Baidu Lands $50 Million From U.S. Investors - InformationWeek
Mobile // Mobile Applications
08:45 AM

Baidu Lands $50 Million From U.S. Investors

The deal will help China's largest search engine launch an online video business.

Baidu, the leading search engine in China, will receive a $50 million investment from a U.S. private equity firm to help fund Baidu's new online video company.

In a joint statement released Friday, Baidu and Providence Equity Partners said the money would be used to build into an advertising-supported business that provides "premium licensed content."

Under the deal, Baidu will continue to hold a majority interest in the video company, which is entering a market with "great potential for growth in China," Baidu said.

"Providence is our ideal partner in this space as it has rich experience in investing in and managing businesses that distribute licensed content online," Robin Li, chief executive of Baidu, said in a statement. "With Baidu's strong ability to drive traffic and offer innovative products that suit user needs, we are very excited about the future prospects of this new company."

Baidu's success in China is partly due to its close ties with the Chinese government, which controls the media. The new company will also work closely with regulators.

"The new venture will provide users with a first-class viewing experience, and will work with regulators to ensure the lawful distribution of professionally produced media and entertainment content on the Internet," Jonathan Nelson, chief executive of Providence, headquartered in Providence, R.I., said.

Baidu's strength in the Chinese market grew in China with the announcement last month that chief rival Google would no longer censor search results on the Chinese version of its Web site. The decision is expected to end the company's presence in China.

The decision followed a highly sophisticated cyberattack on Google's corporate infrastructure in December that resulted in the theft of Google's intellectual property. Details about the theft were not disclosed.

The attacks have been linked to two Chinese schools, Shanghai Jiaotong University and the Lanxiang Vocational School. The Chinese government has denied any involvement in the attacks.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of November 6, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll