China’s tech company Baidu, Inc. (NASDAQ: BIDU) ("Baidu") announced on Monday that it has entered into definitive agreements with certain investors relating to the divestiture of its global ad and tools business ("Global DU business"), which provides DU ads and tool apps, including Du Caller, Mobojoy, Photo Wonder and DU Recorder.
Pursuant to definitive agreements, Baidu will divest a majority equity stake in the Global DU business. Upon the completion of the transaction, Baidu will own approximately 34% of Global DU business's outstanding shares and no longer have effective control.
The transaction contemplated under the definitive agreements is subject to certain closing conditions and is currently expected to close by the end of the third quarter of 2018. Upon the completion of the transaction, the Global DU business is expected to be deconsolidated from Baidu's consolidated financial statements.
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