Davis Polk is advising Baidu, Inc. in connection with its $370 million acquisition of the online video business of PPS. The definitive agreement was signed on May 7, 2013. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2013.
Upon completion of the transaction, PPS’s online video business will be merged with Baidu’s own video platform iQiyi. The combined entity will become China’s largest online video platform by number of mobile users and video viewing time. PPS will continue to operate as a sub-brand of iQiyi.
Baidu is the leading Chinese-language Internet search provider. Baidu’s ADSs currently trade on the Nasdaq Global Select Market. iQiyi.com is a leading online video portal in China that was founded by Baidu. PPS was founded in 2005 and ranks number one in its category by desktop client installations and mobile apps.
The Davis Polk corporate team includes partners Miranda So and Howard Zhang and registered foreign lawyer Ruomu Li. Partner Frank J. Azzopardi and associates Pritesh P. Shah and Nicholas D. DiChiara are providing intellectual property advice. Partner Kathleen L. Ferrell and associate Craig A. Phillips are providing tax advice. Members of the Davis Polk team are based in the Beijing, Hong Kong and New York offices.
