Newsletter
Weather
Community
English home Forum Photo Gallery Features Newsletter Archive   About US Help Site Map
China
World
Opinion
Business
Sci-Edu
Culture/Life
Sports
Photos
 Services
- Newsletter
- Online Community
- China Biz Info
- News Archive
- Feedback
- Voices of Readers
- Weather Forecast
 RSS Feeds
- China 
- Business 
- World 
- Sci-Edu 
- Culture/Life 
- Sports 
- Photos 
- Most Popular 
- FM Briefings 
 Search
 About China
- China at a glance
- China in brief 2004
- Chinese history
- Constitution
- Laws & regulations
- CPC & state organs
- Ethnic minorities
- Selected Works of Deng Xiaoping

Home >> Business
UPDATED: 17:11, July 07, 2005
Baidu makes first response to Google purchase rumor
font size    

Baidu.com Wednesday made its formal response in view of the rumor that Google Inc will hold more Baidu's shares or purchase it, saying that "Baidu is a Chinese language website with advanced technology as core competitiveness. Enjoying a huge market share in China, Baidu believes independent development is its best way out''.

According to sources, Eric Schmidt, CEO of Google who just concluded his visit to China, said recently Google would enter China's market this year, and how it enters the market would depend on its talks with Baidu.

There are two options for Google, said Schmidt. One is that Google holds shares of Baidu and the other is that both sides deepen cooperation, and Google would hold more Baidu's stakes or even set up a joint venture. This may lead to Google's takeover of Baidu, turning Baidu into its subsidiary in China.

The reporter noticed that the first option mentioned by Schmidt is that Google only "holds Baidu's shares''. In June last year, Google spent US$10 million in its third investment in Baidu with about 3 per cent of its stakes. According to insiders' analysis, this option may mean maintaining the status quo.

On June 28, 2005, Schmidt visited the headquarters of Baidu. However, what they talked about is unknown. Lu Weigang, an Internet industry analyst, told reporters in his recent interview that the best time for Google to hold more Baidu shares should be before Baidu's listing. Once Baidu gets listed, unless through tender offer it will not be feasible for Google to hold Baidu by buying it up through secondary market as Baidu's initial public offering will only be 25 per cent shares. Also it will cost Google dear.

In the meanwhile, Baidu's interactive search platform, known as zhidao.baidu.com, also went online yesterday after a two-week trial operation following Sina.com's interactive search engine, "iAsk''. Baidu said this is another move to optimize its search engine business.

Baidu still enjoyed the biggest share in China's market in the first quarter of this year, accounting for 37.4 per cent, a little more than the fourth quarter of last year, according to 2005 China Search Engine Survey Report released by iResearch, while Google's share was 19.1 per cent, ranking third, next to Yahoo.

By People's Daily Online


Comments on the story Comment on the story Recommend to friends Tell a friend Print friendly Version Print friendly format Save to disk Save this


   Recommendation
- Text Version
- RSS Feeds
- China Forum
- Newsletter
- People's Comment
- Most Popular
 Related News
- What is Google's strategy for its China presence?

- Polling makes China's information more transparent

- Baidu buys Hao123

Online marketplace of Manufacturers & Wholesalers

Copyright by People's Daily Online, all rights reserved