To what extent could ‘China’s Google’ go to increase its viewership share?
Navi Mumbai, Maharashtra -- (SBWIRE) -- 09/09/2013 -- Baidu, Inc., the Chinese language search provider has made or bought stakes in 3 major firms during the past 5 months.
First was the online video business of leading Internet video provider PPS for US $370 million. Through the deal Baidu hopes to become China's largest online video platform by number of mobile users and video viewing time. Speaking at their Q2 2013 earnings call, Robin Li, the Co-Founder and CEO observed that PPS was very complementary to ITE (Baidu’s online video platform) due to its differentiated user base, distribution channel and clear leadership in mobile. The acquisition also increased their headcount to 24,000, with 800 additions through the PPS deal.
Post the deal with PPS, came the decision to buy out 100% of NetDragon's subsidiary 91 Wireless in August this year. The total merger consideration amounted to US$1.90 billion. 91 Wireless would help Baidu gain share in the mobile application market as well as in the mobile gaming space, where currently China is seeing massive growth.
CFO Jennifer Li also commented at the Q2 call that along with Baidu’s investment focus on infrastructure, R&D, marketing & promotional efforts in mobile, they would continue to pursue suitable M&A opportunities to complement organic growth.
Later in August, Baidu announced that they would be purchasing approximately 59% of the equity interest in Nuomi through newly issued ordinary shares of Nuomi Holdings Inc., the wholly-owned subsidiary of Renren for US$160 million in cash.
Seeing that most of these deals have strong growth potential in the mobile space, all signs point to Baidu being on an aggressive expansion drive in this area. Find the complete speech of the Co-Founder & CFO from their Q2 earnings call here.
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