Thursday, 27 February 2014

Baidu Acquisition Targets


Logical targets for Baidu include the $3.2 billion 58.com, which went public in October and lets users sell everything from cars to computers, according to Cheng at Pacific Crest. The $6.2 billion SouFun Holdings Ltd., (SFUN) China’s biggest real-estate information website, also makes sense as a potential acquisition candidate for the $61 billion company, Cheng said.

Baidu, founded by billionaire Robin Li, yesterday forecast first-quarter sales that beat analysts’ estimates. The company will focus on investment this year, crimping profit growth, as it targets marketing for its mobile applications in search, security and location-based services, Chief Financial Officer Jennifer Li told a conference call.

Representatives for Baidu and 58.com declined to comment. A representative for SouFun didn’t respond to an e-mail or phone call seeking comment.

There’s no sign acquisitions in China will stop, said John Choi, an analyst at Daiwa Securities Group Inc. in Hong Kong. “These Internet companies have been buying companies in areas where they’re weak,” he said. “I expect this to continue.”

Today, Baidu’s ADRs gained 2.5 percent to $177.16.

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