According to an insider familiar with Baidu, the Nasdaq-listed video game company Perfect World Entertainment has bought Baidu’s literature subsidiary for RMB one billion (USD 152.1 million). Reportedly, the deal is completed, and Baidu will retain a 20% share.
Interestingly, Baidu had initially bought the literature website Zongheng.com from Perfect World in 2013; this, together with several other platforms, became Baidu Literature. Zongheng.com was purchased with RMB 191.5 million, and Baidu Literature was sold for RMB one billion.
Baidu Literature was officially established in 2014, and was supposed to integrate with other resources of Baidu, ranging from China’s largest communication platform, Baidu Tieba, to games, music and videos, in order to form a complete value chain.
However, the integration did go well. A widespread rumor arose last June that Perfect World was buying back the literature subsidiary to rebuild its business of online literature.
Baidu Literature may be later known as another name, the insider said.
(Top photo from Baidu Images)