Investor challenges Baidu on sale of video service to CEO

Women are photographed in front of a Baidu sign during a new product launch in Shanghai, China, November 26, 2015. REUTERS/Aly Song/Files

Acacia Partners LP, an investor in Baidu Inc., criticized the search company for considering a sale of its video unit to a group led by its chairman at a price that is “far too low.”

IQiyi.com, a Netflix-like streaming platform, should be a valuable and important contributor to the company and a sale is against Baidu’s interests, the hedge fund said in a letter to Li that was made available to Bloomberg News. It cited a valuation on the business of $5.8 billion compared with the $2.8 billion valuation suggested in a buyout offer put forth by Li and iQiyi.com chief executive Yu Gong in February.

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