Baidu.com, Inc. (ADR)(NASDAQ:BIDU) Open Lower After Recent Rally
Shares of Baidu.com, Inc. (ADR)(NASDAQ:BIDU) slid 0.76% to $120.80 in the opening session after recovering over 3% in the past one week on expectation that the company may acquire a stake in UCWeb.Comprehending the aforesaid, the company has intensified its talks with UCWeb for its acquisition. UCWeb which is a Chinese company targeted on developing mobile Internet web browser reports of about 300 million of its browsers being installed from the time of its commencement. With this, the company’s offerings are at present one of the more popular options for the Chinese mobile market.
The recent acquisition talks of Baidu aims at securing a powerful position in several emerging mobile search markets. Though there has been no official affirmation about the deal and its value, it is hinted that the transaction with Baidu valuing the popular search provider UCWeb is at about $1 billion. However, according to the reports that came late last week a $400 million bid by Baidu for 49 percent of UCWeb fell silent. Thus, there grows an uncertainty as to if Baidu is looking to spend much more with neither of the parties confirming.
Not only in the Chinese market, UCWeb is also looking to make a stronger push into India as the Indian market rapidly becoming an important player in the global mobile phone expansion.
Baidu, Inc. (Baidu) is a Chinese-language Internet search provider. Baidu serves three types of online participants, which include users, customers and Baidu union members. The Company offers a Chinese-language search platform on its Website Baidu.com. It provides Chinese-language Internet search services to enable users to find relevant information online, including Web pages, news, images, documents and multimedia files, through links provided on its Websites.
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