Baidu said on Tuesday it has bought JOYY's China live-streaming business for about $2.1 billion, reviving a deal that fell through a year ago, as the search giant doubles down on the fast-growing digital video market.

JOYY Inc, a NASDAQ-listed company, has entered into agreements with Chinese tech giant Baidu to complete the sale of YY Live, its video-based entertainment live-streaming business in Mainland China. The latter paid approximately $240 million to close the deal, bringing the aggregate purchase price to $2.1 billion in cash.

Baidu Inc. (NASDAQ:BIDU) saw its shares climb in Hong Kong trading on Wednesday after confirming its $2.1 billion acquisition of YY Live from JOYY Inc. (NASDAQ:YY). Baidus stock (HK:9888) surged up to 3% to HK$88.

Baidu said on Tuesday it has acquired social media firm JOYY's live-streaming business in mainland China for about $2.1 billion, as the search engine giant looks to diversify its revenue stream.U.S.-listed shares of JOYY jumped 6%,