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Baidu to make more acquisitions in mobile in 2014

By Meng Jing (China Daily) Updated: 2014-02-28 08:22

In addition to organic growth, Baidu made a move to boost its mobile business by purchasing app store 91 Wireless for $1.9 billion in August last year. The move contributed to the increasing share of mobile business in Baidu's revenue mixture.

Baidu to make more acquisitions in mobile in 2014

Baidu to make more acquisitions in mobile in 2014

According to Li, the more-than-20-percent of Baidu's total revenue contributed by mobile in the fourth quarter of last year was up from 10 percent in the second quarter in the same year.

However, analysts say Baidu still has a lot to do to catch up with Tencent and Alibaba in terms of mobile expansion.

Tencent, owner of the wildly popular mobile messaging app WeChat, and China's e-commerce king Alibaba, are in the race to dominate China's mobile Internet world with aggressive investments.

Both Tencent and Alibaba have spent big on acquisitions. Earlier this month, Alibaba offered to buy full control of digital mapping company AutoNavi Software Co Ltd. The two companies are also in a battle to lead China's taxi-booking app industries by offering cash backs to taxi drivers and passengers.

"Both Tencent and Alibaba have established their territory in mobile payment and mobile social apps and they are likely to continue to invest heavily in mobile businesses. However, Baidu has been 'quiet' (without making any moves) after acquiring 91 Wireless," said Lu Jingyu, an analyst of mobile Internet with iResearch Consulting Group.

Compared with Tencent and Alibaba, which are eager to build up a mobile ecosystem, Baidu seems focused only gateway entyerprises, said Lu.

She said it would be difficult for Baidu to find an appropriate candidate to acquire because most of them have already been taken over by other Internet giants.

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