deal, Baidu will take over YY, Joyy’s livestreaming app, including its content operations, technology, and team, people familiar with the matter told
Jiemian . Both Joyy and Baidu declined
Jiemian ‘s requests for comment.

The development comes after reports emerged last week saying that YY was going to sell to Baidu. YY’s stock price surged to as much as 10% before trading closed on Friday. It closed at US$8513 an uptick of about 5.2%, with the company’s market value reaching nearly US$688 billion.

According to the  TechNode  report, Joyy is currently focused on expanding its global presence, with its overseas users already making up 91% of the company’s 457.1 million monthly active users. The deal allows Joyy to fully commit to its worldwide expansion plans and provides Baidu with the technology it needs to diversify into China’s livestreaming space.

The country’s livestreaming scene has grown steadily during the last three years. A recent report from the China Internet Network Information Center showed that livestreaming users in the country reached
560 million
in March 2020 increasing by 163 million since the end of 2018.

According to a Statista
report , Huya and YY were the market leaders in the Chinese livestreaming landscape in 2018 and 2019.