Baidu receives Qiyi bid at $2.8bn valuation

Chinese search giant Baidu has received a buyout offer for its video site Qiyi, which values the service at US$2.8 billion.

In a statement, Baidu said it had received a non-binding proposal from Baidu chairman and CEO Robin Yanhong Li and Qiyi CEO Yu Gong for the 80.5% share in Qiyi that is owned by Baidu.

“Pursuant to the non-binding proposal, the buyers expect that Qiyi will remain a strategic partner of Baidu after the consummation of the transaction and enter into business cooperation agreements with Baidu,” said the internet search company.

Baidu has formed a special committee comprising three independent directors that will now evaluate the deal, with the help of financial and legal advisors.

“There can be no assurance that any definitive offer will be made, that any legally binding agreement will be executed or that this or any other transaction will be approved or consummated,” said the company.  

“Baidu does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.”