Baidu eyes sale of Waimai's food delivery division, source says

Baidu Inc is planning to sell its loss-making food delivery unit, Baidu Waimai, at a discounted price to a competitor backed by Alibaba Group Holding Ltd, a person familiar with the matter said.

The business could be sold to Ele.me at a valuation that is less than half the $2.5 billion it was given during its last round of fundraising, said the source who did not want to be identified.

Selling Waimai would put an end to heavy cash losses for Baidu, China's biggest search engine, as it struggles in the competitive on-demand services market and shifts its bets to artificial intelligence, the source added.