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technology news Beijing time on February 12th evening news, Baidu announced today that the board of directors of the company received the company chairman and CEO Robin Li and Iqiyi CEO Gong Yu (hereinafter referred to as "buyer") a preliminary non binding proposal, held by Baidu plans to close Iqiyi shares. Excluding cash transactions and liabilities (cash-free and debt-free, which is out of cash and debt contract), the transaction valuation of $2 billion 800 million for Iqiyi.

according to the proposal, after the completion of the transaction, Iqiyi will continue to be a strategic partner of Baidu, and signed a business cooperation agreement with Baidu. At present, Baidu holds 80.5% of the total outstanding shares of Iqiyi.

Baidu board has set up a special committee, headed by Greg · Peng Na (Greg Penner), Brandt · Colin Nicks (Brent Callinicos) and James · (James Ding); Ding three independent directors, the chairman of the Committee Nawei peng.

in addition, the special committee has hired Skadden, Arps, Slate, Meagher, & Flom LLP is the United States legal adviser, and plan to hire the Cayman Islands and China area legal counsel, and an independent financial adviser to help the special committee to assess the proposal.

Baidu board of directors to remind shareholders of the company and other investors to consider the stock trading company, the company is currently only received the offer, has not made any decision. There is no guarantee that the buyer will give the final offer, nor will it be able to secure any transaction in the future.

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Iqiyi said that this offer will help Iqiyi better access to the domestic capital market support, to the next stage in the content, technology and other aspects of the investment of reserves, to create more space for the development of the company.

for the future relations between the two sides, Iqiyi said Baidu for Iqiyi’s development to give strong support to the future of Iqiyi and Baidu will continue to play a synergistic effect in a number of business strategy. Li Ming ()