Beijing takes the joy out of China tech M&A

  • 9/27/2021
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HONG KONG, Sept 27 (Reuters Breakingviews) - What is the fun in being a Big Tech boss if you can"t swallow smaller peers? Baidu"s (9888.HK) Robin Li, who runs the $55 billion search-engine operator, is facing resistance read more from anti-trust authorities over the $3.6 billion purchase of a local video app from streaming specialist Joyy. If derailed, it would be the second major deal flop since Tencent"s (0700.HK) unsuccessful merger of two e-sports companies in July. Regulators may stall the approval process rather than try to find a legal block: Neither Joyy"s domestic short video-app nor Baidu"s own offering has made a dent against TikTok-owner ByteDance or Kuaishou (1024.HK), so there"s little monopolistic threat. It"s more likely that Beijing is sending a fresh signal to web giants that it doesn"t want them to get any bigger. A handful of other deals, including JD.com’s (9618.HK) investment in an electronics-components trading business, are under scrutiny too. It wouldn’t be so bad if executives knew they could build size organically but it’s unclear if China’s regulators are opposed to size or just the manner in which it is attained. (By Robyn Mak) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: Omarova is dubious choice for U.S. bank cop read more China ban shows crypto cons and a pro read more Antin IPO will inspire private equity copycats read more

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