Shares of Baidu, sometimes referred to as China’s Google, rose 4.1 percent to $147.21 in premarket trading on Friday.
Qiyi has an enterprise value of $2.8 billion, Baidu said in statement.
Baidu said its board had formed a special committee to evaluate the offer.
The search company bought the majority stake in the then loss-making Qiyi in 2012, a push into the highly competitive Chinese digital media market.
Up to Thursday’s close, Baidu shares had fallen more than 34 percent in the past 12 months.