(Yicai Global) June 17 -- People should not assume that Baidu will sell part or all of its majority stake in video platform to tech rival Tencent Holdings, Baidu’s Public Relations Director Guo Feng said today.

Baidu will continue to support iQiyi’s development, and the platform is an important part of Baidu’s content strategy, Guo said.

Reuters yesterday cited sources close to the matter as saying that Tencent plans to become the largest shareholder in iQiyi, a competitor to its own Tencent Video platform. Shares in the alleged target [NASDAQ:IQ] closed nearly 26 percent higher as a result yesterday, at USD24.10.

Baidu holds 56.2 percent of equity in iQiyi, which was worth about USD8 billion before the Reuters reported was published.

Editor: James Boynton