Big mobile plans afoot for Baidu, the Google of China that leads in search and has launched a host of other services in the wake of that business. The company today unveiled the first smartphone to be built on its own platform, the Changhong H5018. And while that device is designed on a “forked” version of Android — forked Android devices being very popular in China — Baidu says that it doesn’t want to stop there: the idea is to take its platform, the Baidu Cloud Smart Terminal, to other operating systems like Windows Phone and iOS.
“We want Baidu’s Cloud Smart Terminal to function as a platform that sits on top of all operating systems, such as Windows Phone and iOS,” Kaiser Kuo, a spokesperson for Baidu, told TechCrunch today.
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Baidu, China’s leading web search company today issued its quarterly earnings report for the first three months of 2012. The company made $677 million in top-line revenue, up 75 percent from the revenue it posted in the first quarter of 2011. Baidu performed just as strongly at the bottom line as well, posting a net income of $299 million, up 75.9 percent year-over-year.
In case you need some context for that: Google reported revenues of $10.65 billion and net income of $2.89 billion for the first quarter of 2012; Facebook’s Q1 revenue was a bit over $1 billion. → Read More
Baidu is one of the most known of the Chinese Internet giants. Some of the buzz is admiration for Robin Li, one of the pioneers of the Chinese Web scene who built a global giant that succeeded in a political environment where Google cried “uncle.” Others have painted Baidu as the mirror image of Google’s lofty “do no evil” credo.
So on our recent trip to Beijing, we decided to take our cameras to the search giant’s massive headquarters– which spans more than one million square feet– to see if we could find any torture chambers. Big thanks to our gracious host and good sport, Baidu spokesperson Kaiser Kuo. → Read More
Chinese search engine Baidu posted strong earnings today, with total revenue in the third quarter of 2011 coming in at $654.7 million, an 85.1% increase from the same period in 2010. Baidu’s net income was up 80% to $295 million. Diluted earnings for the third quarter of 2011 were $0.84; non-GAAP earnings were for the $0.86. Baidu beat Wall Street expectations; analysts expected a profit of $0.83.
Robin Li, chairman and chief executive officer of Baidu said in a release, “Baidu recorded stellar results in the third quarter driven by rapid growth in customer spending and user traffic. In particular, spending by large customers significantly outperformed our expectations as we continued to build strong relationships with high quality companies. China’s search industry is still in its early stages, and as the clear industry leader we see enormous room for continuing growth as users and online marketing customers become increasingly sophisticated.”
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Hot on the heels of Baidu’s new mobile OS launch, reports are circulating that the Chinese search giant is partnering with Dell to build tablets and mobile phones.
China is a goldmine in terms of potential consumers. With over 900 million mobile subscribers, China is becoming one of the fastest growing tablet markets, as well. As the Google of the Eastern world, Baidu should have no problem marketing hardware under its brand name. And Dell’s business in China seems to have picked up as well, though the name carries far less weight with consumers than Baidu’s. → Read More
Chinese search giant Baidu is reportedly developing a cloud-based smartphone platform in attempt to dip its toes into the mobile pool. Mobile internet users in China totaled 233 million in 2010, projected to reach 957 million by 2014. For some perspective, the total population of both the European Union and the United States was approximately 800 million last year. So in China, mobile is less of a pool and more of a vast ocean.
This should be interesting. → Read More
Chinese search giant Baidu’s investment in Qunar officially closed this week, and the two teams are working on integrating Qunar’s search results into Baidu’s travel vertical now. I caught up with Qunar’s CEO Chenchao Zhuang for his first Western interview about the deal to talk about what the deal means for the company and China’s Web scene broadly.
This $306 million deal is not only a big one in dollar amount, but it could represent a seminal turning point in the Chinese Web. Until now, Chinese Web companies have had a strong bias towards going it alone. Much like earlier eras in Silicon Valley, success is considered to be an IPO not an acquisition. But there’s a lot of pressure on that to change, and most industry watchers feel it’s just a matter of time– and of course, price. → Read More
Chinese search engine Baidu has made a $306 million investment in Qunar, travel search engine in China. The investment will make Baidu the majority shareholder of Qunar. Qunar had previously raised $25 million in funding. Previous investors include the Lehman Brothers, GSR Ventures Management, Mayfield Fund, and Tenaya Capital.
Founded in 2005, Qunar is basically the Kayak for China. The portal allows Chinese consumers to serach for air and rail tickets, hotels, and tour packages. The company also provides group-buying deals and user discussion forums for reviews. Currently Qunar is one of the most frequented travel search engines in China, listing more than 11,000 air routes and 102,000 hotels worldwide. → Read More
Boutique tech investment bank Pacific Crest Securities has purchased Pacific Epoch, a Shanghai-based investment research firm specializing in technology. This gives Pacific Crest fifty more bodies on the ground in China to deliver investors better investment research than “This is the (fill-in-the-blank-Western-Internet-company) of China.”
That lazy marketing strategy has helped companies like YouKu (aka THE YOUTUBE OF CHINA!….nevermind it doesn’t really do user generated content) or RenRen (aka THE FACEBOOK OF CHINA!) to get heady IPO pops, but it doesn’t help investors have a clue what they are really buying or the context of those companies on the ground. Historically boutique banks are better at doing this than the bulge bracket firms. (See the “four horsemen“ who helped build Silicon Valley.) → Read More
A Global Mobile Internet Conference kicked off last night in Beijing. The opening event was an on-stage interview with John Liu, head of Google’s China operations, followed by a panel discussion with several entrepreneurs and executives from MSN and Zynga.
The interview was titled “How foreign companies can succeed in China”, a rather amusing title considering that no foreign Internet company has ever achieved a dominant position in the People’s Republic. → Read More
Facebook, as I’m sure you know, is blocked in China.
And being banned in a country that boasts roughly 500,000,000 Internet users is, of course, not exactly an ideal situation for a company aggressively looking for growth worldwide.
Now Facebook is rumored to have recently inked a partnership deal with a Chinese Internet giant in a move to enter the country (which, as some have pointed out, won’t be a walk in the park any way you look at it). → Read More
Leading Chinese search engine company Baidu has led a $50 million financing round for Anjuke, a major real estate marketplace in China. Anjuke, which was founded in Shanghai in 2007, provides a platform that connects property buyers, homeowners and real estate agents to buy and sell secondhand properties online.
Anjuke last year also launched Haozu.com and Aifang.com to expand to property rental and new property sales, respectively. → Read More
The biggest difference between the Internet scenes in Silicon Valley and China this year? We’re all still asking when Facebook will go public, while Chinese companies are filing left and right. Part of this is an investor demand to get a chunk of that 400 million person strong and growing Chinese Internet market.
But part of this is cultural. American Internet entrepreneurs are more likely to want to sell their companies these days. But in China, it’s like the late 1990s: Success equals an IPO. On the other side of the bargaining table, American companies like to buy technology, engineers and potential competitors and aren’t afraid to potentially overpay to get what they want. Chinese Internet companies have the cash and the stock currency: Tencent is the third largest Internet company in the world by market cap and Baidu is the fifth. But so far, they’ve been loathe to do big acquisitions that would dilute the corporate culture.
That has to change at some point… doesn’t it? We ask DCM’s Ruby Lu about the implications of this IPO-only culture, especially the talent war it’s creating among big companies and startups in China’s hotspots. Video below. → Read More
Bill Bishop, an investor and consultant based in Beijing, joined me via Skype to talk about this white-hot Chinese Interent IPO market, that’s even welcoming unprofitable companies into the Nasdaq. “It’s been a crazy couple months, and it looks like it will be crazier through Christmas,” he says. “The goldrush is back.”
One of the most interesting corners of that goldrush is online video. Between dozens of competitors, soaring bandwidth costs, piracy issues and government crackdowns, this has been one of the harder areas for Chinese upstarts to succeed and more than a dozen have died. A lot of Silicon Valley money has died with them. But left standing are YouKu and Tudou and both have filed paperwork to go public. → Read More
Baidu CEO Robin Li made a rare appearance at the Web 2.0 Summit this afternoon and revealed some interesting information on the extent of his company’s reach. “Baidu answers more search queries in China than any other search engine in any other market, including Google in the US.” → Read More
Rakuten, Japan’s biggest e-commerce company ($10 billion market cap), and Chinese search leader Baidu have today opened a new online shopping mall in China. Dubbed Lekutian (“Happy Cool Day” in Chinese), the launch of the site was announced back in January. Both web powerhouses will invest US$50 million over the next three years in their joint venture. → Read More
Editor’s note: This is a guest post penned by Michael Cole, Managing Director of RightSite.asia, China’s largest online marketplace for commercial and industrial real estate. Cole has also successfully launched, grown and profitably exited from media ventures in China.
After a modest amount of time observing China’s economy it becomes clear that the government likes to arrange organized competition in industries it considers strategic. Thus the country gets three major airlines—China Eastern, China Southern and Air China—as well as three major mobile phone networks in China Mobile, China Unicom and China Telecom.
Now, with the recent announcement of two major new search engine companies, it appears that search is joining transportation, phone networks and Internet service providers as a strategic industry to be managed more directly by the government. And maybe China will soon have three search giants to match up with its telephone and airline triplets. → Read More
Back in March I thought that Google pulling out of China would hurt Google’s Chinese employees and shareholders more than anyone. The search engine was a distant number two in the market to Baidu, and many of the people already using Google in China, I assumed, were doing so through VPNs anyway, meaning the government blocking it wouldn’t immediately change much in terms of users’ experience. Beyond that, I figured startups in China’s thriving Web scene would rush in to fill any void.
But I underestimated one big thing: The impact the lack of Google would have on China’s Web businesses. By essentially handing Baidu a short-term monopoly on keywords, user acquisition costs have gone through the roof, infuriating many of the people who were originally sympathetic to Google’s case just a few months ago. “They should have just not come into the market to begin with if this is how they were going to act”—if I heard that statement once in the last two weeks I spent in China, I heard it a dozen times.
This wasn’t all Google’s fault. Frankly put, the company didn’t have enough market share to wreck things on its own. But it was icing on the cake of an increasingly unsustainable situation. → Read More
As expected, Chinese search giant Baidu posted strong first quarter results thanks in part to a gain in marketshare from Google. Total revenues in the first quarter of 2010 were $189.6 million, a 59.6% increase from the corresponding period in 2009. Net income in the first quarter of 2010 was $70.4 million, a 165.3% increase from the first quarter of 2009.
In the earnings release, Baidu’s chairman and CEO Robin Li also stated that new internet advertising product Phoenix Nest’s performance “continued to exceed” expectations. Baidu likely saw a flux in revenue from the product as it just replaced Baidu Bidding rank in December. Baidu was expected to see gains thanks to stronger paid search revenue as Google’s censorship issues with China escalated. Google shut down its Chinese search engine in late March in response to the widely reported cyber attack on Google in December 2009. → Read More
Baidu shareholders are likely loving Google to death right now. The Chinese search engine company’s shares are soaring, surpassing the $600 price mark this morning for the first time since it started trading on the U.S. public markets in August 2005.
Google, in case you haven’t heard, shut down its Chinese search engine two days ago in response to the widely reported cyber attack on Google in December 2009. → Read More
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