Google buys a minority stake in a Chinese-language search firm.
Google has acquired a minority stake in Baidu.com, a Chinese-language search firm, expanding the U.S. search giant's reach overseas.
Google, which filed for an approximately $2.7 billion public offering in April, purchased a minority interest in the Chinese search engine. The investment was first reported last week.
Google would not disclose how much money was raised or other details of the investment. Baidu is China's biggest independent Internet search engine and has been one of Google's strongest rivals in China, according to media reports.
In the S-1 statement for Google's initial public offering, the firm notes, "Expansion into international markets is important to our long-term success, and our inexperience in the operation of our business outside the U.S. increases the risk that our international expansion efforts will not be successful."
Kevin Lee, CEO of search engine marketing firm Did-it.com, said of the investment, "I think it's a forward-thinking move on Google's part because they recognize that China and the Asian market are going to be an up-and-coming market. If there's already a brand that is relevant for that marketplace they can still hedge their bets while they build their own Chinese portal as well as having a stake in another branded portal."
A Google representative confirmed the investment but otherwise declined to comment.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.