Baidu in talks to sell majority stake in China’s answer to Netflix: Report

China’s internet search engine giant Baidu Inc is in talks to sell its controlling stake in iQIYI Inc, China’s answer to Netflix, in a deal that could value all of iQIYI at about $7 billion, two people with knowledge of the matter said.

Baidu, which owns 53% of iQIYI and holds more than 90% of its shareholder voting rights, plans to sell all its holdings in the Chinese video streaming services firm, said those two people and another two sources familiar with the matter.

While China’s cinemas have struggled as COVID-19 lockdowns have restricted consumers’ mobility, its online video market is booming: 2022 revenue is set to climb to 163 billion yuan ($24 billion), up 17% year-on-year, according to domestic consulting firm Zhiyan.