IQiyi Acquires Game Maker Skymoons in Race for Content
China's popular entertainment platform, iQiyi Inc (Nasdaq: IQ), which is often called the "Netflix of China," has snapped up domestic game maker Skymoons in a deal that could be worth nearly 2 billion yuan ($298.59 million) as it looks to broaden its offerings following a U.S. listing.
IQiyi, controlled by China's top internet search firm, Baidu Inc. (Nasdaq: BIDU), said in a statement late on Tuesday the deal involved a fixed payment of 1.27 billion yuan and an additional fee of 730 million yuan if Skymoons hits certain benchmarks over the next two years.
The deal would give iQiyi access to a broader range of characters and stories amid a fierce battle for content to lure in paying viewers with deep-pocketed rivals such as Tencent Holdings Ltd. and Alibaba Group Holding Ltd. (NYSE: BABA).
IQiyi's chief executive officer, Yu Gong, said the deal would broaden the platform's "offering of entertainment content across multiple formats" and help create more ways to monetize the firm's intellectual property.