Baidu to Buy Top Chinese App Store for Almost $2B

by William White | July 16, 2013 1:44 pm

Baidu to Buy Top Chinese App Store for Almost $2B

baidu Baidu to Buy Top Chinese App Store for Almost $2B[1]Baidu (BIDU[2]), operator of a major search engine in China, announced Tuesday[3], that it plans to purchase smartphone apps distributor 91 Wireless.

Baidu is expecting to buy 91 Wireless for $1.9 million. Baidu will buy 57% of 91 Wireless from Chinese game developer NetDragon Websoft. The company will buy the rest of 91 Wireless from other shareholders, reports the Associated Press.

91 Wireless operates two different smartphone app stores in China, and is the largest third-party app distributor in the country. This is good news for Baidu, as China currently has the worlds largest population of internet users. The number of mobile device internet users rose to 420 million last year, an 18% increase compared to the year prior, reports The Associated Press.

Muzhi Li, a Citibank analyst, projects that Baidu may see an increase in revenue as high as 33%, reports The Street[4].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/01/baidu.jpg
  2. BIDU: http://studio-5.financialcontent.com/investplace/quote?Symbol=BIDU
  3. announced Tuesday: http://hosted.ap.org/dynamic/stories/A/AS_CHINA_BAIDU_91_WIRELESS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-07-15-22-48-46
  4. The Street: http://www.thestreet.com/story/11979625/1/baidu-jumps-on-19-billion-acquisition-of-chinese-app-maker.html?cm_ven=GOOGLEN

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