Information Technology News
- Baidu.com wants in on Alibaba's turf
Date: 9-Nov-2007 Sources: (Shenzhen Daily)
TOP Chinese Internet search firm Baidu.com Inc. is pondering acquisitions and possibly a Hong Kong share listing to fuel an expansion into the country's consumer Internet market, taking on Alibaba.com in the world's No. 2 Web market.
Chief executive Robin Li said Thursday he would not rule out a share listing - say in Hong Kong - to help bankroll a foray into the kinds of consumer-to-consumer services, such as online auctions, that Alibaba's 'Taobao?and other sites offer.
Admitting that it would be difficult for Baidu to push through a desired home listing, because Chinese regulations all but prohibit foreign firms from selling shares domestically, Li said he nonetheless wants domestic investors to buy into his firm.
'We would like Chinese investors to have access to a Chinese search company,'Li told reporters after speaking to Hong Kong university students.
Asked if Baidu might consider a Hong Kong listing, he said: 'We will look into all kinds of opportunities.'
Baidu, often referred to as China's Google and which derived its name from a Song Dynasty poem about finding the right woman among a million, commands more than half of its home Web search market but Alibaba reigns supreme in online commerce.
Now, analysts believe Baidu plans to widen its net beyond search engines and delve deeper into messaging and advertising, encroaching on areas dominated by portals such as Sina.com and Shenzhen-based Tencent Inc.
'We see a strong demand in C2C (consumer-to-consumer service), and the existing players in that space aren't doing a perfect job,'Li told the university students in an oblique reference to rivals such as Alibaba.
'We now have a huge user base, and it's just a question of redirecting the traffic we have now to build a strong C2C platform.'
But Li said he had little interest in setting up an e-mail service along the lines of Yahoo's nor would they explore an English-based search site, despite media speculation to the contrary, conceding that rivals did it better.
Li argued that Baidu's connections across China would give it a leg up on efforts to expand beyond its traditional business.
'The set-up cost won't be huge, it's the marketing expense that could be high,'Li said, without giving specifics.
Baidu has been gobbling up market share mainly from smaller rivals and Yahoo. It also overtook Sina.com this year as the largest Web advertising supplier in China, according to a recent report by broker research firm CLSA.
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