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Baidu, Inc. (BIDU)

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  • Fri, Apr. 17, 5:59 PM
    • With Google's Android Wear platform handicapped in China by the blocking of many Google services, Baidu (NASDAQ:BIDU) has launched DuWear, an Android-based smartwatch OS that comes with versions of Baidu's voice search and mapping apps.
    • Much like Android Wear and Apple Watch, mobile payments support, motion tracking, and heart rate monitoring are also included. Baidu promises a "major manufacturer" will launch a DuWear watch in June. In the meantime, it's releasing a ROM that lets users (if they're interested) install the OS on Android Wear devices such as the Moto 360, LG's G Watch, and Sony's SmartWatch 3.
    • Baidu also claims DuWear supports some 3rd-party Android Wear apps that don't use Google's mobile services framework. The OS launch comes a month after Baidu ended support for its Cloud OS Android smartphone ROM (had seen limited uptake).
    • Separately, Baidu has acquired Anquanbao, a provider of cloud-based software that protects sites against malware and DDoS attacks. The startup's clients include Tencent and major Chinese domain name service providers.
    • Baidu plans to use Anquanbao's software to improve load times for its sites and protect them from security threats. Anquanbao founder/CEO Ma Jie will head Baidu's cloud security ops.
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  • Nov. 12, 2014, 8:04 AM
    • Xiaomi (now China's biggest smartphone vendor and #3 worldwide) and Baidu (NASDAQ:BIDU) are each investing $300M in Baidu's iQiyi video site, China Business Daily reports.
    • Meanwhile, Xiaomi has announced it's taking a stake in major iQiyi rival Youku (NYSE:YOKU) by acquiring shares on the open market. Xiaomi will also license content from Youku, and the companies will "jointly invest in the production and distribution of online video content and movies."
    • The news comes a week after Xiaomi announced it's investing $1B to expand its Web video content library. The company claims 85M active users for its MIUI Android UI (pre-installed on its phones). Baidu/iQyi recently announced it would have distribution rights to 1K+ U.S. movies next year.
    • Baidu, Youku, SOHU, and Tencent have been battling fiercely in a Chinese Web video market that features no dominant YouTube-like player for user-generated/short-form content, nor any dominant Netflix-like player for TV shows and movies. The market has seen huge mobile video growth: Mobile made up over 60% of Youku's Q2 video views.
    • YOKU +3.6% premarket.
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  • Oct. 10, 2014, 11:19 AM
    • Baidu (BIDU -3.8%) has bought a majority stake in Peixe Urbano, Brazil's largest group-buying/daily deals site. Terms are undisclosed.
    • Peixe Urbano claims 20M+ registered users (Brazil's total population is 200M), and 30K+ merchant partners. Its existing management will continue running the company as an independent unit.
    • Baidu claims its services are already accessed by 50M+ Brazilian users daily, and has promised to invest R$120M ($50M) in the country over the next 3 years. In July, the company launched a Brazilian search engine (faces tough competition from Google), and unveiled plans for a local R&D center.
    • Baidu already owns major Chinese daily deals site Nuomi (acquired from Renren). Shares are selling off on a rough day for tech stocks.
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  • Aug. 27, 2014, 3:36 AM
    • A 5B yaun ($813M) e-commerce joint venture between China's privately-held Dalian Wanda Group, Baidu (NASDAQ:BIDU) and Tencent Holdings (OTCPK:TCEHY, OTCPK:TCTZF) will be announced later this week, Reuters reports.
    • The new venture will unite three of China's most powerful non-state companies, and will be 70% owned by Wanda and 15% held by Baidu and Tencent respectively.
    • Wanda is a commercial property, luxury hotel and film conglomerate.
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  • Jun. 11, 2014, 2:39 PM
    • Acquisition-hungry Alibaba (ABABA) is buying the 1/3 of top Chinese mobile browser vendor UCWeb it doesn't yet own for a mixture of cash and stock. The price hasn't been disclosed, but Alibaba claims the deal is the biggest Chinese Web merger in history, exceeding Baidu's (BIDU +0.4%) $1.9B purchase of app store provider 91 Wireless.
    • UCWeb has a 50%+ share of the Chinese mobile browser market, and also has 35% of the Indian market. The company claims 500M total browser users, as well as 50M users for its Android app store, which competes against Baidu and Qihoo's (QIHU +3.8%) popular stores.
    • More importantly for Baidu (and also relevant for Qihoo), UCWeb claims a 20%+ share of the Chinese mobile search market on the back of 100M active users. A mobile search JV was launched with Alibaba in April.
    • Meanwhile, CNBC reports Alibaba will likely file a new F-1 early next week that includes its Q1 results. Odds are Yahoo (YHOO +0.6%), which has been reporting Alibaba's results a quarter in arrears, will move on the numbers.
    • CNBC adds Alibaba is still expected to go public in the first week of August. Bloomberg previously reported Alibaba is eying an Aug. 8 IPO.
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  • Apr. 28, 2014, 10:17 AM
    • Sohu (SOHU -4.8%) missed Q1 estimates and provided light Q2 guidance. Meanwhile, as part of a recent crackdown, the Chinese government has pulled The Big Bang Theory and other popular U.S. shows from sites such as Sohu.com, Youku.com (YOKU -4.4%), Baidu's (BIDU -5%) iQiyi, and Tencent Video (TCEHY -2.8%). Time observes The Big Bang Theory has produced 1.3B video views since launching on Sohu TV in '09.
    • The news is overshadowing a $1.22B investment in Youku by Alibaba (ABABA) and an affiliated P-E firm, and a WSJ report stating Alibaba is forming a mobile search JV with leading mobile browser firm UCWeb (once targeted by Baidu).
    • The deals are the latest in a long line of investments and partnerships struck by Alibaba, Tencent, and Baidu, as each firm tries to build a Web/mobile empire covering over a dozen valuable markets.
    • Is Qihoo (QIHU -0.8%) next in line to make a deal? With a $21.6B market cap, the security app/browser/search provider and Baidu rival is the biggest Chinese Internet company to remain independent of the big-3. Qihoo was reported in January to be talking with Alibaba.
    • Other decliners: NQ -6.5%. VIPS -5.2%. WB -4.2%. WBAI -3%. LONG -4.5%. QUNR -2.4%.
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  • Apr. 8, 2014, 9:37 AM
    • Bloomberg reports leading Chinese travel sites Ctrip (CTRP +5.4%) and Qunar (QUNR +5.4%) are "discussing a range of possibilities, from a full-blown merger to a partnership."
    • Sources caution the talks are at an early stage, and that ownership structure and financing haven't yet been agreed upon.
    • With combined 2013 sales of more than $1B, a Ctrip-Qunar merger would create a Chinese online/mobile travel powerhouse ... provided regulators don't object. The companies have been aggressively battling for mobile customers, sacrificing margins in the process.
    • Ctrip and Qunar are both rallying. Rival eLong (LONG +1.9%) is also higher amid positive early trading for recently-pressured Chinese Internet stocks.
    • Baidu (BIDU +1.8%) owns 58.6% of Qunar, which delivered a strong IPO last year.
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  • Jan. 24, 2014, 10:59 AM
    • Five months after Baidu (BIDU -0.4%) acquired a 59% stake in Chinese daily deals/group-buying site Nuomi from Renren (RENN +2.2%) for $160M, Renren says it has reached a deal to sell its remaining stake in Nuomi to Baidu. Terms are undisclosed. (PR)
    • Following Baidu's initial purchase, Nuomi's CEO wrote a memo stating his company is looking to eventually go public. The company has been estimated to hold an 11.6% share of the Chinese group-buying market (#4 overall).
    • Nuomi is just one of several acquisitions Baidu has made over the last two years to grow the reach of its Web/mobile empire.
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  • Dec. 27, 2013, 1:21 PM
    • Making good on a November Marbridge Consulting report, Baidu (BIDU +4.1%) has reached a deal to acquire Perfect World's (PWRD +1.8%) Huanxiang Zongheng online literature business (provides Chinese e-books, digital comics, and animations) for RMB191.5M ($31.5M). (PR)
    • Marbridge previously noted Zongheng offers 100K+ e-book titles, receives 60M+ daily page views, and gets over 1/3 of its site traffic via mobile.
    • The purchase is the latest in a string of 2013 acquisitions by Baidu, as the Chinese search giant attempts to create a far-reaching empire of Web/mobile content and services. Prior acquisitions: PPS, 91 Wireless, Nuomi.
    • Perfect World says the deal will allow it to focus on its core online gaming business. The company has been investing heavily in both developing new games and promoting existing ones.
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  • Nov. 21, 2013, 7:04 PM
    • A source close to Baidu (BIDU) tells Marbridge Consulting the Chinese search giant is close to buying Chinese literature/comics/animation site Huanxiang Zongheng, a unit of online gaming firm Perfect World (PWRD). The source adds more info about the deal will be released on Nov. 26.
    • Zongheng offers 100K+ online book titles, and receives 60M+ daily page views. It also offers iOS, Android, and Windows Phone apps, and gets over 1/3 of its site traffic via mobile.
    • Baidu has stepped up its M&A activity this year, as it tries to evolve into a broader, Google-like provider of Internet services and apps. The company has already bought video site PPS and top Android app store 91 Wireless, and a 59% stake in daily deals site Nuomi.
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  • Sep. 16, 2013, 11:44 AM
    • Though Tencent's (TCEHY.PK, TCTZF.PK) acquisition of a 36.5% stake in Sohu's (SOHU +6.9%) Sogou search unit stands to make Sogou a greater threat to Baidu (BIDU +2%), given Tencent's plans to promote Sogou throughout its messaging/gaming empire, Baidu investors appear relieved Qihoo, which was in talks with Sohu, didn't end up reaching a deal.
    • Research firm CNZZ recently estimated Qihoo now has over 15% of the Chinese search market, and the company itself recently pegged its share at 20%. Acquiring Sogou (estimated 8.8% share) would've given Qihoo additional scale and resources as it challenges Baidu's dominant position.
    • Meanwhile, Tencent rose 2.5% in Hong Kong overnight, before the Sogou deal was announced. The company's market cap has topped $100B.
    • Chinese Web giants Baidu, Tencent, and Alibaba are increasingly stepping on each others' toes. While Tencent and Alibaba have been relying on partnerships/minority investments to grow their reach, Baidu has been more interested in acquisitions and controlling stakes.
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  • Aug. 23, 2013, 9:59 AM
    • Beaten-down Renren (RENN +7.6%) has jumped on the news; high-flying Baidu (BIDU -0.5%) is close to breakeven. The all-cash deal is expected to close in Q4. (PR)
    • Baidu has been busy expanding the scope of its empire via M&A. Other recent acquisitions include top Chinese Android app store 91 Wireless ($1.9B), and video sites iQiyi and PPS.
    • Nuomi, estimated to have an 11.6% share of the Chinese group-buying market (per local research firm tuan800), has a long history of posting losses. It had Q2 revenue of $6.2M (+69% Y/Y), and 3.8M active paying users during the quarter. 30% of its Q2 transactions came via mobile.
    • Baidu's ability to promote Nuomi to its massive user base should help grow the site's paid user count, and in doing so increase its appeal to merchant partners. Nuomi is the Chinese group-buying market's 4th-largest player, behind Meituan (estimated 36.5% share), Dazhong (24.1%), and 55tuan (12.1%).
    • The deal allows struggling Renren to focus on its online/mobile gaming and social networking ops going forward.
    • Marbridge Consulting reported of Baidu's interest in Nuomi 10 days ago.
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  • Aug. 13, 2013, 11:37 AM
    • An "industry source" tells Marbridge Consulting Baidu (BIDU +1.5%) has been talking with Renren (RENN +6.5%) for two months about buying a controlling stake in the latter's Nuomi daily deals unit. However, Nuomi is said to prefer a minority investment.
    • The source adds Baidu has approached another daily deals site, Dianping, about a possible acquisition, while another source states Baidu is holding investment talks with the own of local search engine Ding Ding Map (30%-owned by Alibaba).
    • Baidu has been in an acquisitive mood lately, snapping up online video site PPS and top Chinese Android app distributor 91 Wireless for hefty sums.
    • Nuomi's revenue rose 102% Y/Y in Q1, but still only totaled $5.1M. Active paying uses amounted to 3.1M (+69% Y/Y). The business has been a drag on Renren's bottom line for some time; it hurt the company's Q1 net profit by $7.9M.
    • Renren is rallying thanks to the report, and perhaps also due to Sina's Q2 beat, which was driven by surging Weibo revenue. Renren's own Q2 results arrive tomorrow.
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  • Jul. 19, 2013, 9:38 AM
    Qihu (QIHU -1.1%) says it's in talks to buy Sohu's (SOHU +0.4%) Sogou search unit, but cautions it's "not in the pricing stage yet" and is still weighing integration issues. Analysts estimate the business is worth $1.2B-$1.4B. Sogou, rumored to be drawing interest from a few different companies, was recently estimated to have an 8.8% share of the Chinese search market in June; Qihoo was given a 15.3% share. If integration challenges can be handled well, a Qihoo/Sogou merger would yield a company with more resources, user data, and advertising scale to take on Baidu (BIDU -0.3%, 69.4% share). Sohu has forecast Sogou revenue of $48M-$50M for Q2, +41%-44% Y/Y.
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  • Jul. 15, 2013, 10:30 PM
    Baidu (BIDU) is acquiring top Chinese mobile app distributor 91 Wireless from Hong Kong-listed NetDragon and minority shareholders for $1.9B. 91 was estimated to host ~900K Android apps from ~93K developers (#1 in China) at the end of 2012; the company has also developed several popular apps. Baidu is paying steep multiples for rapid growth: NetDragon's mobile ops posted 2012 revenue of $46M, and Q1 revenue of $23.6M (+42% Q/Q and +219% Y/Y). The deal follows Baidu's purchases of video sites PPS and iQiyi, and is another step towards building a Google-like mobile ecosystem ... and perhaps also lowering its search dependence in the face of growing competition and mobile monetization issues. 91 competes with Qihoo's (QIHU) Mobile Assistant app store.
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  • Jul. 11, 2013, 1:28 PM
    Baidu's (BIDU +3.4%) Duoku mobile entertainment/content unit has bought mobile gaming portal Ptbus.com, a source tells Marbridge consulting. Baidu has been investing heavily in building mobile apps and related cloud services, with the goal of creating an ecosystem around its mobile search engine (now has100M+ daily users).
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Company Description
Baidu Inc is a Chinese language Internet search provider. The Company offers a Chinese-language search platform on its website Baidu.com.