Renowned Chinese technology conglomerate, Baidu, recently announced its decision to abandon the $3.6 billion attempt to procure Joyy Inc’s popular live streaming arm, YY Live. It has consequently demonstrated the intricate dynamics involved with tech acquisitions, involving both regulatory and strategic aspects.
Expressed in a filing to the Hong Kong Stock Exchange, the cancellation of the deal came as a consequence of Joyy Inc’s inability to meet particular conditions tied to the deal, inclusive of securing the necessary regulatory approvals from governmental authorities before December 31 of last year. The condition was reportedly set by Baidu’s affiliate Moon SPV, who hold the rights to pull out of the deal under such circumstances.
The legal advice for this complex deal was delivered by the esteemed law firms of Skadden and Fangda. Notably, Skadden specifically provided counsel to Baidu, while also having a history of advising Joyy Inc during the company’s initial listing on Nasdaq in 2012.
For a deeper understanding of the conditions, procedures and legal intricacies entailed within this acquisition, readers are suggested to visit the full report on Law.com.