Caixin reports a group led by Baidu’s CEO withdrew its US$2.8 billion bid for the company’s video unit iQiyi after failing to agree on final terms, killing a deal that was criticized by a New York hedge fund as grossly undervalued. Baidu said on July 25 that it received a letter from the buyer group revoking the proposal to acquire all outstanding shares of the streaming service, saying the two sides could not agree. The buyer group was being led by Baidu Chairman Robin Li and iQiyi CEO Gong Yu. The withdrawal came after hedge fund Acacia Partners LP, which owns more than US$400 million in Baidu shares, issued an open letter earlier this month complaining the sale price was “far too low.”
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