JOYY Inc. (NASDAQ: YY), a global technology company, saw its shares surge over 12% in pre-market trading on Tuesday. The sharp rise was primarily driven by the company's announcement of selling its video-based entertainment live streaming business in mainland China, known as YY Live, to Baidu Inc. for approximately $2.1 billion in cash.
The sale marks a significant strategic move for JOYY, as it divests a major part of its operations in China. The company had previously received around $1.86 billion in cash from the same deal back in February 2021, and on Tuesday, it received an additional $240 million, completing the transaction.
This transaction not only provides JOYY with a substantial cash influx but also allows the company to focus on its other social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, and instant messaging services. JOYY aims to leverage this strategic shift to enrich lives through technology on a global scale.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.