China's Baidu to acquire online video firm for near $400 million

China's largest search engine, Baidu Inc, is in the process of acquiring Chinese online video firm, PPS Net TV, for between $350-$400 million, China Business News reported on Thursday, quoting sources.

China's largest search engine, Baidu Inc, is in the process of acquiring Chinese online video firm, PPS Net TV, for between $350-$400 million, China Business News reported on Thursday, quoting sources.

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Late last year Baidu acquired a majority stake in its loss-making online video unit, iQiyi. China's online video industry is hyper-competitive and content costs are expensive. In early 2012, Youku Tudou Inc acquired Tudou in an all-stock deal, making the newly formed company the largest online video player in China.

When acquired, PPS and iQiyi will continue to operate as independent brands, but will share back-end technical integration, the newspaper reported.

A Baidu spokesman declined to comment and a PPS spokesperson could not be reached for comment.