Bottom line: Google could open a Chinese version of its app store by the end of this year and spend aggressively to quickly gain market share, but would face negative backlash from western critics for its U-turn back into the sensitive market.
Google lobbies China smartphone makers to include Play Store
Global Internet giant Google (Nasdaq: GOOG) is reportedly eying a return to China, with plans to launch a Chinese version of its flagship Google Play app store. The move, if true, would mark a major flip-flop for Google, which withdrew its core search engine from China in 2010 after a high-profile spat over Beijing’s strict censorship policies. But as many similarly principled companies quickly discover, China is a market that is simply too big to ignore.
That quandary led top business networking site LinkedIn (NYSE: LNKD) to enter China last year, despite expressing its own reservations about censorship, and top social networking (SNS) site Facebook (Nasdaq: FB) is also lobbying strongly for such a move. Google’s latest campaign comes in a the slightly less sensitive area of app store operation, though even that business would involve some self-censorship to eliminate apps that Beijing might consider sensitive for political or other reasons. Read Full Post…
Anti-monopoly regulator may need to brandish veto stamp
After years of fragmentation, China’s Internet has undergone a sudden and radical overhaul over the past year, with 3 major firms emerging as major consolidators. The frenzy of new tie-ups and acquisitions has been a welcome development, helping to cool overheated competition in a wide array of sectors where most companies were losing money.
But with the emergence of Alibaba, Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU) as the 3 major consolidators, China’s anti-monopoly regulator should start to give closer scrutiny to future deals to avoid too much reduction in the competition necessary to ensure future innovation and consumer choice. Such scrutiny could and should ultimately lead to the veto of some future deals, especially larger ones, by regulators who need to become more assertive in the space. Read Full Post…
A couple of Internet M&A deals are in the news as we head into the final days before the Lunar New Year, with word that leading search engine Baidu (Nasdaq: BIDU) has purchased more of group buying site Nuomi, while top Internet company Tencent (HKEx: 700) may be eying restaurant ratings site Dianping. The first deal could reflect a new pattern for Baidu, which has mostly bought controlling stakes but made few outright acquisitions in its recent spree of major purchases. Meantime, the latter deal would look good for Tencent if it was really happening, though I have major doubts about whether it is. Read Full Post…
App stores have suddenly become a hot ticket in China’s online space, with word that 4-year-old operator Wandoujia has just landed $120 million in funding from a group led by Japanese tech investor giant Softbank. The deal comes just a half year after online search leader Baidu (Nasdaq: BIDU) acquired another app store, 91Wireless, for more than $1 billion, leading me to wonder if Wandoujia could soon become a target for one of China’s cash-rich and recently very acquisitive top Internet companies. Such a purchase would certainly make sense for names like e-commerce leader Alibaba and social networking giant Tencent (HKEx: 700), which, along with Baidu, are all spending heavily to build up their mobile Internet business. Read Full Post…
Internet leaders Baidu (Nasdaq: BIDU) and Alibaba are in a recent war to see who can win the most headlines for online M&A, which has suddenly accelerated in China after years of inactivity. In the last 24 hours alone, media are reporting that Alibaba has finalized a deal to team with Hunan Satellite Television to purchase PPTV, one of China’s top video sharing sites. Not to be outdone, Baidu was reported earlier this week to be in late-stage talks to buy group buying site Nuomi (previous post), and has just announced the finalization of its previously announced $1.9 billion plan to buy online app store 91Wireless. (company announcement) Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 15. To view a full article or story, click on the link next to the headline.
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A new announcement by online gaming and mobile app store operator NetDragon (HKEx: 777) is raising the possibility of further talks with leading search firm Baidu (Nasdaq: BIDU), just a week after the pair agreed to a major asset sale. This new announcement is headlined with a recent share buyback by NetDragon, whose stock plummeted 20 percent last week after it announced it would sell its controlling 57 percent stake in app store 91Wireless to Baidu for $1.1 billion. (previous post) But a closer reading of the announcement seems to contain some other implications, including closer tie-ups with Baidu and even a potential renegotiation of the 99Wireless deal. Read Full Post…
Everyone is talking about the latest blockbuster acquisition by online search leader Baidu (Nasdaq: BIDU), so I thought I’d get in my own quick thoughts on its purchase of one of China’s leading wireless apps suppliers. In some ways, Baidu’s purchase of 91Wireless for up to $1.9 billion looks like a smart move that will help it diversify beyond its core search business. But in others, the move seems to reflect an M&A strategy lacking focus, since the app business doesn’t really complement any of Baidu’s other core product areas. Read Full Post…
