iQiyi.com to remain money pit for Baidu

Baidu Inc may have to keep pumping money into its video-streaming operation for the foreseeable future following the withdrawal of a proposed buyout plan that could have made the cash-burning division a standalone business.

A consortium led by the chief executive officer of the Chinese online search giant abandoned its bid to buy out its video-streaming operation iQiyi.com Inc after failing to reach an agreement "on the transaction structure and purchase price".

An investor group led by Baidu CEO Robin Li and iQiyi CEO Gong Yu offered in February to acquire Baidu's 80.5 percent stake in a deal that valued the Netflix-like service at $2.8 billion.