Upon completion, Baidu will have a substantial majority stake in iQiyi.

ENGADGET: Baidu buys control of streaming video portal iQiyi, raises stakes in China's media wars

Upon completion of the transaction, iQiyi will be consolidated into Baidu's financial statements. iQiyi will continue to operate as a separate brand with its existing management team.

ENGADGET: Baidu buys control of streaming video portal iQiyi, raises stakes in China's media wars

Going forward, we see users spending more and more time on online video and we will integrate iQiyi's content more seamlessly into Baidu's overall search and mobile services.

ENGADGET: Baidu buys control of streaming video portal iQiyi, raises stakes in China's media wars

Besides mobile search, traffic growth is increasing in other areas that may be harder for Baidu to make much money from in the near term, such as online video player iQiyi and travel site Qunar.

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In August 2012, iQiyi was ranked as the number one online video platform in China in terms of average time spent per user and number two in terms of total monthly time spent, according to iResearch, a China-based research firm.

ENGADGET: Baidu buys control of streaming video portal iQiyi, raises stakes in China's media wars