Baidu (BIDU) Looking to Nab Large Stake in Popular Mobile Browser Provider
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Despite being the leading PC search engine in China, Baidu (Nasdaq: BIDU) -- like peers in the States -- has found deriving more revenue from mobile-based searches has been a challenging endeavor. However, recent acquisition talks suggest Baidu is aiming to secure a key spot in several emerging mobile search markets.
According to reports from Dow Jones early Monday, Baidu has been in formal discussions as of last week to acquire a stake in start-up UCWeb; talks intensified over the weekend.
UCWeb is a Chinese company focused on creating a mobile Internet web browser. The company's offerings are currently one of the more popular options for the Chinese mobile market, with UCWeb saying about 300 million of its browsers being installed since inception.
No specific numbers have been thrown around, but some Chinese news outlets see a transaction with Baidu valuing the popular search provider UCWeb at about $1 billion.
News follows reports in late May Baidu was looking to create an operating system which would basically hijack Google (Nasdaq: GOOG) Android suite, replacing it with Baidu-focused features. In addition, the chatter hearkens to a similar deal which has been mulled between browser-provider Opera and Facebook (Nasdaq: FB).
Reports late last week said a $400 million bid by Baidu for 49 percent of UCWeb fell silent. It's not clear whether Baidu is looking to spend much more and nothing has been officially affirmed on either side of the bargaining table.
Aside from China, UCWeb is also looking to make a stronger push into India, a market which is rapidly becoming an important player in the global mobile phone expansion.
Shares of Baidu are flat in early trade Monday.
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According to reports from Dow Jones early Monday, Baidu has been in formal discussions as of last week to acquire a stake in start-up UCWeb; talks intensified over the weekend.
UCWeb is a Chinese company focused on creating a mobile Internet web browser. The company's offerings are currently one of the more popular options for the Chinese mobile market, with UCWeb saying about 300 million of its browsers being installed since inception.
No specific numbers have been thrown around, but some Chinese news outlets see a transaction with Baidu valuing the popular search provider UCWeb at about $1 billion.
News follows reports in late May Baidu was looking to create an operating system which would basically hijack Google (Nasdaq: GOOG) Android suite, replacing it with Baidu-focused features. In addition, the chatter hearkens to a similar deal which has been mulled between browser-provider Opera and Facebook (Nasdaq: FB).
Reports late last week said a $400 million bid by Baidu for 49 percent of UCWeb fell silent. It's not clear whether Baidu is looking to spend much more and nothing has been officially affirmed on either side of the bargaining table.
Aside from China, UCWeb is also looking to make a stronger push into India, a market which is rapidly becoming an important player in the global mobile phone expansion.
Shares of Baidu are flat in early trade Monday.
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