JOYY Left With Unwanted China Business After $3.6 Billion Baidu Sale Falls Through
January 5, 2024
🌧️Trending News
JOYY INC ($NASDAQ:YY)., a leading global social media and entertainment company, is now left with an unwanted Chinese business after the collapse of their $3.6 billion sale to Baidu. JOYY Inc is a Cayman Islands-based company trading on the Nasdaq Global Select Market. It operates online video platform, YY Live, and a social networking platform, Duoyin, in China. It also provides online entertainment services through the Huya platform, and owns Huajiao, a live streaming platform. The company also provides online education services through the Wanxue platform, and owns Bigo Technology, a leading global live streaming platform. The deal also included a joint venture between JOYY’s Bigo and Baidu’s iQIYI streaming platform.
The deal fell through due to antitrust concerns from Chinese regulators. Despite the deal falling through, it speaks to the potential of JOYY’s Chinese business. It was a very attractive offer for Baidu, showing the value of JOYY’s portfolio of Chinese services. Going forward, JOYY now needs to find a way to make the most of its Chinese business and capitalize on its potential.
Price History
This news sent JOYY’s stock price down on Thursday, but it recovered slightly by the end of the day. The stock opened at $33.3 and closed at $33.5, up by 1.5% from its closing price of $33.0 on the previous day. JOYY had been hoping that the sale would help it refocus its efforts on other markets, such as North America and other markets outside of China.
Unfortunately, the deal has been derailed, leaving JOYY with a business in China that it is no longer interested in. It remains to be seen what JOYY will do next in order to move on from this failed deal. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Joyy Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.3k | -78.2 | -8.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Joyy Inc. More…
| Operations | Investing | Financing |
| 316.49 | -510.28 | -321.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Joyy Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.45k | 3.16k | 81.6 |
Key Ratios Snapshot
Some of the financial key ratios for Joyy Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -19.6% | -41.5% | 11.7% |
| FCF Margin | ROE | ROA |
| 10.7% | 3.4% | 2.0% |
Analysis
At GoodWhale, we have completed an analysis of JOYY INC‘s fundamentals, and the results are promising. According to our Star Chart, JOYY INC is strong in asset, medium in dividend, profitability and weak in growth, indicating that the company is making good financial decisions. Additionally, JOYY INC has a high health score of 10/10 with regard to its cashflows and debt, which means it is capable to safely ride out any crisis without the risk of bankruptcy. Based on this analysis, we have classified JOYY INC as a ‘cow’, a type of company we conclude that has the track record of paying out consistent and sustainable dividends. This type of company may be of interest to passive investors who prioritize receiving regular dividend payments and are looking for a low-risk investment. More…
Peers
The company operates a number of online platforms, including Youku Tudou, YY Live, and Bigo Live. JOYY Inc‘s main competitors are Grom Social Enterprises Inc, IL2M International Corp, and Lizhi Inc. All three companies are based in the United States.
– Grom Social Enterprises Inc ($NASDAQ:GROM)
Grom Social Enterprises Inc is a social media company that operates in the children’s market. The company has a market capitalization of 6.82 million and a return on equity of -24.49%. The company’s products and services are aimed at children and families. The company was founded in 2010 and is headquartered in Boca Raton, Florida.
– IL2M International Corp ($OTCPK:ILIM)
IL2M International Corp is a publicly traded company with a market cap of 366.35k as of 2022. The company has a Return on Equity of 1203.09%. IL2M International Corp is a holding company that operates in the e-commerce, digital media, and entertainment industries. The company was founded in 2006 and is headquartered in Los Angeles, California.
– Lizhi Inc ($NASDAQ:LIZI)
Lizhi Inc. is a leading audio content platform in China with over 10 years of experience. The company has a market cap of 21.24M as of 2022 and a Return on Equity of 1.81%. Lizhi Inc. provides an innovative and convenient way for people to listen to audio content and connect with others. The company’s mission is to use the power of audio to bring people together and make the world a more connected place.
Summary
Joyy Inc is a Chinese company focused on online entertainment and streaming services. The company recently attempted to sell its business in China to Baidu for $3.6 billion, however the sale fell through. Despite this, Joyy remains committed to its Chinese operations and is focused on expanding this segment of the business.
Investors may find value in Joyy, given its sound financial performance, proven track record of success, and potential for growth in the Chinese streaming market. Its strong balance sheet, combined with the potential for growth, provides an opportunity for investors to benefit from a long-term investment in Joyy.
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