Baidu Inc. has announced today that Baidu Music will merge with Chinese music company Taihe Entertainment Group, creating a new company. It’s the latest asset Baidu has spun off for investment as they focus funds on expanding their online marketing and transaction ecosystem, including Nuomi and Baidu Wallet.

“The new company will combine Taihe’s upstream strengths—its extensive intellectual property, and its artists and repertoire (A&R) resources—with Baidu Music’s powerful downstream digital platform and distribution capabilities,” said Baidu in a release.

Taihe has been consolidating an increasing amount of local and international content. The merger could give them greater leverage to deal independently of other music streaming services including those backed by Tencent and Alibaba.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com