(Bloomberg) — Baidu Inc. is in discussions to sell its majority stake in iQiyi Inc. in a deal that could value the Netflix-style streaming service at $7 billion, Reuters reported, citing people with knowledge of the matter.
Baidu intends to offload its 53% stake in a unit it’s decided is no longer core to its business, Reuters reported.
The iQiyi shares have drawn early interest from several financial sponsors and state-owned companies, the news agency added. A deal could value iQiyi as a whole at roughly $7 billion, Reuters reported.
China’s search leader is delving deeper into areas it’s identified as longer-term growth drivers, including AI and autonomous driving, as its core ad business decelerates.
IQiyi said in a statement that the idea of a stake sale is “purely market rumor.”
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