Baidu.com, Inc. (BIDU) Acquires Majority Stake In Nuomi
Baidu.com, Inc. (NASDAQ:BIDU) is spending $160 million to buy a majority stake in Renren subsidiary Nuomi. Nuomi is known as one of the largest group buying websites in China. The Baidu.com, Inc. (NASDAQ:BIDU) stake in Nuomi is now 59%. Renren is considered a Facebook competitor in China. This deal is expected to close in Q4 2013.
Baidu said that Nuomi will “complement” and drive the growth of their mobile and location-based services. Nuomi is one of China’s largest group buying websites and they have around 3.8 million active paying users. Around 30% of their sales are made through mobile devices. Baidu.com, Inc. (NASDAQ:BIDU) is the largest search engine in China.
Baidu.com, Inc. (NASDAQ:BIDU) has been on an acquisition tear lately. Before reporting profits of $430.8 million in Q2 2013, Baidu.com, Inc. (NASDAQ:BIDU) acquired a mobile app store company for $1.9 billion called Wireless 91. This past May, Baidu.com, Inc. (NASDAQ:BIDU) bought PPS for $370 million.
Nuomi has a 5.9% marketshare of China’s group buying market. The largest group buying website in China is Juhuasuan, which has a 33.6% market share. Juhuasuan is also owned by Alibaba Group.
[Source: PCW]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry