Baidu Announces Acquisition of Providence Equity Partners' Stake in iQiyi

  Baidu Announces Acquisition of Providence Equity Partners' Stake in iQiyi

PR Newswire

BEIJING, Nov. 2, 2012

BEIJING, Nov. 2, 2012 /PRNewswire/ -- Baidu Inc. (NASDAQ: BIDU), the leading
Chinese language Internet search provider, today announced that it has reached
a definitive agreement with Providence Equity Partners ("Providence") pursuant
to which Baidu will purchase shares of iQiyi.com ("iQiyi") held by Providence
for an undisclosed amount. Upon completion, Baidu will have a substantial
majority stake in iQiyi. 

(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO )

iQiyi, launched in April 2010 and known as "Qiyi" until November 2011, is the
first online video platform in China to focus exclusively on fully licensed,
high-definition and professionally-produced content. In August 2012, iQiyi was
ranked as the number one online video platform in China in terms of average
time spent per user and number two in terms of total monthly time spent,
according to iResearch, a China-based research firm. 

Baidu and Providence expect the transaction to close in the fourth quarter of
2012, subject to customary closing conditions. Upon completion of the
transaction, iQiyi will be consolidated into Baidu's financial statements.
iQiyi will continue to operate as a separate brand with its existing
management team.

"Online video is a key strategic vertical for Baidu as user numbers and
time-spend continue to increase exponentially, underscoring the tremendous
potential in the sector," said Robin Li, chairman and CEO of Baidu. "We are
very pleased with the progress iQiyi has made and have confidence that iQiyi's
management will continue to grow its leading position. Going forward, we see
users spending more and more time on online video and we will integrate
iQiyi's content more seamlessly into Baidu's overall search and mobile
services."

Mr. Li added, "I want to extend my appreciation to the Providence team for
their contribution to and support of iQiyi over the last two-and-a-half
years."

Dr. Yu Gong, founder and CEO of iQiyi, added, "iQiyi has established a great
business foundation and strong brand recognition and we look forward to
leveraging our relationship with Baidu to further drive superior user and
advertising customer experience."

About Baidu

Baidu, Inc. is the leading Chinese language Internet search provider. As a
technology-based media company, Baidu aims to provide the best way for people
to find information. In addition to serving individual Internet search users,
Baidu provides an effective platform for businesses to reach potential
customers. Baidu's ADSs trade on the NASDAQ Global Select Market under the
symbol "BIDU". Currently, ten ADSs represent one Class A ordinary share.

About iQiyi

iQIYI (iQIYI.COM), formerly known as QIYI, is China's leading advertising
supported online television and movie portal that focuses on fully licensed,
high-definition, professionally produced contents. The company was invested by
Baidu, Inc. and Providence Equity Partners in early 2010.

About Providence Equity Partners

Providence Equity Partners is the leading global private equity firm
specializing in equity investments in media, communications, education, and
information companies around the world. The principals of Providence manage
funds with $27 billion in commitments and has invested in more than 130
companies globally since the firm's inception in 1989. Significant existing
and prior investments include ABTL (Indus Towers), Altegrity, AutoTrader.com,
Blackboard, Bresnan Communications, Com Hem, Digiturk, Education Management
Corporation, eircom, ikaSystems, Grupo TorreSur, Hulu, Idea Cellular, Kabel
Deutschland, NEW Asurion, PanAmSat, ProSiebenSat.1, Study Group, TDC, TVB,
UFO Moviez, Univision, VoiceStream Wireless, Warner Music Group, Wize
Commerce, World Triathlon Corporation, and Yankees Entertainment and Sports
Network. Providence is headquartered in Providence, RI (USA) and also has
offices in New York, London, Hong Kong and New Delhi. Visit www.provequity.com
for more information.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and similar
statements. Among other things, quotations from management in this
announcement, as well as Baidu's strategic and operational plans, contain
forward-looking statements. Baidu may also make written or oral
forward-looking statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not historical
facts, including statements about Baidu's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including
but not limited to the following: our growth strategies; our future business
development, including development of new products and services; our ability
to attract and retain users and customers; competition in the Chinese and
Japanese language Internet search markets; competition for online marketing
customers; changes in our revenues and certain cost or expense items as a
percentage of our revenues; the outcome of ongoing, or any future, litigation
or arbitration, including those relating to intellectual property rights; the
expected growth of the Chinese language Internet search market and the number
of Internet and broadband users in China; Chinese governmental policies
relating to the Internet and Internet search providers and general economic
conditions in China, Japan and elsewhere. Further information regarding these
and other risks is included in our annual report on Form 20-F and other
documents filed with the Securities and Exchange Commission. All information
provided in this press release and in the attachments is as of the date of the
press release, and Baidu undertakes no duty to update such information, except
as required under applicable law.

For investor and media inquiries, please contact:

Baidu:

China

Victor Tseng
Baidu, Inc.
Tel: +86-10-5992-7244
Email: ir@baidu.com

Nick Beswick
Brunswick Group
Tel: +86-10-5960-8600
Email: baidu@brunswickgroup.com

U.S.

Patricia Graue
Brunswick Group
Tel: +1-415-671-7676
Email: baidu@brunswickgroup.com

SOURCE Baidu, Inc.

Website: http://www.baidu.com
Website: http://www.provequity.com
 
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