Baidu will divest global ad tools business
Baidu reports it will strip its worldwide promotion and instruments business Global DU business.
After the fulfillment of the exchange, Baidu will claim around 34% of Global DU's exceptional offers and won't have powerful control.
The exchange is required to shut in Q3.Baidu announces it will divest its global ad and tools business Global DU business.
After the completion of the transaction, Baidu will own about 34% of Global DU’s outstanding shares and won’t have effective control.
The transaction is expected to close in Q3.
Shares of Baidu Inc. BIDU, -5.29% are up 1.1% in premarket trading after the company said it had reached agreements pertaining to the divestiture of its ad and tools business, known as its Global DU business. "We have been able to build global adoption of DU ads and tool apps through Baidu's strong technological team. Upon this divestiture, the Global DU business will have more autonomy and agility in its operation and will receive a cash injection to further support the growth of its business