Baidu's $3.6bn deal to acquire Joyy's Chinese live-streaming unit, YY Live, has lapsed, according to a filing with the Hong Kong Stock Exchange. The acquisition, announced in 2020, was part of Baidu's strategy to diversify its revenue streams. However, the deal failed to gain regulatory approval before the end of 2023, leading Baidu's affiliate, Moon SPV, to terminate the share purchase agreement with Joyy. The collapse of the deal represents a setback for Baidu's diversification plans and its ambition to challenge rivals such as ByteDance in the online entertainment space. It also highlights the challenges Chinese companies face in acquiring regulatory approval for major deals.