China’s Google ‘Baidu’ to invest in app store ‘NetDragon’, plans to spend $1.9 Billion

China’s biggest search engine ‘Baidu’ has signed a memorandum of understanding with mobile app distribution company, 91 Wireless Websoft, to acquire a cent percent stake. If you are unaware what Baidu is, then you should know that it has the highest number of search traffic in China and is also widely known as the ‘Chinese Google’. Meanwhile, Google has been losing its game in China to Baidu which has left the tech giant into a humbling share of mere 4.7 percent search traffic as compared to Baidu’s whopping 73 percent last month.

china-google-baidu-to-invest-in-app-store-netdragon-plans-to-spend-1-9-billion91 Wireless Websoft is a mobile app distribution company from Hong Kong listed company, NetDragon.  Baidu plans to initially acquire 57 percent of stake followed by the remainder from other stake holders. The total valuation of the entire deal is expected to reach $1.9 million, according to press release. Baidu, the leading Search Engine in Chine has really beefed up its business lately with a few crucial acquisitions done recently including the biggest online video service in China, PPS. Baidu also has its own video sharing repository, iQiyi which it plans to co-brand with PPS to make it as the biggest online video service measured by the number of mobile users and video viewing time in the People’s Republic of China.

91 Wireless operates a couple of smartphone app distribution systems in China and as for now, almost a 10 million downloads has been recorded through the systems, according to sources. Baidu has definitely stepped up to become another power house in the ever growing Internet business.

 

Source: Google