The CEO of leading China’s search engine firm, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) Robin Li declared that they prefer buy to build, in time when he explain premier Chinese search engine’s growth strategy during an analyst call previous month. Now he put those words into action, Baidu released that it is spending about $370M to buy the PPS Net that is Internet video business and integrate PPS with its own online video operation, named iQiyi.com.
The firm declares that contract will leapfrog Baidu in advance of competitor Youku Tudou Inc (ADR) (NYSE:YOKU) to make it the top online video firm in China.
It before now enjoys Google-like supremacy of the Chinese search market as well as doesn’t have to worry regarding competing with Google’s YouTube (NASDAQ:GOOG) for the reason that Chinese censors block access to the U.S. firm’s online video service.
The Baidu could use a make better, following years of imposing growth, the firm is sluggish as Chinese Internet users move away from PCs to smartphones and tablets.
As on April 26, Baidu announced that net income for the Q1 had surged 8.5%. Not bad unless it evaluate the result to the average growth in excess of the earlier 5 quarters 64%. The quarterly net income of $331 million was 6.8% lower analyst anticpates.
Shares of Baidu.com, Inc. (ADR) (NASDAQ:BIDU) surged $1.65 or 1.88% to closed at $89.30. The firm recorded sales of 3.62B with net income of 1.70B and not yet offer any dividend.
BIDU stock surged during the trade to the maximum level at $89.88 and during the session traded at the lowest level of $87.60 after opening price of $88.58. The search engine firm BIDU has earning per share of $4.85 while it has 2.14 billion shares outstanding with institutional ownership of 15%.