Baidu Acquires 91Wireless, Strengthening Its Foothold In The Smartphone Space

Baidu Inc. (NASDAQ: BIDU) has signed a definitive agreement with Netdragon Websoft Inc. to buy out the latter’s stake of 57.4% in 91Wireless Websoft, a leading mobile app developer and online games operator. Baidu will also buy out the other shareholders for a 100% stake in 91Wireless Websoft in an all cash deal of $1.85B. This deal follows the March acquisition of online video services PPS net, which along with Baidu’s have catapulted Baidu to becoming one of the biggest mobile video platforms in China.

These acquisitions are in line with the company’s strategy to strengthen its foothold in the mobile space after the company saw its mobile share decline in Q1 2013 to 66.9% from 77.5% in June 2012. We view these acquisitions as a positive move from the company as the number of smartphone users in China is on a tremendous rise with an average growth rate of 20% in the period from 2008-2012. We guess that sort of a growing market is where any company would want to be in, and so we believe that Baidu is headed in the right direction.

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

Other Interesting Articles:

♦ Plausible tug of war between two giants?!

♦ Hedge Funds show increased interest in IAC Interactive stocks

♦ Pandora Media’s profit margin to remain under pressure

♦ Trulia’s releases new map visualizations 


Read our Newsletter here: Amigobulls Internet Daily

Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

show more

Comments on this article and BIDU stock

Do share this awesome post