Baidu Inc (ADR) (BIDU) May Be About to Sell Stake in Qiyi.com

Share

It appears that Baidu Inc (ADR) (NASDAQ:BIDU) is now considering the sale of their 80.5% stake in the Chinese Video site Qiyi.com, after receiving an offer from Robin Yanhong Li, chairman and CEO of Baidu, and the CEO of Qiyi, Yu Gong. The offer is said to be based on an enterprise value of the company worth $2.8 billion, and Baidu says that they have yet to make a decision on whether to sell the stake or not.

“The Board cautions Baidu’s shareholders and others considering trading in its securities that the Board recently received the non-binding proposal and no decisions have been made with respect to Baidu’s response to the proposal. 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 Baidu in an official statement.

Shares of Baidu Inc (ADR) (NASDAQ:BIDU) are trading up $6.79 or 4.81% in the pre-market this morning following this news. The stock decreased 1.79% or $2.57 during the last trading session, hitting $141.21. Approximately 1,413 shares traded hands. BIDU shares have declined 24.72% since July 9, 2015 and are currently downtrending. It has underperformed the S&P500 by 15.85%.

From a total of 12 analysts covering Baidu (NASDAQ:BIDU) stock, 5 rate it a “Buy”, 2 a “Sell”, and 5 a “Hold”. This means that 42% of the ratings are positive. The highest target price is $219 while the lowest target price is $150. The mean of all analyst targets is $191.43 which is 35.56% above today’s ($141.21) stock price. Baidu was the topic of 13 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. TH Capital maintained shares on October 27 with a “Buy” rating. Summit Research downgraded BIDU stock in a recent report from September 30 to a “Hold” rating. Finally, Oppenheimer maintained the stock with a “Outperform” rating in a report they issued on an August 3.

Baidu, Inc. is a Chinese-language Internet search well-known provider (ISP). The company has a market cap of $49.88 billion. Baidu serves three types of online participants, which include users, clients and Baidu Union Members. It has 26.88 P/E ratio. The Firm offers a Chinese-language search platform on its Website, Baidu.com.

#focuskw=’Baidu Inc (ADR) (NASDAQ:BIDU)’##metadesc=’It appears that Baidu Inc (ADR) (NASDAQ:BIDU) is now considering the sale of their 80.5% stake in the Chinese Video site Qiyi.com, after receiving an offer from Robin Yanhong Li, chairman and CEO of Baidu, and the CEO of Qiyi, Yu Gong. The offer is said to be based on an enterprise value of the company worth $2.8 billion, and Baidu says that they have yet to make a decision on whether to sell the stake or not. “The Board cautions Baidu’s shareholders and others considering trading in its securities that the Board recently received the non-binding proposal and no decisions have been made with respect to Baidu’s response to the proposal. 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 Baidu in an official statement.Shares of Baidu Inc (ADR) (NASDAQ:BIDU) are trading up $6.79 or 4.81% in the pre-market this morning following this news. ‘##metarobot=’index’##newskw=’Zafgen Inc positive news,Zafgen Inc – (NASDAQ:ZFGN),NASDAQ:ZFGN Analyst rating analysis,Stock Analysis,Outlook and potential,ZFGN Price change and trend,ZFGN stock update’##sitemap=’include’##skipsocial##stockticker=’NASDAQ:BIDU’#

COMMENTS: