Baidu, China’s answer to Google, has acquired the online video business of web-based broadcaster PPS for $370M. PPS’ online video business, which includes Asian and American programming, will be folded into Baidu’s TV and and movie portal iQiyi. The NASDAQ-traded Baidu said the combined entity will be China’s largest online video platform by number of mobile users and viewing time. The deal is part of ongoing consolidation in China’s vast online entertainment market where video sites compete with traditional broadcasters. Last year, rivals Youku and Tudou merged in a $1B deal that created the leader in online TV, and last month, Internet giant Alibaba spent $586M to acquire an 18% stake in Weibo, China’s version of Twitter. The PPS deal is expected to close in the second quarter of 2013.

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