Google-backed Chinese Internet search company Baidu.com (ticker: BIDU) is planning an IPO in Fall 2005. Baidu and Goldman (ticker: GS) are reportedly far apart on valuation. Baidu is looking for a market cap of $1 billion, and Goldman, suggesting around a third of that. The IPO would be the first for a pure-play Chinese search engine company. Here is a quick profile:
Baidu's business:
- Paid search.
- Charges customers about .30 RMB or less than $0.04 per click-through.
- 70% of revenue from paid search.
- 15-20% of revenue from generic, non query-sensitive text links.
- Search solutions for enterprises account for the rest.
Search market share (from iResearch):
- Baidu: 44.7%
- Google: 30.1%
Financial information:
- Baidu has not released financials.
- The company is reportedly profitable.
Investors:
- Draper Fisher Jurvetson, IDG, Peninsula Capital, Integrity Partners, ePlanet Venture, Bridger Management, China Equity, China Value and Venture
TDF. - Google (ticker: GOOG) invested in Baidu’s Series C round, and bought a 10% stake at a valuation rumored around $100 million in mid-2004.
Baidu's origin:
- In Chinese, Baidu means "a hundred times".
- Baidu takes its name from a 12th-century Song dynasty poem about searching for a beautiful woman amidst the teeming masses.
