JOYY Closes Sale of YY Live

Rhea-AI Summary

JOYY Inc. (NASDAQ: YY) announced the completion of the sale of its YY Live business to Baidu, Inc. (NASDAQ: BIDU) for approximately US$2.1 billion in cash. The transaction involved the video-based entertainment live streaming business in mainland China previously owned by JOYY.

The company had already received approximately US$1.86 billion in February 2021, and on February 25, 2025, JOYY received the remaining US$240 million in additional cash consideration, finalizing the deal.

Positive

• Completed sale of YY Live for US$2.1 billion in cash
• Received final payment of US$240 million
• Transaction provides significant liquidity to JOYY

Negative

• None.

Insights

Financial Analyst

JOYY has finally completed the long-awaited sale of YY Live to Baidu for $2.1 billion in cash, receiving the final $240 million payment today after the initial $1.86 billion payment in February 2021. This transaction's completion marks a watershed moment for JOYY, as the sale amount represents approximately 78% of the company's current $2.7 billion market capitalization.

This deal fundamentally transforms JOYY from its origins as a China-focused live streaming platform into a company now primarily focused on international markets through its Bigo Live, Likee, and Hago platforms. The nearly four-year gap between initial payment and final closing likely reflects the regulatory complexities and changing tech landscape in China during this period.

From a financial perspective, this cash infusion dramatically strengthens JOYY's balance sheet and creates multiple strategic options. With approximately $2.1 billion in fresh cash against a $2.7 billion market cap, JOYY now has extraordinary financial flexibility. The company could:

• Initiate a substantial share repurchase program that could potentially retire 20-30% of outstanding shares, creating immediate shareholder value
• Establish a significant dividend program, potentially yielding 5-10% based on current market value
• Accelerate international expansion in markets outside China where regulatory headwinds are less severe
• Make strategic acquisitions to diversify beyond live streaming into adjacent digital entertainment categories

For investors, this transaction significantly reduces JOYY's risk profile by decreasing exposure to China's regulatory environment while providing substantial financial resources to navigate its transition to a global company. The market will now evaluate JOYY primarily on the performance of its international assets rather than its domestic Chinese business.

For Baidu, fully integrating YY Live strengthens its position against competitors like Tencent and ByteDance in China's fiercely competitive live streaming market, potentially creating cross-platform synergies with its search and AI capabilities.

The key question for JOYY investors now becomes: how effectively can management deploy this substantial cash position to generate shareholder returns in its transformed business model? With cash now representing a significant portion of JOYY's enterprise value, the market will be looking for clear capital allocation strategy in upcoming earnings calls.

SINGAPORE, Feb. 25, 2025 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a global technology company, today announced that JOYY entered into agreements with Baidu, Inc. (NASDAQ: BIDU) (“Baidu”) with respect to the sale of the video-based entertainment live streaming business in mainland China previously owned by the Company (known as YY Live), for an aggregate purchase price of approximately US$2.1 billion in cash. The Company previously received approximately US$1.86 billion in February 2021, and, today, the Company received additional cash consideration of approximately US$240 million.

About JOYY Inc.

JOYY is a leading global technology company with a mission to enrich lives through technology. JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, an instant messaging product, and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY’s ADSs have been listed on the NASDAQ since November 2012.

Safe Harbor Statement

This press release 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” and similar statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), 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 JOYY’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. Further information regarding these and other risks is included in JOYY’s filings with the SEC. All information provided in this press release is as of the date of this press release, and JOYY does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

JOYY Inc.
Jane Xie/Maggie Yan
Email: joyy-ir@joyy.com

ICR, Inc.
Robin Yang
Email: joyy@icrinc.com

FAQ

What was the total value of JOYY's YY Live sale to Baidu?

JOYY sold YY Live to Baidu for approximately US$2.1 billion in cash.

When did JOYY receive the final payment for the YY Live sale?

JOYY received the final payment of approximately US$240 million on February 25, 2025.

How much did JOYY (YY) initially receive from Baidu for the YY Live sale?

JOYY initially received approximately US$1.86 billion from Baidu in February 2021.

What business segment did JOYY sell to Baidu?

JOYY sold its video-based entertainment live streaming business in mainland China, known as YY Live.

How was the payment for YY Live structured?

The payment was structured in two parts: US$1.86 billion in February 2021 and the remaining US$240 million in February 2025.