Chinese firm Qihoo Technology Co has stated in a press release that it is in early talks with Sohu.com, a leading search engine in China, to buy the same in a deal which could be valued worth up to $1.4 billion. Chinese internet industry has recently seen its furious uprising lately with big firms making acquiring mobility firms to make money off mobile platforms.
Qihoo broke into the search engine competition last year and has gradually eaten up shares from Baidu Inc, the search engine jargon in China with a whopping market share of 69 percent. Qihoo, the US listed company currently stands at a market value of $7 billion and has a cash pile of $301 million under its name. Although Qihoo has maintained that the talks are still at preliminary stage, the company plans to churn out the fund through Qihoo equity with a small portion of cash. Alex Xu, Qihoo’s co-chief financial officer, told Reuters that “Right now we’re not in the pricing stage yet. We’re still trying to figure out a way whether we can get this piece of asset and fully integrate it.” Shares in Qihoo has soared up to 92 percent since the starting of this financial year and it seems like the company is going good with its calculations.
China has one of the highest numbers of internet users in the world with a count of 591 million in June and with international firms like Google failing to shine, local companies are brewing up new ideas to make their business work.