Baidu concerned over financial status is to sell stake in Ctrip

Baidu is reducing its $1 billion stakes in the online travel agent Ctrip to compensate for the dropping advertising revenue amid an economic downturn. The Nasdaq-listed OTA giant was once Baidu’s favored investments years ago in its diverse portfolio, now degraded to, however, a loss-making outlet. Baidu had a tough year in 2018 resulting from a sequence of misjudgments that have led to its absence in today’s mobile era. Its reputation was also harmed by several scandals related to medical advertising associated with various fatalities. Even with this reduction in stock holdings, Baidu nevertheless still remains Ctrip’s largest shareholder.