Baidu announces today the acquisition of PPS (or PPStream), a peer-to-peer video service, for US$370 million. The latter will be merged into iQiyi, the online video service wholly owned by Baidu. Gong Yu, CEO of iQiyi, will be the CEO of the combined company, and Co-founders of PPS, Zhang Hongyu and Xu Weifeng, will be co-presidents.

Baidu claims the combined platform will be No. 1 in the Internet video industry in China in terms of user pool and view time.

Founded in 2005, PPS has cumulatively 500 million PCs installed with its software, with 100 million being active. And its mobile app installs reached 134 million as of February 2013, according to official data. Unlike most other Chinese video services who make revenues solely with advertising and haven’t turned a profit, PPS has been making considerable income through games, membership program, etc.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com