Deals
Baidu Is Said to Discuss Selling Waimai Food Unit at a Discount
- It’s said to be in talks to sell to an Alibaba-backed rival
- Waimai may go for under half its previous $2.5 billion value
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Baidu Inc. is planning to sell its money-losing food delivery unit at a discounted price to a competitor backed by Alibaba Group Holding Ltd., a person familiar with the matter said.
The business could be sold to Ele.me at a valuation that’s less than half the $2.5 billion it fetched during its last round of fundraising, the person said, asking to not be identified discussing a private matter. Selling Waimai would put an end to heavy cash losses for Baidu, China’s biggest search engine, as it struggles in China’s competitive on-demand services market and shifts its bets to artificial intelligence, the person said.