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Baidu investor slams CEO's offer to buy video unit

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Baidu investor slams CEO's offer to buy video unit

search engine firm is being criticized by oneof its key investors, U.S.-based investment firm Acacia Partners, over theproposed sale of its video unit iQiyi to Baidu CEO Robin Li and iQiyi founder and CEO YuGong, Bloomberg reported July 19.

The twoexecutives made an offer to purchase Baidu's 80.5% stake in the streamingplatform in February that valued iQiyi at $2.8 billion.

In a letterto Li that was released publicly, Acacia urged the CEO to withdraw his bid andcalled the pricing "far too low," citing a $5.8 billion valuation onthe video business. The New York hedge fund added that such a sale would beagainst Baidu's interests and that the short-term gain from the deal does notcompare to the long-term value of keeping iQiyi.

Also in theletter, distributed to Bloomberg and other media outlets by the Finsbury Group,Acacia disclosed that it has ownership of more than 2.6 million shares in Baiduthat is worth over $400 million.

Meanwhile,Baidu said it is currently in the process of evaluating the offer, according toBloomberg.