Baidu has entrusted institutions to complete YY due diligence transaction earlier, and there are many possibilities

category:Finance
 Baidu has entrusted institutions to complete YY due diligence transaction earlier, and there are many possibilities


According to the above-mentioned people, it is common sense in the industry to conduct due diligence on the income health of the acquisition target. Judging from the content of the report disclosed by muddy water, the due diligence of PWC and other institutions on the acquisition target was more detailed.

After being short by muddy water, will Baidus acquisition of YY press the pause button?

Acquisition is a very serious legal issue, and the acquisition agreement will fully protect the rights and interests of the buyer. If YY financial fraud, Baidu has the right to terminate the acquisition. An investment circle personage said to reporters, now this situation, for Baidu, if the acquisition, there is a further bargaining chip with YY; if the data fraud is found in the further verification, you can leave at any time.

You Yunting, senior partner of Shanghai Dabang law firm, said in an interview with the first finance and economics reporter that the binding agreement signed by Baidu and huanju did not mean that the deal was settled. Because many delivery conditions will be stipulated in the agreement. If the acquiree fails to meet these delivery conditions, for example, the data is not true after financial audit, the transaction will not be able to be delivered. Generally speaking, after the muddy water report is exposed, Baidu will definitely increase the intensity of due diligence, including data investigation and financial data investigation. If Baidu made an investment decision after conducting in-depth investigation, I think it is very likely to continue this transaction, but I do not rule out that it will ask for a lower transaction price for the severity reflected in the muddy water report. If problems are found, Baidu can ask the shareholders of YY company to make a reasonable explanation. If the explanation is unreasonable, it can cite the contract terms to determine that the delivery conditions are not fulfilled, and it may terminate the transaction. You Yunting told reporters. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679

You Yunting, senior partner of Shanghai Dabang law firm, said in an interview with the first finance and economics reporter that the binding agreement signed by Baidu and huanju did not mean that the deal was settled. Because many delivery conditions will be stipulated in the agreement. If the acquiree fails to meet these delivery conditions, for example, the data is not true after financial audit, the transaction will not be able to be delivered. Generally speaking, after the muddy water report is exposed, Baidu will definitely increase the intensity of due diligence, including data investigation and financial data investigation.

If Baidu made an investment decision after conducting in-depth investigation, I think it is very likely to continue this transaction, but I do not rule out that it will ask for a lower transaction price for the severity reflected in the muddy water report. If problems are found, Baidu can ask the shareholders of YY company to make a reasonable explanation. If the explanation is unreasonable, it can cite the contract terms to determine that the delivery conditions are not fulfilled, and it may terminate the transaction. You Yunting told reporters.