Baidu, the Chinese search engine equivelant of Google, as recently announced that it launched it’s own Smart TV box in conjunction with TCL Multimedia Technology Holdings Ltd., in order to compete with Alibaba Group Holding Ltd. in the growing online video business.
Baidu plans to merge iQiyi with online video provider PPS, which it purchased for about $370 million in May. The combination will create China’s largest online video provider, unseating Youku-Tudou, and giving TV+ an edge in terms of content. In addition to on-demand video, TV+ will also feature free access to movies and TV series.
Baidu’s stock rose a half of a percent, closing at $136.17 in U.S. trading as a result of this news release, and has climbed a total of 36 percent this year, compared with a 20 percent increase in the overall Nasdaq Composite Index.