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Wednesday, August 03, 2005
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Tuesday, August 9
5 year old Beijing based search engine Baidu Com Inc (BIDU:NASDAQ) (The name originates from an ancient Chinese poem about a man in search of love !) launched their Initial Placing Offer (IPO) on Friday (5/8/05), last year they earned US $1.4 . 4.04 Million shares were offered, priced at $27, they opened at $66 and ended their first day at $122 having traded as high as $151.12 and are said to have been 40 times oversubscribed. That means, the company could have raised $488 million, rather than the $108 million they raised. It also puts a valuation on the whole company of US$5 Billion.(ish) With average daily volume of 22.7 million shares there was a lot of flipping – Internet fever is back ? On Tuesday they ended down at US$99 (18%) on a volume of nearly 9 Mn shares….Google own 2.6%.
In Hong Kong, Chen Pei, president of HC International's (8292: HK) search subsidiary Zhongsou, said the company's main short-term competition is Baidu but Microsoft is Zhongsou's long-term competition. According to Chen, Zhongsou targets the high-end search market and has made a big investment in the development of its search technology due to be re-launched within 2 months.
Yahoo meanwhile are taking a 35% stake in Chinese business to business website Alibaba and in return gain control of Yahoo China's core businesses. No cash is involved and Alibaba CEO Jack Ma might be appointed Yahoo China president, Softbank, one of Alibaba's investors, is also involved. Yahoo's China businesses currently include the Chinese Internet portal, the search engine Yisou, online auction website 1pai (a joint venture with Sina (Nasdaq: SINA)) and instant messaging service Yahoo Messenger.
Meanwhile in the real world Google has announced that it is endorsing China Enterprise, China Source, and Hotsales as three Authorized Resellers in China who will provide sales and support for Google AdWords ads in China.
This re-creates the limited program of re-selling Google has partnered with BellSouth, it looks as if only sizeable agencies and other types of large partners would qualify for reseller status.
This could be a very significant development. The 20 years history of high tech shows the importance of a strong and respectful alliance with reseller allies around the globe to provide stability and long life to the likes of Microsoft.
Google has just joined several news engines ,Topix.net, Findory, Yahoo News, RocketNews, and is now officially making Google news results available as RSS or ATOM feeds. Alerts will still be available – better set one up on “China search engines”…er...quickly.