Baidu Reportedly in Discussions to Acquire


  • Baidu (BIDU.NASDAQ) is reportedly in discussions with a view to acquiring, a leading Chinese news aggregator, as reported by
  • Both companies have declined to comment. 

Why It Matters:

  • In 2016, recorded RMB 8 billion in revenue and it had a valuation of US$ 10 billion. The revenue of the company is expected to increase more than 200% in 2017 to RMB 20 billion.
  • Among BAT companies (Baidu, Alibaba, and Tencent), Baidu has been falling behind competitively. Baidu is betting heavily on artificial intelligence (AI) and can be a critical internet traffic hub for Baidu to implement its strategy.
  • However, the deal is proving hard to finalize. Last year, Tencent (0700.HK) planed to acquire but failed. Zhang Yiming, the founder of, has high ambitions and Baidu might have to offer a huge price for the acquisition.