JOYY Shares Plunge Over Baidu's Takeover Concerns: Reuters

Chinese antitrust regulator could veto Baidu Inc's BIDU ambitious $3.6 billion acquisition of JOYY Inc's YY live streaming business YY Live, Reuters reports.
The approval amid Beijing's crackdown on gaming-related businesses and corporate expansion via deals could send a wrong signal to the market as per a source. The approval process will likely keep dragging on until the application lapses.
Baidu had not received any negative update from Chinese regulators regarding the deal. In early September, the State Administration for Market Regulation (SAMR) informed about conducting anti-monopoly reviews of 11 transactions, including Baidu's acquisition of YY Live.
JOYY's top two shareholders, Chairman David Li and Xiaomi Corp XIACF founder Lei Jun, aimed to take JOYY private as the U.S. market undervalued the firm.
Price Action: YY shares traded lower by 10% at $47 in the premarket session on the last check Friday.