Baidu Inc. (Nasdaq: BIDU) has acquired the online video business of PPS, a technology company, for $370 million.
The deal is expected to close in the second quarter. PPS’ online video business will be merged with Baidu’s video website, iQiyi. The combined sites will create China’s largest online video service, according to the company.
Providence Equity Partners, a private equity firm based in in Providence, R.I., held a stake in iQiyi, but it sold it back to Baidu in a deal announced in November.
Beijing-based Baidu is a Chinese-language Internet search engine. IQiyi is an advertising-supported online television and movie site that focuses on licensed, professionally produced video.
PPS develops online video services, as well as desktop software and mobile applications.
Law firm Davis Polk & Wardwell LLP advised Baidu on the deal with a team of partners that included Miranda So, Howard Zhang and Frank J. Azzopardi. The team also included registered foreign lawyer Ruomu Li, as well as associates intellectual property specialists Pritesh Shah and Nicholas DiChiara.
Cadwalader Wickersham & Taft LLP is advising PPS.