Chinese search giant Baidu is in talks to sell all of the 53% stakes it holds in Chinese video streaming site iQiyi in a move to stay focused on AI and autonomous driving businesses, according to Reuters, citing people with knowledge of the matter. The Reuters source said Hong Kong-based equity firm PAG and Chinese telecom carrier China Mobile are among a number of potential buyers. iQiyi denied the report on Wednesday night but still recorded a 3% share drop on the news Thursday morning. This is not the first time Baidu has been reported as considering divesting from iQiyi. Local media ran similar stories in late 2020 and this February with potential bidders named as Tencent, Alibaba, ByteDance, and China Mobile. As the second-largest video streaming platform in China, iQiyi is in a highly-competitive and cash-burning industry where rivals are investing heavily in quality content in a bid to retain user attention. Similar to Netflix, iQiyi is facing challenges in monetizing its huge user base and has barely broken even in its 12-year history. [Reuters]
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