Baidu Spreads Its Wings

Baidu (NASDAQ: BIDU), the Chinese search engine giant, has signed a definitive agreement with Renren (NYSE: RENN) to buy a 59% stake in the latter’s leading group deals provider, Nuomi. As per the official statement, Baidu will benefit immensely from the widely spread geographical distribution of the Nuomi customers as Baidu will use the Nuomi geographical sales coverage to help in the development of its mobile location based services and also Baidu map services. Nuomi claims $120MM general merchandise sales and 3.8MM active paying users in Q2 2013. Baidu in turn will pay Renren $160MM in an all cash deal to be closed in Q4 2013. Renren, which has been dubbed the facebook of China, has been struggling with this division, as Nuomi has been a drag on the fortunes of Renren. The Renren stock has jumped 13.82% in pre-market trade following the announcement.

To see Baidu’s latest stock price movement, click here (NASDAQ: BIDU)

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