Baidu updated its blog service, Baidu Space, with
SNS functions on December 29. Baidu Space has
changed its old "setup" page to a "management center"
that allows users to reply to visitors' comments and
messages.
Tuesday, December 30, 2008
Monday, December 29, 2008
Lenovo senior director to join Baidu
Zhu Guang, senior director for Lenovo (LNVGY),
Greater China, public relations and promotions, will
depart from his position at the end of December
2008. According to the reports in local media, prior rumors
stated that Zhu planned to resign because of the
unsatisfactory promotion of Lenovo during the 2008
Beijing Olympic Games. In addition, Sina.com reported
by citing "reliable sources" that Zhu will join Chinese
search engine Baidu.com in two weeks and be in charge
of Baidu's marketing division. Zhu neither confirmed nor
denied the news, while Baidu did not comment on it.
Joining Lenovo in 1998, Zhu has been responsible for
Lenovo's brand and production promotion in China as
well as public relations and internal communications.
Greater China, public relations and promotions, will
depart from his position at the end of December
2008. According to the reports in local media, prior rumors
stated that Zhu planned to resign because of the
unsatisfactory promotion of Lenovo during the 2008
Beijing Olympic Games. In addition, Sina.com reported
by citing "reliable sources" that Zhu will join Chinese
search engine Baidu.com in two weeks and be in charge
of Baidu's marketing division. Zhu neither confirmed nor
denied the news, while Baidu did not comment on it.
Joining Lenovo in 1998, Zhu has been responsible for
Lenovo's brand and production promotion in China as
well as public relations and internal communications.
Wednesday, December 24, 2008
More unlicensed companies still advertising on Baidu
The first 25 results in a Baidu search for water heater
maintenance information were for unlicensed companies,
reports Changjiang Daily quoting a water heater
company customer service manager surnamed Zheng.
maintenance information were for unlicensed companies,
reports Changjiang Daily quoting a water heater
company customer service manager surnamed Zheng.
Changes to ad display
Baidu plans to move its bid ranking service search
results from the bottom of the first page to right side
of the second page for companies whose purchasing
price was lower than other current offers. The change
will be effective January 5.
Baidu began offering pay-per-action advertising in
mid-December, reports 21cn.com. The company
provides text, picture and flash advertising on tens of
thousands of Baidu Union member sites, said the
report.
results from the bottom of the first page to right side
of the second page for companies whose purchasing
price was lower than other current offers. The change
will be effective January 5.
Baidu began offering pay-per-action advertising in
mid-December, reports 21cn.com. The company
provides text, picture and flash advertising on tens of
thousands of Baidu Union member sites, said the
report.
Baidu wins the 5fad music lawsuit
Baidu was ruled not guilty of copyright violation by
the Beijing Higher People's Court in a lawsuit brought
by Hangzhou-based online digital music provider
5fad.com, reports the Beijing Morning Post. This was
5fad's sixth suit against Baidu, asking for a compensation
ofrequired Baidu to pay compensation of RMB 100 million.
Baidu was not convicted of copyright violation because it
provides an online location for links to music, rather than
uploading and storing unauthorized titles, said the report.
the Beijing Higher People's Court in a lawsuit brought
by Hangzhou-based online digital music provider
5fad.com, reports the Beijing Morning Post. This was
5fad's sixth suit against Baidu, asking for a compensation
ofrequired Baidu to pay compensation of RMB 100 million.
Baidu was not convicted of copyright violation because it
provides an online location for links to music, rather than
uploading and storing unauthorized titles, said the report.
Tuesday, December 23, 2008
Brandlink ads
Baidu is currently developing a new search advertising
model named BrandLink. According to local media reports,
Baidu's new BrandLink area, which is laced at the top of
Baidu's web search results, is an information dissemination
platform customized for famous brands. This innovative
search model combines various display methods, including
words, pictures and videos, which can improve the search
experience of Chinese netizens using the search engine.
The BrandLink advertisement area is separated from the
common search results by a horizontal line with picture
advertisements on the right side of the page, providing a
space for the display of products. As a proper
supplementation to Baidu's bidding rank system, the
BrandLink model may gain more brand advertisers for
Baidu. The company says that so far, many major brands
such as Lenovo, Dell, Samsung, Mercedes-Benz and Audi
have started their BrandLink marketing on Baidu.
model named BrandLink. According to local media reports,
Baidu's new BrandLink area, which is laced at the top of
Baidu's web search results, is an information dissemination
platform customized for famous brands. This innovative
search model combines various display methods, including
words, pictures and videos, which can improve the search
experience of Chinese netizens using the search engine.
The BrandLink advertisement area is separated from the
common search results by a horizontal line with picture
advertisements on the right side of the page, providing a
space for the display of products. As a proper
supplementation to Baidu's bidding rank system, the
BrandLink model may gain more brand advertisers for
Baidu. The company says that so far, many major brands
such as Lenovo, Dell, Samsung, Mercedes-Benz and Audi
have started their BrandLink marketing on Baidu.
Friday, December 19, 2008
Susquehanna positive on Baidu
"Medical ad incidence is perceived as a "reset"
point at Baidu, from which on Baidu should grow
on a healthier path. The consequence is, the
market may underestimate Baidu's growth
by only looking at growth of CY09/CY08. Baidu's
growth in CY10/CY09 should re-accelerate due
to Y/Y comparison singling out medical ad
impact, a more mature eCommerce environment,
as well as recovery in the macro economy, in our
view. Baidu's C2C initiative is a different strategy
than Tencent's Paipai, and different than its
Japan venture. We fine-tuned our 4Q08
estimates to be in-line with Baidu's revised
guidance, and believe 2Q guidance will be a
better catalyst than 1Q guidance. Baidu shares
remain attractive relative to its growth
potential."
point at Baidu, from which on Baidu should grow
on a healthier path. The consequence is, the
market may underestimate Baidu's growth
by only looking at growth of CY09/CY08. Baidu's
growth in CY10/CY09 should re-accelerate due
to Y/Y comparison singling out medical ad
impact, a more mature eCommerce environment,
as well as recovery in the macro economy, in our
view. Baidu's C2C initiative is a different strategy
than Tencent's Paipai, and different than its
Japan venture. We fine-tuned our 4Q08
estimates to be in-line with Baidu's revised
guidance, and believe 2Q guidance will be a
better catalyst than 1Q guidance. Baidu shares
remain attractive relative to its growth
potential."
Thursday, December 18, 2008
Phoenix Holdings ifeng.com joins Baidu alliance
Phoenix Satellite Television Holdings' (8002.HK)
portal ifeng.com has joined the Baidu Union
advertising alliance, reports Nanfang Daily. The
search partnership will involve the promotion of
brand and user products, said ifeng.com marketing
director Luo Di. Shenzhen-based download software
provider Xunlei.com joined Baidu Union on
December 12.
portal ifeng.com has joined the Baidu Union
advertising alliance, reports Nanfang Daily. The
search partnership will involve the promotion of
brand and user products, said ifeng.com marketing
director Luo Di. Shenzhen-based download software
provider Xunlei.com joined Baidu Union on
December 12.
New search platform
Robin Li announced an enhanced "Aladdin" search
platform, which will grab data from currently
inaccessible "deep web" sites, at the inaugural
ceremony of its Shanghai research and development
center on Thursday, reports DoNews. Company
CTO Yinan Li said more than half of the company's
2,000 core engineers are working on the platform
which will be released in January 2009, reports Sina.
Baidu intends to establish a Tokyo R&D center in the
future, reports Sina quoting Li from the ceremony.
platform, which will grab data from currently
inaccessible "deep web" sites, at the inaugural
ceremony of its Shanghai research and development
center on Thursday, reports DoNews. Company
CTO Yinan Li said more than half of the company's
2,000 core engineers are working on the platform
which will be released in January 2009, reports Sina.
Baidu intends to establish a Tokyo R&D center in the
future, reports Sina quoting Li from the ceremony.
Robin Li searching for a new CEO
Robin Li told Sohu in an interview Thursday that
he is still looking for the best person to lead Baidu
as chief executive. Li said he only became CEO in
2005 due to the company's Nasdaq listing, and has
always been on the lookout for a replacement. The
chief executive said Baidu page views have remained
high and have not fallen since reports of a paid search
scandal shook the industry last month.
he is still looking for the best person to lead Baidu
as chief executive. Li said he only became CEO in
2005 due to the company's Nasdaq listing, and has
always been on the lookout for a replacement. The
chief executive said Baidu page views have remained
high and have not fallen since reports of a paid search
scandal shook the industry last month.
Wednesday, December 17, 2008
Youku blocks search engines
Baidu, Google and Yahoo. Per Baidu, 30 to 40% of
traffic to video sharing sites in China originate from
Baidu's video search. Youku seems to be scaling
back on bandwidth.
traffic to video sharing sites in China originate from
Baidu's video search. Youku seems to be scaling
back on bandwidth.
Baidu helping SMEs put up websites
Robin Lee told the local media that Baidu has
initiated a nationwide campaign to construct
websites and optimize web content for
500,000 small and medium enterprises free of
charge. Shen Haoyu, vice president of Baidu said
that SMEs have become an important force for
China's economic development, but quite a number
of them do not have a website or have a very simple
website even though their business has already
expanded to the whole country or even the whole
world. According to Shen, Baidu has built websites
or optimized website content for free for over ten
thousand businesses. Lee disclosed that Baidu will
invest over CNY100 million to provide the free
service and relevant training.
initiated a nationwide campaign to construct
websites and optimize web content for
500,000 small and medium enterprises free of
charge. Shen Haoyu, vice president of Baidu said
that SMEs have become an important force for
China's economic development, but quite a number
of them do not have a website or have a very simple
website even though their business has already
expanded to the whole country or even the whole
world. According to Shen, Baidu has built websites
or optimized website content for free for over ten
thousand businesses. Lee disclosed that Baidu will
invest over CNY100 million to provide the free
service and relevant training.
Tuesday, December 16, 2008
Results of annual shareholder meeting
Shareholders approved the previously announced stock
repurchase plan.
Also approved company's name change from baidu.com inc
to plain baidu inc.
Adopted a new 2008 share incentive plan (presumably for
employees).
repurchase plan.
Also approved company's name change from baidu.com inc
to plain baidu inc.
Adopted a new 2008 share incentive plan (presumably for
employees).
Baidu denied change of court for clickfraud case
The Shenzhen Futian District People's Court has rejected
Baidu's request to move a "fraudulent clicks" case from
Shenzhen to Beijing's Haidian District, reports Information
Times. A lawyer and Baidu bid ranking client surnamed
Huang filed the RMB 40,000 case against Baidu and its
Shenzhen subsidiary on August 5 after finding differences
in data provided by Baidu and a third-party software, said
the report.
Baidu's request to move a "fraudulent clicks" case from
Shenzhen to Beijing's Haidian District, reports Information
Times. A lawyer and Baidu bid ranking client surnamed
Huang filed the RMB 40,000 case against Baidu and its
Shenzhen subsidiary on August 5 after finding differences
in data provided by Baidu and a third-party software, said
the report.
Goldman: buy
PT $145. Believes Baidu will grow at 30% for the next
several years, supported by the Chinese government,
which can't let Google win there. Believes company's
growth rate will exceed GDP growth because the
market is nascent.
First time ever, GS has had a buy on Baidu. The logic
seems weak though - these factors have always been
in play.
several years, supported by the Chinese government,
which can't let Google win there. Believes company's
growth rate will exceed GDP growth because the
market is nascent.
First time ever, GS has had a buy on Baidu. The logic
seems weak though - these factors have always been
in play.
Monday, December 15, 2008
Pali research: sell
Price target $90. Believes business model under
challenge, and new regulations likely to impact
search. Model different from Google's with
ads sprinkled in with natural search results.
challenge, and new regulations likely to impact
search. Model different from Google's with
ads sprinkled in with natural search results.
Xunlei joins Baidu alliance
One of the largest Chinese download service provides
Xunlei has joined Baidu Alliance, which means Xunlei's
users will be able to directly use Baidu.com's search box
embedded in the products of Xunlei. Xunlei and Baidu
Alliance formally signed a cooperative agreement at the
beginning of November 2008, but only now is the
partnership being disclosed.
With this agreement, Xunlei will cooperate with Baidu
Alliance in all of its products, ranging from its search
engine Gougou to client. Internet search engine Baidu
says the joining of Xunlei once again shows the attraction
of Baidu Alliance to quality network resources. In regards
to the cooperation between Xunlei and Baidu, Xunlei's
marketing director Zhang Yubo told local media it is
simple business cooperation. Through this cooperation,
Baidu will supply search results for Xunlei and Xunlei
will integrate Baidu's toolbar in its products.
Prior to this, Xunlei achieved a strategic cooperation with
Google in 2007, according to which Google and Xunlei
would implement cooperation in many sectors, including
products, technology and marketing and Google would
provide overall search support to the users of Xunlei.
In addition, Xunlei has gained strategic investment from
Google. Although neither side has revealed the detailed
amount, industry insiders speculate the number might
be as much as USD5 million.
Xunlei has joined Baidu Alliance, which means Xunlei's
users will be able to directly use Baidu.com's search box
embedded in the products of Xunlei. Xunlei and Baidu
Alliance formally signed a cooperative agreement at the
beginning of November 2008, but only now is the
partnership being disclosed.
With this agreement, Xunlei will cooperate with Baidu
Alliance in all of its products, ranging from its search
engine Gougou to client. Internet search engine Baidu
says the joining of Xunlei once again shows the attraction
of Baidu Alliance to quality network resources. In regards
to the cooperation between Xunlei and Baidu, Xunlei's
marketing director Zhang Yubo told local media it is
simple business cooperation. Through this cooperation,
Baidu will supply search results for Xunlei and Xunlei
will integrate Baidu's toolbar in its products.
Prior to this, Xunlei achieved a strategic cooperation with
Google in 2007, according to which Google and Xunlei
would implement cooperation in many sectors, including
products, technology and marketing and Google would
provide overall search support to the users of Xunlei.
In addition, Xunlei has gained strategic investment from
Google. Although neither side has revealed the detailed
amount, industry insiders speculate the number might
be as much as USD5 million.
Thursday, December 11, 2008
Q4 08 revenue outlook cut 13%
from the earlier range of $151 to $155 million to
the new target: $131 to $133 million. Cites a
combination of pulling unlicensed advertisers
and a slowing economy.
the new target: $131 to $133 million. Cites a
combination of pulling unlicensed advertisers
and a slowing economy.
Wednesday, December 10, 2008
JP Morgan and Pacific crest cut estimates
Dick Wei of JPM cut earnings forecasts 5% for
this year and 19% for 2009, citing weaker revenue
from the medical and pharmaceutical sector, as well as
macro economic conditions affecting online ad spending
by small- and medium-sized businesses. Estimates
GAAP EPS of $4.44 this year and $5.92 next year;
the Street averages were $4.62, and $6.30. Maintains
Overweight rating and $300 target, asserting that the
company over time should maintain its market
leadership in search in China.
Pacific Crest’s Steve Weinstein sees slower customer
growth in Q4 in some regions due to the weakening
economy and the fallout from the health-care advertising
controversy. Cut his 2008 EPS estimate to $4.55 from
$4.81; for 2009 to $6.42, from $7.71. Maintains Outperform
rating, with a $250 price target, based on 40x 2009 EPS
estimate. Weinstein says the long-term story is intact, and
that P/E will likely expand when the market and economy
improve.
this year and 19% for 2009, citing weaker revenue
from the medical and pharmaceutical sector, as well as
macro economic conditions affecting online ad spending
by small- and medium-sized businesses. Estimates
GAAP EPS of $4.44 this year and $5.92 next year;
the Street averages were $4.62, and $6.30. Maintains
Overweight rating and $300 target, asserting that the
company over time should maintain its market
leadership in search in China.
Pacific Crest’s Steve Weinstein sees slower customer
growth in Q4 in some regions due to the weakening
economy and the fallout from the health-care advertising
controversy. Cut his 2008 EPS estimate to $4.55 from
$4.81; for 2009 to $6.42, from $7.71. Maintains Outperform
rating, with a $250 price target, based on 40x 2009 EPS
estimate. Weinstein says the long-term story is intact, and
that P/E will likely expand when the market and economy
improve.
Monday, December 8, 2008
Phoenix nest to be rolled out sooner
Baidu plans to officially release its right-column
advertising system, "Phoenix Nest," in the second
quarter of 2009, reports qq.com citing sources.
September reports said the new system, similar to
Google AdWords, would be released soon, but Baidu
has yet to announce a release date. The report said
Baidu planned to spend three years developing the
new product, but has speeded the release in response
to recent press. China Central Television (CCTV)
reported that Baidu included unlicensed companies
in its paid search on November 15.
advertising system, "Phoenix Nest," in the second
quarter of 2009, reports qq.com citing sources.
September reports said the new system, similar to
Google AdWords, would be released soon, but Baidu
has yet to announce a release date. The report said
Baidu planned to spend three years developing the
new product, but has speeded the release in response
to recent press. China Central Television (CCTV)
reported that Baidu included unlicensed companies
in its paid search on November 15.
Friday, December 5, 2008
Goldman cuts estimates
“Following a meeting with management, we believe
that Baidu is suffering from advertisers bidding less
in certain categories such as manufacturing and
logistics, due to reduced confidence and, in some
cases, bankruptcies,” he writes. “Baidu’s revenue
may be more performance-driven than other China
media but less performance-driven than search engines
elsewhere because many of its advertisers use search
to support brands rather than drive online
transactions. We do not believe consumers are
clicking less often on sponsored results yet, though
they may do so in the future.”
Mitchell cut estimates on the company following
its recent suspension of search ads from unlicensed
health-care advertisers; today he cuts numbers
again. For 2008, his EPS estimate drops by 2%,
to $4.81. For 2009, he cuts by 11%, to $6.60, and
for 2010 he comes down 20%, to $8.54. He adds
that Baidu “appears willing to consider removing
paid listings from the left-hand side of its results
page,” which would reduce the numbers even
further.
Mitchell has slashed his price target on the stock
to $145, from $225, reflecting both lower
estimates and a lower target 2009 P/E multiple
of 22x, versus 30x previously, “as Baidu may be
proving cyclical earlier than we expected.” He
maintains a Neutral rating on the stock.
that Baidu is suffering from advertisers bidding less
in certain categories such as manufacturing and
logistics, due to reduced confidence and, in some
cases, bankruptcies,” he writes. “Baidu’s revenue
may be more performance-driven than other China
media but less performance-driven than search engines
elsewhere because many of its advertisers use search
to support brands rather than drive online
transactions. We do not believe consumers are
clicking less often on sponsored results yet, though
they may do so in the future.”
Mitchell cut estimates on the company following
its recent suspension of search ads from unlicensed
health-care advertisers; today he cuts numbers
again. For 2008, his EPS estimate drops by 2%,
to $4.81. For 2009, he cuts by 11%, to $6.60, and
for 2010 he comes down 20%, to $8.54. He adds
that Baidu “appears willing to consider removing
paid listings from the left-hand side of its results
page,” which would reduce the numbers even
further.
Mitchell has slashed his price target on the stock
to $145, from $225, reflecting both lower
estimates and a lower target 2009 P/E multiple
of 22x, versus 30x previously, “as Baidu may be
proving cyclical earlier than we expected.” He
maintains a Neutral rating on the stock.
Thursday, December 4, 2008
CIIRC warns Baidu of pornographic content
Baidu received on Dec. 2 a public warning from the China
Internet Illegal Information Reporting Centre (CIIRC) for
displaying pornographic content.
Internet Illegal Information Reporting Centre (CIIRC) for
displaying pornographic content.
Tuesday, November 25, 2008
Youa product statistics
Baidu has announced that its C2C e-commerce platform
"YouA" is now home to 10 mln products and over 100,000
sellers, with an average of more than 100 products per
seller. The number of products for sale on the site is
increasing by several tens of thousands daily.
(SinaTech)
"YouA" is now home to 10 mln products and over 100,000
sellers, with an average of more than 100 products per
seller. The number of products for sale on the site is
increasing by several tens of thousands daily.
(SinaTech)
Monday, November 24, 2008
New racing game added
Baidu has partnered with Shanghai-based online game
company Radiance Software to add Radiance's webgame
"Go! Go! Racing" to its webgame platform
(wanba.baidu.com), reports Cnetnews.com. This is the first
racing game on Baidu's webgame platform.
company Radiance Software to add Radiance's webgame
"Go! Go! Racing" to its webgame platform
(wanba.baidu.com), reports Cnetnews.com. This is the first
racing game on Baidu's webgame platform.
Thursday, November 20, 2008
Phoenix nest - new ad system - to be rolled out
Robin Li, CEO, said today that Baidu will roll out a new
advertising system, "Phoenix Nest," designed to resolve
recent user problems and complaints regarding Baidu's
competitive ranking system. Baidu VP Shen Haoyu said
that the new beta advertising system will display paid
links and keywords on the right of the page, and will
suggest more flexible keywords to clients. Shen did not
divulge any specific details as to when the new system
would go online.
According to an industry insider who has seen the new
system, Phoenix Nest is comparable to Google's AdWords
in terms of functionality. It provides a number of new
functions including domain-targeted advertisements,
keyword recommendation services, budget planning tools,
lowest-price display, and round-robin advertisement
display functionality. Reporting information generated for
advertisers will include expanded information on statistics
across a number of indicators. A source at Baidu claims that
the new functionality in Phoenix Nest will help solve the
company's previous problems in providing sufficient data
to advertisers.
At the same time, Baidu COO Ye Peng said that the
employees shown to have been complicit in listing false
advertisements by CCTV would be dismissed.
advertising system, "Phoenix Nest," designed to resolve
recent user problems and complaints regarding Baidu's
competitive ranking system. Baidu VP Shen Haoyu said
that the new beta advertising system will display paid
links and keywords on the right of the page, and will
suggest more flexible keywords to clients. Shen did not
divulge any specific details as to when the new system
would go online.
According to an industry insider who has seen the new
system, Phoenix Nest is comparable to Google's AdWords
in terms of functionality. It provides a number of new
functions including domain-targeted advertisements,
keyword recommendation services, budget planning tools,
lowest-price display, and round-robin advertisement
display functionality. Reporting information generated for
advertisers will include expanded information on statistics
across a number of indicators. A source at Baidu claims that
the new functionality in Phoenix Nest will help solve the
company's previous problems in providing sufficient data
to advertisers.
At the same time, Baidu COO Ye Peng said that the
employees shown to have been complicit in listing false
advertisements by CCTV would be dismissed.
Analyst action: GS, CS, Needham, RBC
GS cuts price target from $260 to $225, still double
the current price. CS cuts target $184 to $138, but
raises rating from underperform to neutral. Needham
upgrades to buy. RBC reiterates outperform, but lowered
target from $347 to $242. Piper has a street-high target
of $465.
the current price. CS cuts target $184 to $138, but
raises rating from underperform to neutral. Needham
upgrades to buy. RBC reiterates outperform, but lowered
target from $347 to $242. Piper has a street-high target
of $465.
Wednesday, November 19, 2008
Baidu's press release
China Central Television (”CCTV”), the largest
state-owned television network in China, reported in
its program “News in 30 Minutes” on November 15
and 16 that Baidu had been including websites of
medical companies that do not hold proper licenses in
its paid search listings for some popular medical terms,
while excluding certain websites which did not buy keywords.
Shortly after the CCTV program was broadcast, Baidu
initiated dialogue with CCTV regarding this matter.
At the same time, Baidu removed paid search listings
of certain customers, particularly medical and
pharmaceutical customers without licenses on file with
Baidu. Baidu will allow these customers to resume access
to Baidu’s P4P paid search platform once their relevant
licenses are provided to and reviewed by Baidu. These
customers account for approximately 10-15% of Baidu’s
total revenues. Baidu believes this immediate measure
is the most prudent way to protect the interests of
Baidu’s users.
Currently, it is difficult to estimate how many removed
customers will provide relevant licenses to Baidu and
when they will do so. Baidu will work closely with
customers to ensure those customers with proper
licenses will be able to access Baidu’s services again
quickly. While Baidu is currently uncertain about the
near term financial impact of this prudent measure,
Baidu does not believe it would have significant impact
on Baidu’s results in the long term. On November 17, 2008,
Baidu issued a public statement in China, acknowledging
that there could be cases where certain companies take
advantage of Baidu’s paid search platform for
questionable purposes. Baidu is committed to social
responsibility and will continue to improve its sales and
operational systems commensurate with its status as
the leading Chinese language Internet search provider.
Separately, Baidu would like to affirm that Baidu has never
excluded websites of any customers because they did not
pay for keywords, and Baidu does not tolerate such practices.
state-owned television network in China, reported in
its program “News in 30 Minutes” on November 15
and 16 that Baidu had been including websites of
medical companies that do not hold proper licenses in
its paid search listings for some popular medical terms,
while excluding certain websites which did not buy keywords.
Shortly after the CCTV program was broadcast, Baidu
initiated dialogue with CCTV regarding this matter.
At the same time, Baidu removed paid search listings
of certain customers, particularly medical and
pharmaceutical customers without licenses on file with
Baidu. Baidu will allow these customers to resume access
to Baidu’s P4P paid search platform once their relevant
licenses are provided to and reviewed by Baidu. These
customers account for approximately 10-15% of Baidu’s
total revenues. Baidu believes this immediate measure
is the most prudent way to protect the interests of
Baidu’s users.
Currently, it is difficult to estimate how many removed
customers will provide relevant licenses to Baidu and
when they will do so. Baidu will work closely with
customers to ensure those customers with proper
licenses will be able to access Baidu’s services again
quickly. While Baidu is currently uncertain about the
near term financial impact of this prudent measure,
Baidu does not believe it would have significant impact
on Baidu’s results in the long term. On November 17, 2008,
Baidu issued a public statement in China, acknowledging
that there could be cases where certain companies take
advantage of Baidu’s paid search platform for
questionable purposes. Baidu is committed to social
responsibility and will continue to improve its sales and
operational systems commensurate with its status as
the leading Chinese language Internet search provider.
Separately, Baidu would like to affirm that Baidu has never
excluded websites of any customers because they did not
pay for keywords, and Baidu does not tolerate such practices.
Citi downgrades to sell
Jason Brueschke today cut his rating on Baidu to
Sell from Buy, slashing his price target to $110,
from $300. Brueschke today writes that he sees
four risks for the stock from here:
Consumer health categories are likely among the
most lucrative and thus “earnings could be impacted
even more than revenues.”
Other suspect categories may come under scrutiny,
including health and beauty products, lottery tickets
and fraudulent tax receipts.
Baidu’s reputation “has taken a big hit, and there is a
risk of a slowdown in query traffic growth.”
The company may have to change its search results
display to clearly separate paid and organic results,
“which could impact revenues further.”
Tuesday, November 18, 2008
Isobar partners with Baidu
Isobar, Aegis Media’s digital network, is seeking to grow
its search marketing facility in China with the launch of
its search engine optimisation service iProspect on the
mainland.
The initiative will incorporate Baidu’s application
programming interface (API) into Isobar’s global search
engine tool Iseba (iProspect search engine bidding agent).
The integration, which will be implemented by wwwins
Consulting, will reportedly enable campaign optimisation
across all search engines in China from a single online
platform. Anthony Yu, the firm’s search director, explained
that the service would employ an ‘intelligent’ system to
recognize online consumer behavior and make adjustments
accordingly within the parameters of a capped rate specified
by clients.
iProspect currently operates in a number of Asian markets,
including Hong Kong, Singapore, Thailand, Malaysia, Australia
and New Zealand in conjunction with Google and Yahoo.
wwwins’ clients in Greater China include adidas, Coca Cola,
P&G, Nissan and HSBC among others.
its search marketing facility in China with the launch of
its search engine optimisation service iProspect on the
mainland.
The initiative will incorporate Baidu’s application
programming interface (API) into Isobar’s global search
engine tool Iseba (iProspect search engine bidding agent).
The integration, which will be implemented by wwwins
Consulting, will reportedly enable campaign optimisation
across all search engines in China from a single online
platform. Anthony Yu, the firm’s search director, explained
that the service would employ an ‘intelligent’ system to
recognize online consumer behavior and make adjustments
accordingly within the parameters of a capped rate specified
by clients.
iProspect currently operates in a number of Asian markets,
including Hong Kong, Singapore, Thailand, Malaysia, Australia
and New Zealand in conjunction with Google and Yahoo.
wwwins’ clients in Greater China include adidas, Coca Cola,
P&G, Nissan and HSBC among others.
Suspended customers worth 10 to 15% of revenue
Baidu said Tuesday it has been in contact with CCTV and has
suspended customers worth about 10 percent to 15 percent
of the company's revenue. Unclear how many of these
can actually produce a licence to sell drugs. Long-term, the
company thinks there is no significant impact. Baidu is hosting
a conference call at 7:00 AM, Nov 19th, with analysts to
clarify the issue.
suspended customers worth about 10 percent to 15 percent
of the company's revenue. Unclear how many of these
can actually produce a licence to sell drugs. Long-term, the
company thinks there is no significant impact. Baidu is hosting
a conference call at 7:00 AM, Nov 19th, with analysts to
clarify the issue.
Monday, November 17, 2008
Analyst reaction: Sterne Agee positive
Sterne Agee & Leach analyst James Lee said Monday that
a report by CCTV over the weekend into medical malpractice
in China indicated some consumers may have found their way
to improperly licensed or unlicensed private clinics and health
centers via advertisements that came up when they searched
for health-related topics on Baidu. Baidu, which holds a
70 percent share of the search market in China, removed the
ads for medical practitioners that were considered questionable
over the weekend, Lee said. He sees the report as hurting Baidu's
reputation, but doesn't think it will be hurt financially as much
as Monday's share price decline seemed to indicate. Lee doesn't
think health-related ads make up that much of the company's
total advertising."The stock is obviously overreacting," he said.
a report by CCTV over the weekend into medical malpractice
in China indicated some consumers may have found their way
to improperly licensed or unlicensed private clinics and health
centers via advertisements that came up when they searched
for health-related topics on Baidu. Baidu, which holds a
70 percent share of the search market in China, removed the
ads for medical practitioners that were considered questionable
over the weekend, Lee said. He sees the report as hurting Baidu's
reputation, but doesn't think it will be hurt financially as much
as Monday's share price decline seemed to indicate. Lee doesn't
think health-related ads make up that much of the company's
total advertising."The stock is obviously overreacting," he said.
Analyst reaction: Piper Jaffray positive
In a client note, Piper Jaffray analyst Gene Munster said
the questionable ads on Baidu "were typically selling drugs;
we do not believe these are fake drugs per se, but were being
sold through non-accredited medical Web sites that should not
score as high on sponsored results."Munster said that Baidu
acknowledged in an online statement that this is true and that
it has to put more focus toward sales practices, not just its technology.
He thinks the company will see a financial impact, but believes it
will be "less than one would expect." Around 1 - 3%. Munster
leaves his "buy" rating, and price target of $468 unchanged.
Heavily bullish.
the questionable ads on Baidu "were typically selling drugs;
we do not believe these are fake drugs per se, but were being
sold through non-accredited medical Web sites that should not
score as high on sponsored results."Munster said that Baidu
acknowledged in an online statement that this is true and that
it has to put more focus toward sales practices, not just its technology.
He thinks the company will see a financial impact, but believes it
will be "less than one would expect." Around 1 - 3%. Munster
leaves his "buy" rating, and price target of $468 unchanged.
Heavily bullish.
Analyst reaction: Merrill Lynch negative
Merrill Lynch analyst Eddie Leung wrote to clients that
he expects "lower monetization on the pharmaceutical sector
and conservatively some extra impact on traffic and advertiser
growth." He lowered his 2009 revenue estimate by 17 percent
and his earnings-per-share estimate by 22 percent.
Analyst reaction: Morgan Stanley negative
This morning, Morgan Stanley’s Richard Ji noted that
China Central Television over the last two days called
China-based Internet search engine Baidu’s (BIDU) paid
listing practices “questionable,” in particular asserting that
“unauthorized and non-licensed medical web sites” had
captured the top listing positions ahead of legitimate web
sites, due to their willingness to pay higher prices for
popular keywords like “cancer” and “sexually transmitted
diseases.”
Ji notes that, according to the report, sites such
as tongnian.com, “a charity portal for youngsters,” are
“largely blocked from Baidu’s listings as they are unable to
afford keywords due to lack of financial resources.” Ji points
out that CCTV reports on several previous occasions have
meant big trouble for China-based public companies. In March,
he notes, Focus Media (FMCN) was the subject of a CCTV
program that singled out the company as a major source of
mobile phone spam; the company’s shares fell 35% within a
month. He also notes that Mengniu and Eli, two leader milk
producers in China, saw share prices drop 40%-60% after
CCTV reported their products were contaminated by melamine.
According to Ji, Baidu mixes its search results with sponsored
listings, “which may weaken search users’ experience.” He says
that, according to a survey by Sina.com, over 75% of a group of
5,900 users reported being confused by Baidu’s search results.
Ji notes that Baidu as of Friday was trading at a P/E in the
mid-30s based on 2008 forecasts, one of the highest multiples
among the China-based companies he follows.
China Central Television over the last two days called
China-based Internet search engine Baidu’s (BIDU) paid
listing practices “questionable,” in particular asserting that
“unauthorized and non-licensed medical web sites” had
captured the top listing positions ahead of legitimate web
sites, due to their willingness to pay higher prices for
popular keywords like “cancer” and “sexually transmitted
diseases.”
Ji notes that, according to the report, sites such
as tongnian.com, “a charity portal for youngsters,” are
“largely blocked from Baidu’s listings as they are unable to
afford keywords due to lack of financial resources.” Ji points
out that CCTV reports on several previous occasions have
meant big trouble for China-based public companies. In March,
he notes, Focus Media (FMCN) was the subject of a CCTV
program that singled out the company as a major source of
mobile phone spam; the company’s shares fell 35% within a
month. He also notes that Mengniu and Eli, two leader milk
producers in China, saw share prices drop 40%-60% after
CCTV reported their products were contaminated by melamine.
According to Ji, Baidu mixes its search results with sponsored
listings, “which may weaken search users’ experience.” He says
that, according to a survey by Sina.com, over 75% of a group of
5,900 users reported being confused by Baidu’s search results.
Ji notes that Baidu as of Friday was trading at a P/E in the
mid-30s based on 2008 forecasts, one of the highest multiples
among the China-based companies he follows.
CCTV segment
According to Morgan Stanley, CCTV, China Central
Television, called Baidu's paid listing practice questionable
given unauthorized non-licensed websites that are listed
ahead of legitimate websites and other websites that are
largely blocked because they don't have the financial
resources to afford keywords. The firm said
Focus Media (FMCN) was the subject of a similar incident
by CCTV in March, 2008, and shares went down 35% in
a month.
Television, called Baidu's paid listing practice questionable
given unauthorized non-licensed websites that are listed
ahead of legitimate websites and other websites that are
largely blocked because they don't have the financial
resources to afford keywords. The firm said
Focus Media (FMCN) was the subject of a similar incident
by CCTV in March, 2008, and shares went down 35% in
a month.
Sunday, November 16, 2008
MCSC music lawsuit settled
The Music Copyright Society of China (MCSC) and
Baidu have agreed to settle their copyright infringement
dispute out of court. Originally, the MCSC sued
Baidu in the Beijing Haidian District People's Court,
requesting RMB 1 mln in compensation for infringement
of its copyright on over 50 songs. The MCSC had held that
Baidu was violating its copyright by providing song lyrics
to web surfers. A spokesperson for Baidu claimed the
company was not infringing on copyright, and only using
Internet search and caching technology to provide a passive
search of music lyrics.
Baidu have agreed to settle their copyright infringement
dispute out of court. Originally, the MCSC sued
Baidu in the Beijing Haidian District People's Court,
requesting RMB 1 mln in compensation for infringement
of its copyright on over 50 songs. The MCSC had held that
Baidu was violating its copyright by providing song lyrics
to web surfers. A spokesperson for Baidu claimed the
company was not infringing on copyright, and only using
Internet search and caching technology to provide a passive
search of music lyrics.
Monday, November 10, 2008
Another, smaller, lawsuit against Baidu
An RMB174.4 million lawsuit for manipulating its search results
for medical information site www.qmyyw.com.
Qmyyw.com's suit claims that Baidu search results now
exclude Qmyyw.com's content following the company's reduction
in its payment for Baidu's bid ranking service. Citing reports from
the Southern Metropolis Weekly, the rumor points out that
Qmyyw.com purchased a number 3 spot on Baidu's site for
RM89,000 in March, but after the site lowered its payment in
July, its visits fell from over 88,000 hits to 18,340 hits in just a
month.
Baidu claims its "search results are not influenced
by its bid ranking service".
Many smaller lawsuits in China tend to be tit-for-tats between
competitors.
for medical information site www.qmyyw.com.
Qmyyw.com's suit claims that Baidu search results now
exclude Qmyyw.com's content following the company's reduction
in its payment for Baidu's bid ranking service. Citing reports from
the Southern Metropolis Weekly, the rumor points out that
Qmyyw.com purchased a number 3 spot on Baidu's site for
RM89,000 in March, but after the site lowered its payment in
July, its visits fell from over 88,000 hits to 18,340 hits in just a
month.
Baidu claims its "search results are not influenced
by its bid ranking service".
Many smaller lawsuits in China tend to be tit-for-tats between
competitors.
Wednesday, November 5, 2008
B2B platform to be free
Baidu's (Nasdaq: BIDU) rumored business-to-business
e-commerce platform is expected to offer free services,
reports Beijing Business Today quoting an unnamed insider.
The company is calling the platform "Shang Dao" or
"The Way to Do Business," said the insider. Previous
reports said Baidu had appointed former Tootoo.com,
Ninetowns' B2B subsidiary, COO Hu Xinran as enterprise
marketing department manager and commenced initial
work on a platform similar to Alibaba.com (1688.HK).
e-commerce platform is expected to offer free services,
reports Beijing Business Today quoting an unnamed insider.
The company is calling the platform "Shang Dao" or
"The Way to Do Business," said the insider. Previous
reports said Baidu had appointed former Tootoo.com,
Ninetowns' B2B subsidiary, COO Hu Xinran as enterprise
marketing department manager and commenced initial
work on a platform similar to Alibaba.com (1688.HK).
Tuesday, November 4, 2008
Baidu joins wireless city projects
Baidu announced yesterday the company has finished
construction of the Shanghai Jiading Wireless City
Internet portal, and will officially launch the site
shortly. This portal will provide Wireless City users
with search, community, and e-government applications
and services.
Similar projects are currently underway in Shenzhen,
Beijing, Dongguan, and Changde, and plans call for
similar projects to spread to 25 large and mid-sized
cities in China by the end of 2008. Baidu will participate
in the development and promotion of applications and
services for all of these Wireless City networks.
construction of the Shanghai Jiading Wireless City
Internet portal, and will officially launch the site
shortly. This portal will provide Wireless City users
with search, community, and e-government applications
and services.
Similar projects are currently underway in Shenzhen,
Beijing, Dongguan, and Changde, and plans call for
similar projects to spread to 25 large and mid-sized
cities in China by the end of 2008. Baidu will participate
in the development and promotion of applications and
services for all of these Wireless City networks.
Monday, November 3, 2008
B2B plans
Baidu has appointed former Ninetowns' (Nasdaq: NINE)
business-to-business (B2B) e-commerce subsidiary
Tootoo.com COO Hu Xinran as enterprise marketing
department manager, reports Sohu citing Baidu and
Tootoo sources. Hu left his role as chief operating
officer in July, said a Tootoo.com executive.
Baidu plans to release a B2B platform similar to that
of Alibaba.com Ltd (1688.HK) and, according to an
unnamed source, has contacted certification
companies about creating a seller identity verification
system, reports Beijing Business Today. The search
giant has also commissioned third-party companies
to conduct face-to-face surveys with clients of
Alibaba.com's paid Gold Supplier B2B service, said
a Pearl River Delta distributor for Baidu's bid
ranking service. Baidu launched the open beta version
of its consumer-to-consumer e-commerce platform
Youa.com on October 28.
business-to-business (B2B) e-commerce subsidiary
Tootoo.com COO Hu Xinran as enterprise marketing
department manager, reports Sohu citing Baidu and
Tootoo sources. Hu left his role as chief operating
officer in July, said a Tootoo.com executive.
Baidu plans to release a B2B platform similar to that
of Alibaba.com Ltd (1688.HK) and, according to an
unnamed source, has contacted certification
companies about creating a seller identity verification
system, reports Beijing Business Today. The search
giant has also commissioned third-party companies
to conduct face-to-face surveys with clients of
Alibaba.com's paid Gold Supplier B2B service, said
a Pearl River Delta distributor for Baidu's bid
ranking service. Baidu launched the open beta version
of its consumer-to-consumer e-commerce platform
Youa.com on October 28.
Share buyback plan for $200 million
by end 2009. At the current market cap, that
reduces P/E by about 3%.
reduces P/E by about 3%.
Thursday, October 30, 2008
E-commerce site details
Baidu's ecommerce website youa.baidu.com recorded more
than four million pageviews, while 1.99 million items of goods
went on sale on it on Tuesday, when the
consumer-to-consumer (C2C) website was launched, the
company said on Thursday. A spokeswoman also said the
aim was to overtake Taobao in 3 years. In contrast, Taobao
had around 200 million daily visitors last year.
than four million pageviews, while 1.99 million items of goods
went on sale on it on Tuesday, when the
consumer-to-consumer (C2C) website was launched, the
company said on Thursday. A spokeswoman also said the
aim was to overtake Taobao in 3 years. In contrast, Taobao
had around 200 million daily visitors last year.
Wednesday, October 29, 2008
Elink alliance
Beijing-based online solutions provider China Business
Elink launched an Internet advertising alliance with
nearly 100 partners including Baidu, Sina, and Tencent,
on October 28, said an Elink employee surnamed Chen.
Alliance members will promote Elink adverting product
Webdou (webdou.com), an interactive tool that offers
prizes to users that click on ads and answer
company-related questions correctly. Twenty-five percent
of Webdou revenue will go to alliance members, while Elink
will take 25% as profit and 50% as prize purchasing capital.
Webdou, currently in invitation-based testing, is scheduled
for official release on January 1, 2009.
Elink launched an Internet advertising alliance with
nearly 100 partners including Baidu, Sina, and Tencent,
on October 28, said an Elink employee surnamed Chen.
Alliance members will promote Elink adverting product
Webdou (webdou.com), an interactive tool that offers
prizes to users that click on ads and answer
company-related questions correctly. Twenty-five percent
of Webdou revenue will go to alliance members, while Elink
will take 25% as profit and 50% as prize purchasing capital.
Webdou, currently in invitation-based testing, is scheduled
for official release on January 1, 2009.
Baidu Hi e-commerce version
Baidu released a customized e-commerce version of its
instant messaging software "Baidu Hi" on October 29,
reports Sohu. The version adds pictures and
information for products on Baidu's e-commerce
platform, "Youa," and allows users to login to the
platform, publish products and manage shops from
the Baidu Hi main window. According to a post in
Sohu's IT Club, a former vice president from
Shanghai-based online payment service provider
99Bill and his team have resigned to join Baidu's
online payment tool "Bai Fu Bao."
Baidu released a web version of Baidu Hi for users of
its blog "Baidu Space" on October 23. Space users can
click on the Baidu Hi logo in another user's blog page
to open a chat window, without downloading Baidu Hi
software.
instant messaging software "Baidu Hi" on October 29,
reports Sohu. The version adds pictures and
information for products on Baidu's e-commerce
platform, "Youa," and allows users to login to the
platform, publish products and manage shops from
the Baidu Hi main window. According to a post in
Sohu's IT Club, a former vice president from
Shanghai-based online payment service provider
99Bill and his team have resigned to join Baidu's
online payment tool "Bai Fu Bao."
Baidu released a web version of Baidu Hi for users of
its blog "Baidu Space" on October 23. Space users can
click on the Baidu Hi logo in another user's blog page
to open a chat window, without downloading Baidu Hi
software.
Alibaba terminates contract
Alibaba's b2b business officially notified Baidu on October 10
of its intention to terminate its advertising contract and
remove Alibaba.com advertisements from Baidu's sponsored
links in the near future, reports qq.com.
Alibaba.com plans to use a "healthy and efficient" platform
for promotions and will not rule out the possibility of
cooperating with search engines including existing partners
Google and Yahoo in the future, said the report quoting an
Alibaba.com employee.
of its intention to terminate its advertising contract and
remove Alibaba.com advertisements from Baidu's sponsored
links in the near future, reports qq.com.
Alibaba.com plans to use a "healthy and efficient" platform
for promotions and will not rule out the possibility of
cooperating with search engines including existing partners
Google and Yahoo in the future, said the report quoting an
Alibaba.com employee.
UN Global Compact
Chinese search engine Baidu (BIDU) officially announced that it
has committed to be a member of the United Nations Global
Compact to boost its daily management on corporate social
responsibility. Liu Meng, the China-based UN Global Compact
network manager, told local media that Baidu is one the first
Chinese Internet companies to join the Global Compact. Now
the Global Compact has more than 180 members in China,
including Sinopec, Petro China, China Mobile and Haier. The
participation of Baidu will work as a model to drive more
Internet companies to bring CSR system construction into
their strategic planning and to promote sustainable
development of the industry. The UN Global Compact is a
strategic policy initiative for businesses that are committed
to aligning their operations and strategies with ten universally
accepted principles in the areas of human rights, labor,
environment and anti-corruption.
By joining the Global Compact, Baidu is committing to the ten
principles in the areas of human rights, labor, the environment
and anti-corruption laid out by the initiative. In the past,
Internet search engines like Google and Baidu have come
under international pressure for amending
and obfuscating their search engine results within China, which
some people overseas believe is immoral and unethical. In
addition, Baidu has come under attack in the past 18 months
for allowing illegal music downloads via its search engine links.
Though the Global Compact does not address intellectual property
rights or freedom of information directly, how Baidu's business
processes will change now that its has committed to such lofty
universal ideals as "respect [for] the protection of internationally
proclaimed human rights" is mostly unclear. The only clue comes
from Robin Li, CEO of Baidu, and what he stated in his
commitment letter to join the organization: "We are committed
to making the Global Compact and its principles part of the
strategy, culture and day-to-day operations of our company,
and to engaging in collaborative projects which advance the
broader development goals of the United Nations, particularly
the Millennium Development Goals. Baidu will make a clear
statement of this commitment to our stakeholders and the
general public."
Getting into the Global Compact does not automatically
afford Baidu an unconditional lifetime membership. Indeed
it is quite possible for the company to be dumped
from the initiative, as in July 2008 the United Nations Global
Compact Office announced that 630 companies, including
22 Chinese companies, have so far been removed from its list
of participants for failure to communicate progress. The
delisting of companies is part of ongoing efforts by the
UNGC Office to enhance the accountability and credibility
of the initiative, so Baidu must now stay vigilant in its dealings
with all of its stakeholders to ensure conformity and
compliance with the Global Compact guidelines.
has committed to be a member of the United Nations Global
Compact to boost its daily management on corporate social
responsibility. Liu Meng, the China-based UN Global Compact
network manager, told local media that Baidu is one the first
Chinese Internet companies to join the Global Compact. Now
the Global Compact has more than 180 members in China,
including Sinopec, Petro China, China Mobile and Haier. The
participation of Baidu will work as a model to drive more
Internet companies to bring CSR system construction into
their strategic planning and to promote sustainable
development of the industry. The UN Global Compact is a
strategic policy initiative for businesses that are committed
to aligning their operations and strategies with ten universally
accepted principles in the areas of human rights, labor,
environment and anti-corruption.
By joining the Global Compact, Baidu is committing to the ten
principles in the areas of human rights, labor, the environment
and anti-corruption laid out by the initiative. In the past,
Internet search engines like Google and Baidu have come
under international pressure for amending
and obfuscating their search engine results within China, which
some people overseas believe is immoral and unethical. In
addition, Baidu has come under attack in the past 18 months
for allowing illegal music downloads via its search engine links.
Though the Global Compact does not address intellectual property
rights or freedom of information directly, how Baidu's business
processes will change now that its has committed to such lofty
universal ideals as "respect [for] the protection of internationally
proclaimed human rights" is mostly unclear. The only clue comes
from Robin Li, CEO of Baidu, and what he stated in his
commitment letter to join the organization: "We are committed
to making the Global Compact and its principles part of the
strategy, culture and day-to-day operations of our company,
and to engaging in collaborative projects which advance the
broader development goals of the United Nations, particularly
the Millennium Development Goals. Baidu will make a clear
statement of this commitment to our stakeholders and the
general public."
Getting into the Global Compact does not automatically
afford Baidu an unconditional lifetime membership. Indeed
it is quite possible for the company to be dumped
from the initiative, as in July 2008 the United Nations Global
Compact Office announced that 630 companies, including
22 Chinese companies, have so far been removed from its list
of participants for failure to communicate progress. The
delisting of companies is part of ongoing efforts by the
UNGC Office to enhance the accountability and credibility
of the initiative, so Baidu must now stay vigilant in its dealings
with all of its stakeholders to ensure conformity and
compliance with the Global Compact guidelines.
Thursday, October 23, 2008
S&P reiterates hold
Baidu.com posts third quarter earnings per American
Depositary Share (ADS) of $1.47 vs. $0.70, well above our
$1.15 estimate. Revenues rose 85%, in line with our forecast.
The company's operating margin was also notably higher than
our projection, reflecting scale in the business. Baidu indicated
its businesses have not been materially impacted by the global
financial crises, but noted that certain export customers have
been adversely affected. We are raising our per-ADS profit
estimates for 2008 to $4.62 from $4.23 and 2009 to $6.79 from
$6.46, and setting an 2010 projection of $9.93. Our 12-month
target price remains $300. /S. Kessler
Depositary Share (ADS) of $1.47 vs. $0.70, well above our
$1.15 estimate. Revenues rose 85%, in line with our forecast.
The company's operating margin was also notably higher than
our projection, reflecting scale in the business. Baidu indicated
its businesses have not been materially impacted by the global
financial crises, but noted that certain export customers have
been adversely affected. We are raising our per-ADS profit
estimates for 2008 to $4.62 from $4.23 and 2009 to $6.79 from
$6.46, and setting an 2010 projection of $9.93. Our 12-month
target price remains $300. /S. Kessler
Canaccord Adams maintains sell rating
Price target lowered from $265 to $190.
Canaccord analyst says, "We respect Baidu’s position
as a search leader in one of the most important global
markets, but concern that a slowing global macro may
spill into domestic activity in China – coupled with the
potential for downward estimate revisions for upcoming
historically weak MarchQ – causes us to lower our price
target. BIDU continues to trade at a premium valuation
to the group and while efforts to control costs to drive
EPS were effective in the SepQ, we expect that growth
investors may have concern on several slowing metrics."
Canaccord analyst says, "We respect Baidu’s position
as a search leader in one of the most important global
markets, but concern that a slowing global macro may
spill into domestic activity in China – coupled with the
potential for downward estimate revisions for upcoming
historically weak MarchQ – causes us to lower our price
target. BIDU continues to trade at a premium valuation
to the group and while efforts to control costs to drive
EPS were effective in the SepQ, we expect that growth
investors may have concern on several slowing metrics."
Citi positive
Citi Investment Research analyst Jason Brueschke
expects a strong finish to the year for the Beijing-based
company. He rates the stock "Buy." "Baidu (revenues) are
wholly domestic and derived from an extremely broad
customer base, offering investors a highly diversified and
hence less risky (revenue) stream," he wrote in a note to
investors.That said, he added Baidu is a pure advertising
company, and its revenue is correlated with the health of
the underlying Chinese economy -- which is slowing.
expects a strong finish to the year for the Beijing-based
company. He rates the stock "Buy." "Baidu (revenues) are
wholly domestic and derived from an extremely broad
customer base, offering investors a highly diversified and
hence less risky (revenue) stream," he wrote in a note to
investors.That said, he added Baidu is a pure advertising
company, and its revenue is correlated with the health of
the underlying Chinese economy -- which is slowing.
Web version of Baidu IM launched
The launched product is the Web version of Baidu’s instant
messenger. Baidu’s IM, launched in March this year, shares
the same name with Baidu space and tightly integrated with it.
messenger. Baidu’s IM, launched in March this year, shares
the same name with Baidu space and tightly integrated with it.
The web version is quite simple. It doesn’t show you a buddy
list. Instead the user's name has to be entered manually, after
clicking a button the upper left side of the screen to start
the chat.
Radio channel alliances
Baidu's radio alliance has partnered with more than 100 radio
stations in nearly 30 provinces and cities, including 13 state-run
stations, since its release in late March, reports Hexun. Baidu
updated its radio channel on October 22 to add program
recommendations and interactive online functions, said the
report.
Baidu partnered with 15 domestic radio stations including
China Radio International (CRI) to launch its radio alliance and r
adio programming site (list.mp3.baidu.com/radio/index.html).
stations in nearly 30 provinces and cities, including 13 state-run
stations, since its release in late March, reports Hexun. Baidu
updated its radio channel on October 22 to add program
recommendations and interactive online functions, said the
report.
Baidu partnered with 15 domestic radio stations including
China Radio International (CRI) to launch its radio alliance and r
adio programming site (list.mp3.baidu.com/radio/index.html).
Susquehanna maintains Positive rating
Susquehanna maintains a Positive rating Price target increases
from $305 to $320.
Susquehanna analyst says, "Yesterday, Baidu reported an
almost flawless quarter...We expect 4Q EPS to benefit from
continued top-line growth, solid margin, as well as a one-time
gain from outsourcing its video channel...Management
demonstrated strong confidence in Baidu's growth potential,
but did not comment on potential impact from macro slowdown
in China in 2009. We believe investors should react to the
earnings results in a constructive manner, as the stock is
trading at 25% lower than its price post 2Q results, and
the company has met growth targets in 3Q and 4Q."
from $305 to $320.
Susquehanna analyst says, "Yesterday, Baidu reported an
almost flawless quarter...We expect 4Q EPS to benefit from
continued top-line growth, solid margin, as well as a one-time
gain from outsourcing its video channel...Management
demonstrated strong confidence in Baidu's growth potential,
but did not comment on potential impact from macro slowdown
in China in 2009. We believe investors should react to the
earnings results in a constructive manner, as the stock is
trading at 25% lower than its price post 2Q results, and
the company has met growth targets in 3Q and 4Q."
iResearch: Baidu search share at 73.2%
Affected by the Beijing Olympics, webpage search requests of
Baidu.com, the biggest Chinese Internet search service provider
in the world, took a nose dive in this August but reversed the
trend by increasing 30% in September, according to the
latest report from IT market research firm iResearch.
Total webpage search requests in China hit 37.19 billion times
in the third quarter of 2008. Baidu retained the top spot by
taking up 73.2% of the market. Google came second with a
market share of 20.8%.
Industry analysts point out that the dominance of Baidu
in China can hardly be shaken and its market share may
be higher than statistics of iResearch.
The survey conducted by iResearch focuses on household
and corporate users and doesn't include search traffic generated
by users in Internet cafes.
Latest numbers indicate that about one third of Chinese Internet
users are getting access to the Web from Internet cafes.
Baidu.com, the biggest Chinese Internet search service provider
in the world, took a nose dive in this August but reversed the
trend by increasing 30% in September, according to the
latest report from IT market research firm iResearch.
Total webpage search requests in China hit 37.19 billion times
in the third quarter of 2008. Baidu retained the top spot by
taking up 73.2% of the market. Google came second with a
market share of 20.8%.
Industry analysts point out that the dominance of Baidu
in China can hardly be shaken and its market share may
be higher than statistics of iResearch.
The survey conducted by iResearch focuses on household
and corporate users and doesn't include search traffic generated
by users in Internet cafes.
Latest numbers indicate that about one third of Chinese Internet
users are getting access to the Web from Internet cafes.
RBC positive on results
RBC notes that BIDU reported 3Q08 with in-line rev
and EPS beat. Pro forma op margin rose to 44.7% as
the co right-sized some of its TAC payouts and realized
cost efficiencies. Despite mgmt's comments to the
contrary, they do believe the global slowdown is impacting
top line growth. And as was the case with GOOG, search
may be more resilient to a downturn, but it is not immune.
Firm did not note anything that would impair their investment
thesis, and Baidu is displaying the inherent leverage in its
business model. Firm raises tgt to $387 from $384.
and EPS beat. Pro forma op margin rose to 44.7% as
the co right-sized some of its TAC payouts and realized
cost efficiencies. Despite mgmt's comments to the
contrary, they do believe the global slowdown is impacting
top line growth. And as was the case with GOOG, search
may be more resilient to a downturn, but it is not immune.
Firm did not note anything that would impair their investment
thesis, and Baidu is displaying the inherent leverage in its
business model. Firm raises tgt to $387 from $384.
Wednesday, October 22, 2008
Yanhong Li denies LG has stopped advertising on mp3.baidu.com
Categorically states the report that LG was heeding
the music consortium's boycott call of Baidu, was
incorrect.
The original report.
the music consortium's boycott call of Baidu, was
incorrect.
Analysys: Baidu's revenue share down a bit
In the three months ended Sept. 30, Baidu had 63.4% of
China's search-engine market by revenue, down from 64.4%
in the second quarter, Beijing-based Analysys said in a
report.
At the same time, Google's share of China's search-engine
market rose to 27.8% from 26.1% in the second quarter.
Competition in China's search-engine market has been
rising, Analysys said, with Chinese company Baidu
adjusting its multi-development strategy and Google
implementing its localization strategy in the third
quarter.
In the third quarter, total search-engine revenue in
China rose 78% from a year earlier to CNY1.46 billion,
slowing from 87% growth in the second quarter, as
per Analysys.
Advertising spending fell because some companies halted
operations during the Beijing Olympics in August, while
small- and medium-sized enterprises lowered their
advertising budgets due to the global economic turmoil,
the report said.
Distant third-place contender Yahoo China continued to
lose ground, with its market share falling to 4.7% in
the third quarter from 5.5% in the second quarter.
China's search-engine market by revenue, down from 64.4%
in the second quarter, Beijing-based Analysys said in a
report.
At the same time, Google's share of China's search-engine
market rose to 27.8% from 26.1% in the second quarter.
Competition in China's search-engine market has been
rising, Analysys said, with Chinese company Baidu
adjusting its multi-development strategy and Google
implementing its localization strategy in the third
quarter.
In the third quarter, total search-engine revenue in
China rose 78% from a year earlier to CNY1.46 billion,
slowing from 87% growth in the second quarter, as
per Analysys.
Advertising spending fell because some companies halted
operations during the Beijing Olympics in August, while
small- and medium-sized enterprises lowered their
advertising budgets due to the global economic turmoil,
the report said.
Distant third-place contender Yahoo China continued to
lose ground, with its market share falling to 4.7% in
the third quarter from 5.5% in the second quarter.
Monday, October 20, 2008
Closed Beta version of e-commerce platform released
Baidu released the closed beta version of its e-commerce
platform with over 1 million products from
10,000 pre-approved sellers at youa.com on October 18,
reports Chinabyte. Sellers who upload more than 100
products before the platform's official launch will
receive a preferred seller designation, said the report.
An additional 50,000 users from other Baidu communities
will be allowed to make purchases on youa.com during closed
beta, and their account histories will not be deleted after
testing, said the report.
platform with over 1 million products from
10,000 pre-approved sellers at youa.com on October 18,
reports Chinabyte. Sellers who upload more than 100
products before the platform's official launch will
receive a preferred seller designation, said the report.
An additional 50,000 users from other Baidu communities
will be allowed to make purchases on youa.com during closed
beta, and their account histories will not be deleted after
testing, said the report.
Susquehanna cuts price target to $305
Susquehanna: "We have become cautiously optimistic
from optimistic on the Chinese online ad industry,
when factoring in a significant slowdown in the
Chinese macro economy. We have not turned bearish
yet, because online ad remains as a market
share-gaining story. In five years, online ad will
likely grow to 15% of total ad spending in China
from 6.5% in CY08, and search will account for ~70%
of total online ad from 43%. We believe Baidu will
benefit from businesses being more capable of doing
business online, and its C2C initiative should bring
forth five monetization opportunities. That being
said, Baidu faces challenges from competitor
Google. Taking these factors into consideration,
we are lowering our forecasts for CY09, maintaining
a Positive rating, but cutting our price target to
$305 from $440."
from optimistic on the Chinese online ad industry,
when factoring in a significant slowdown in the
Chinese macro economy. We have not turned bearish
yet, because online ad remains as a market
share-gaining story. In five years, online ad will
likely grow to 15% of total ad spending in China
from 6.5% in CY08, and search will account for ~70%
of total online ad from 43%. We believe Baidu will
benefit from businesses being more capable of doing
business online, and its C2C initiative should bring
forth five monetization opportunities. That being
said, Baidu faces challenges from competitor
Google. Taking these factors into consideration,
we are lowering our forecasts for CY09, maintaining
a Positive rating, but cutting our price target to
$305 from $440."
Streaming music channel
Baidu introduced a new channel yesterday, entitled
"New Song Debut" as part of its continued attempts
at working out cooperation models with record
companies. Baidu is working with the Emperor
Entertainment Group, Music Nation, Rock Records &
Tapes, Ocean Butterflies International, Huayi
Brothers, B in Music, and EMI to release 9 albums
from 9 artists including JJ Lin and Xu Wei. The
new channel offers only streaming functionality
and no downloading.
"New Song Debut" as part of its continued attempts
at working out cooperation models with record
companies. Baidu is working with the Emperor
Entertainment Group, Music Nation, Rock Records &
Tapes, Ocean Butterflies International, Huayi
Brothers, B in Music, and EMI to release 9 albums
from 9 artists including JJ Lin and Xu Wei. The
new channel offers only streaming functionality
and no downloading.
Bullish call by JP Morgan
Expect good Q3 numbers: around top-end of its guidance
range. We believe Baidu executed well during 3Q08, despite
negative impacts from the Olympics and macro issues. We
expect Baidu to report numbers around top-end of its
guidance range (US$132M-US$136M) vs. consensus
forecast of US$133.6M.
Margins should be inline with historical range.
TAC (traffic acquisition cost) should be back to 13-14%
level in 3Q08, up from the surprising low 12.7% in 2Q08.
We maintain our diluted EPS forecast of US$1.25.
4Q08 outlook continues to be strong. We expect company
should be able to deliver ~15% sequential revenue growth
(or ~87% YoY) to ~US$155M in 4Q08, vs. consensus of
US$151.6M. We expect strong internet usage growth and
increasing ad budget allocation to online media should
benefit Baidu and other online ad companies.
To set a good opening for internet sector. Baidu is the
first Chinese Internet company to report 3Q08 results.
We believe the good results and guidance should set a
positive tone for other China internet companies.
Besides Baidu, we also like Sina and Sohu at this
level.
Maintain Dec-08 PT of US$380, which implies
90.6x 2008E, 56.2x 2009E, and 36.9x 2010E
diluted GAAP P/E (or 83.5x 2008E, 53.6x 2009E,
and 35.8x 2010E diluted adjusted P/E). We
would advise investors to accumulate
the stock ahead of results.
Near-term share price drivers are: (1) potential upside
from conservative Q3 guidance, (2) margins improvements
in 2009 on better leverage from brand advertising, and
(3) earnings upside from new eCommerce business.
Friday, October 17, 2008
Cooperation with Cisco
Baidu announced on Thursday that it has deepened its strategic
cooperation with Cisco, and the alliance has realized the
research and development, deployment and testing of an imitated
Internet platform scheme.
A research group coestablished by the two parties has completed
the ultimate bearing capacity test of "next generation" Internet
platforms. In addition, it will study such popular technology
programs as netizen experience and IPv6.
According to Baidu, the cooperation combines superior resources
from both parties, including labor, equipment and capital.
The two parties are expected to prepare for the arrival of
"next generation" Internet and search engines by establishing
co- labs, setting up program R&D teams, as well as interacting
on technology issues.
Analysts believe Baidu aims to push forward Internet technology
standardization for the approaching new Internet era, as its
current R&D activities have covered a whole industrial chain,
ranging from core network facilities, connection, end-devices
to testing instruments.
Besides the cooperation with Cisco in the fields of IPv6 and
100G Internet bearing capacity research, Baidu is also working
with such companies as Huawei Technologies and H3C in Ethernet
and mobile Internet technology, and with Intel and Nankai
University, in high-performance computer and solid state disk
technologies respectively.
cooperation with Cisco, and the alliance has realized the
research and development, deployment and testing of an imitated
Internet platform scheme.
A research group coestablished by the two parties has completed
the ultimate bearing capacity test of "next generation" Internet
platforms. In addition, it will study such popular technology
programs as netizen experience and IPv6.
According to Baidu, the cooperation combines superior resources
from both parties, including labor, equipment and capital.
The two parties are expected to prepare for the arrival of
"next generation" Internet and search engines by establishing
co- labs, setting up program R&D teams, as well as interacting
on technology issues.
Analysts believe Baidu aims to push forward Internet technology
standardization for the approaching new Internet era, as its
current R&D activities have covered a whole industrial chain,
ranging from core network facilities, connection, end-devices
to testing instruments.
Besides the cooperation with Cisco in the fields of IPv6 and
100G Internet bearing capacity research, Baidu is also working
with such companies as Huawei Technologies and H3C in Ethernet
and mobile Internet technology, and with Intel and Nankai
University, in high-performance computer and solid state disk
technologies respectively.
Friday, October 10, 2008
172 million online vistors weekly
Nielsen Online is teaming up with the operator of
ChinaRank to offer traffic insight into China's
fast-growing Internet market. Now that China has
more than 250 million people online, gauging the
country's Web pulse is critical.
Baidu 171 million
Tencent 117 million
SINA 108 million
Google 81 million
Sohu 74 million
NetEase 58 million
Source: CR-Nielsen.
ChinaRank to offer traffic insight into China's
fast-growing Internet market. Now that China has
more than 250 million people online, gauging the
country's Web pulse is critical.
Baidu 171 million
Tencent 117 million
SINA 108 million
Google 81 million
Sohu 74 million
NetEase 58 million
Source: CR-Nielsen.
Chief Scientist may resign
Baidu chief scientist Dr. William I. Chang is planning
to resign in protest of the company's new chief technology
officer, reports baiduer.com.cn citing inside sources.
Robin Li, Baidu's CEO, asked Chang to take over more
technology and human resources duties while taking in
Yinan Li, the new CTO, but Chang refused in order to focus
on his current technology research, said the report. Chang
will be succeeded by Hong Tao, said the report. Chang
joined Baidu in January, 2007 after serving as chief
technology officer at Infoseek.
to resign in protest of the company's new chief technology
officer, reports baiduer.com.cn citing inside sources.
Robin Li, Baidu's CEO, asked Chang to take over more
technology and human resources duties while taking in
Yinan Li, the new CTO, but Chang refused in order to focus
on his current technology research, said the report. Chang
will be succeeded by Hong Tao, said the report. Chang
joined Baidu in January, 2007 after serving as chief
technology officer at Infoseek.
Thursday, October 9, 2008
Online C2C platform named "youa"
Literally meaning "got it" in Chinese. Baidu has
adopted an independent domain name "youa.com".
Li Mingyuan, an official from Baidu's e-commerce
department, said that "youa", easy to remember
for the Chinese, accords with the spelling rules
of the language.
adopted an independent domain name "youa.com".
Li Mingyuan, an official from Baidu's e-commerce
department, said that "youa", easy to remember
for the Chinese, accords with the spelling rules
of the language.
Sunday, October 5, 2008
Yinan Li appointed CTO
"We are pleased to welcome Yinan to our senior
management team," said Robin Li, Baidu's chief
executive officer. "Yinan has a strong track
record of developing and applying technologies
that succeed in the marketplace. As Baidu's
chief technology officer, Yinan will draw on
his expertise to lead our technology teams,
helping us to excel in the development and
adoption of new products and technologies.
Yinan's rich experience, both in start-up
companies and in corporate executive positions,
gives me confidence in his ability to lead
technology innovation and integration at Baidu."
An experienced research and development leader,
Li has more than 16 years of experience in the
information technology industry. Prior to
joining Baidu, Li served as chief
telecommunications scientist and vice president
at Huawei Technologies, a telecom solutions
provider. In that position, he oversaw the
development of 3G mobile chipsets. Li joined
Huawei from Harbour Networks, a developer of
intelligent security systems, where he served
as chief executive officer. His work at Harbour
Networks was preceded by various positions at
Huawei Technologies, including product manager,
director of research and development and president
of research and development where he led a staff
of over 5,000.
Li holds a master's and a bachelor's degree in
optical engineering from Huazhong University of
Science and Technology in Wuhan, China.
management team," said Robin Li, Baidu's chief
executive officer. "Yinan has a strong track
record of developing and applying technologies
that succeed in the marketplace. As Baidu's
chief technology officer, Yinan will draw on
his expertise to lead our technology teams,
helping us to excel in the development and
adoption of new products and technologies.
Yinan's rich experience, both in start-up
companies and in corporate executive positions,
gives me confidence in his ability to lead
technology innovation and integration at Baidu."
An experienced research and development leader,
Li has more than 16 years of experience in the
information technology industry. Prior to
joining Baidu, Li served as chief
telecommunications scientist and vice president
at Huawei Technologies, a telecom solutions
provider. In that position, he oversaw the
development of 3G mobile chipsets. Li joined
Huawei from Harbour Networks, a developer of
intelligent security systems, where he served
as chief executive officer. His work at Harbour
Networks was preceded by various positions at
Huawei Technologies, including product manager,
director of research and development and president
of research and development where he led a staff
of over 5,000.
Li holds a master's and a bachelor's degree in
optical engineering from Huazhong University of
Science and Technology in Wuhan, China.
Tuesday, September 30, 2008
LG electronics to stop advertising on Baidu's MP3 channel
Until the lawsuit is resolved, LG won't advertise on
mp3.baidu.com. The move seemingly is in response to
a boycott call by the music groups who are the
plaintiffs. Other major customers advertising on the
channel are Huiyuan Juice, Philips, Tencent and Kingsoft.
mp3.baidu.com. The move seemingly is in response to
a boycott call by the music groups who are the
plaintiffs. Other major customers advertising on the
channel are Huiyuan Juice, Philips, Tencent and Kingsoft.
Teaming up with Japanese mobile provider
Japanese mobile provider Willcom Inc. said Tuesday
it will provide information services for Chinese
visitors to Japan in cooperation with Baidu, China's
largest search engine.
As a first step, the Japanese personal handy-phone
system operator will start leasing its handsets to
Chinese tourists and business travelers by the end
of this year. The two companies will also cooperate
in launching Chinese-language call center operations.
The number of Chinese visitors to Japan reached an
all-time high of 943,400 last year, but there is
only a limited amount of information available for
Chinese people visiting Japan, they said.
In the future, the two companies plan to provide
shopping and restaurant information in Chinese via
Willcom's handsets.
A Baidu official said it is considering distributing
Chinese-language content on the PHS network if
relations with its Japanese partner further strengthen.
With the partnership, Baidu aims to expand its
operations in Japan, while Willcom hopes to popularize
its PHS mobile network system in other Asian countries,
including China.
it will provide information services for Chinese
visitors to Japan in cooperation with Baidu, China's
largest search engine.
As a first step, the Japanese personal handy-phone
system operator will start leasing its handsets to
Chinese tourists and business travelers by the end
of this year. The two companies will also cooperate
in launching Chinese-language call center operations.
The number of Chinese visitors to Japan reached an
all-time high of 943,400 last year, but there is
only a limited amount of information available for
Chinese people visiting Japan, they said.
In the future, the two companies plan to provide
shopping and restaurant information in Chinese via
Willcom's handsets.
A Baidu official said it is considering distributing
Chinese-language content on the PHS network if
relations with its Japanese partner further strengthen.
With the partnership, Baidu aims to expand its
operations in Japan, while Willcom hopes to popularize
its PHS mobile network system in other Asian countries,
including China.
Monday, September 29, 2008
C2C platform launching at the end of the year
Li Mingyuan, general manager of the e-commerce
department of Baidu.com, said on September 25
that the company was through its last stop of
the roadshow of attracting businesses for its
C2C platform in Shanghai. And Baidu will
officially put the C2C platform into operation
at the end of this year.
Baidu has been luring businesses in big cities
like Beijing, Ningbo, Guangzhou, Nanjing, and
Shanghai. And it has reached thousands
of local sellers in these cities.
Spokesperson for Baidu.com said that Baidu hoped
its C2C platform can gather more big sellers.
This round it is expected to enlist Taobao sellers
with three diamonds and above.
Baidu says that it does not hope to undermine
the foundation of Taobao.com, the biggest C2C
website in China, it just wants more Taobao
sellers to set up online stores on its platform
at the same time. And in the future, it will
enlist more online sellers.
department of Baidu.com, said on September 25
that the company was through its last stop of
the roadshow of attracting businesses for its
C2C platform in Shanghai. And Baidu will
officially put the C2C platform into operation
at the end of this year.
Baidu has been luring businesses in big cities
like Beijing, Ningbo, Guangzhou, Nanjing, and
Shanghai. And it has reached thousands
of local sellers in these cities.
Spokesperson for Baidu.com said that Baidu hoped
its C2C platform can gather more big sellers.
This round it is expected to enlist Taobao sellers
with three diamonds and above.
Baidu says that it does not hope to undermine
the foundation of Taobao.com, the biggest C2C
website in China, it just wants more Taobao
sellers to set up online stores on its platform
at the same time. And in the future, it will
enlist more online sellers.
Tie up with UiTV
China's largest Internet Television platform.
Baidu will contribute assets related to the
operation of Baidu Internet TV Channel to UiTV
in exchange for an 8.3% stake in UiTV and
US$15 million. Following this transaction,
Baidu Internet TV Channel will continue to be
hosted on movie.baidu.com and it will be operated
by UiTV. This channel is not related to
video.baidu.com, Baidu's video search business.
Baidu Internet TV Channel is a website where
Internet users can download movies and TV programs.
Through cooperation with the majority of China's
online movie and TV service and content providers,
including TVB, Enlight Media and many others, Baidu
Internet TV Channel has China's largest database for
authorized copy-righted movie and TV program downloads.
Baidu Internet TV Channel operates an advertising-based
revenue sharing model that allows users to download
copy-righted video content for free. Baidu's independent
director, James Ding, is the chairman of UiTV and owns a
minority interest in that company.
Xuyang Ren, Baidu's vice president of marketing and
business development said, "This transaction will
help UiTV become even more competitive in the Internet
television market thanks to the expanded exposure and
influence of this collaborative platform. It also
offers Baidu the opportunity to benefit from UiTV's
vast future growth potential." Mr. Ren continued,
"Together we can leverage our respective strengths
to provide a better online movie and television
experience for Chinese Internet users."
Song Lin, president and chief executive officer of
UiTV, added, "Our cooperation with Baidu will establish
a strategic relationship that allows both parties to
capitalize on UiTV's strong technical and operational
capabilities. We endeavor to provide the best quality
experience to Baidu's Internet TV Channel users and
expect the new partnership will create a more effective
online advertising platform for our online marketing
customers."
Baidu will contribute assets related to the
operation of Baidu Internet TV Channel to UiTV
in exchange for an 8.3% stake in UiTV and
US$15 million. Following this transaction,
Baidu Internet TV Channel will continue to be
hosted on movie.baidu.com and it will be operated
by UiTV. This channel is not related to
video.baidu.com, Baidu's video search business.
Baidu Internet TV Channel is a website where
Internet users can download movies and TV programs.
Through cooperation with the majority of China's
online movie and TV service and content providers,
including TVB, Enlight Media and many others, Baidu
Internet TV Channel has China's largest database for
authorized copy-righted movie and TV program downloads.
Baidu Internet TV Channel operates an advertising-based
revenue sharing model that allows users to download
copy-righted video content for free. Baidu's independent
director, James Ding, is the chairman of UiTV and owns a
minority interest in that company.
Xuyang Ren, Baidu's vice president of marketing and
business development said, "This transaction will
help UiTV become even more competitive in the Internet
television market thanks to the expanded exposure and
influence of this collaborative platform. It also
offers Baidu the opportunity to benefit from UiTV's
vast future growth potential." Mr. Ren continued,
"Together we can leverage our respective strengths
to provide a better online movie and television
experience for Chinese Internet users."
Song Lin, president and chief executive officer of
UiTV, added, "Our cooperation with Baidu will establish
a strategic relationship that allows both parties to
capitalize on UiTV's strong technical and operational
capabilities. We endeavor to provide the best quality
experience to Baidu's Internet TV Channel users and
expect the new partnership will create a more effective
online advertising platform for our online marketing
customers."
Thursday, September 25, 2008
Baidu Mall opening soon
Baidu will open its e-commerce platform (mall.baidu.com)
to pre-approved sellers at 8 p.m. on September 25, reports
Sohu. Baidu's 10,000 sellers will be able to access the
platform to activate online payment tool "Bai Fu Bao,"
complete real-name account information and set up their
stores. A post on Sohu's IT community said the platform
will offer free services similar to Taobao's paid product
"Wang Pu," and that Baidu has already signed logistics
partners and may rank products by popularity.
Baidu had more than 40,000 applicants for its online
trading platform by September 11.
to pre-approved sellers at 8 p.m. on September 25, reports
Sohu. Baidu's 10,000 sellers will be able to access the
platform to activate online payment tool "Bai Fu Bao,"
complete real-name account information and set up their
stores. A post on Sohu's IT community said the platform
will offer free services similar to Taobao's paid product
"Wang Pu," and that Baidu has already signed logistics
partners and may rank products by popularity.
Baidu had more than 40,000 applicants for its online
trading platform by September 11.
Thursday, September 18, 2008
MP3 deep-linking criticized
The report below implies Baidu is directly hosting music on its
proxy hosts, as Zhangsou used to do. But there is no proof -
pirates changing website names in response to takedown notices
is quite common.
The register report
proxy hosts, as Zhangsou used to do. But there is no proof -
pirates changing website names in response to takedown notices
is quite common.
The register report
Joint lab with Nankai University
Baidu and Nankai University in Tianjin unveiled
the "Baidu – Nankai University Parallel and
Distributed Software Labs" at Nankai University
yesterday. Both parties will cooperate on
development for parallel and distributed algorithms,
administration of vast data sets, and in other fields.
The joint laboratory will make use of Nankai's
experience and superiority in parallel and distributed
computing and applications, intelligent computing,
mass data storage systems and other technological and
computing fields, as well as Baidu's experience in the
technologies and their market applications, R&D for
online storage, search, administration and applications
based on self-owned R&D, and on technology-to-product
marketization.
the "Baidu – Nankai University Parallel and
Distributed Software Labs" at Nankai University
yesterday. Both parties will cooperate on
development for parallel and distributed algorithms,
administration of vast data sets, and in other fields.
The joint laboratory will make use of Nankai's
experience and superiority in parallel and distributed
computing and applications, intelligent computing,
mass data storage systems and other technological and
computing fields, as well as Baidu's experience in the
technologies and their market applications, R&D for
online storage, search, administration and applications
based on self-owned R&D, and on technology-to-product
marketization.
Baidu threatens to sue Alibaba over false news
Alibaba Group published postings on September 14
with misleading titles about Baidu's "PR protection
agreement" with food product manufacturer Sanlu on
the websites of Taobao and Alibaba, reports Sohu.
The reports said Sanlu milk powder planned to sign
a RMB 3 million advertising agreement with Baidu
if Baidu would remove Sanlu's negative search results.
Baidu said it retains the right to sue Alibaba Group
for defamation, the report said. Baidu also announced
on its online forum channel Baidu Post Bar on
September 13 that it refused to sign Sanlu's proposed
PR protection agreement.
Alibaba Group welcomed the Baidu lawsuit and said that
revealing truth to the public is its responsibility,
reports Sina. Alibaba deleted the reports on Tuesday
night from the Taobao.com and Alibaba.com Ltd. homepages,
reports ChinaByte.
with misleading titles about Baidu's "PR protection
agreement" with food product manufacturer Sanlu on
the websites of Taobao and Alibaba, reports Sohu.
The reports said Sanlu milk powder planned to sign
a RMB 3 million advertising agreement with Baidu
if Baidu would remove Sanlu's negative search results.
Baidu said it retains the right to sue Alibaba Group
for defamation, the report said. Baidu also announced
on its online forum channel Baidu Post Bar on
September 13 that it refused to sign Sanlu's proposed
PR protection agreement.
Alibaba Group welcomed the Baidu lawsuit and said that
revealing truth to the public is its responsibility,
reports Sina. Alibaba deleted the reports on Tuesday
night from the Taobao.com and Alibaba.com Ltd. homepages,
reports ChinaByte.
Wednesday, September 17, 2008
Baidu's search user market share increases
Baidu.com leads China's search engine market in
2008 with its market share hitting 65. 8 percent,
according to a survey conducted by China
IntelliConsulting Corporation (CIC).
Google ranked second at 22 percent, and
Sogou, at 2.9 percent, exceeded Yahoo!
to take the third place.
The following is a table showing the
detailed market share of Google and Baidu
in different parts of China.
Beijing, Shanghai, Guangzhou: 27% 60.9%
Coastal Cities: 21.3% 67.9%
Dalian Tianjin Qingdao Nanjing Hangzhou
Xiamen Shenzhen
Provincial Capitals 16.1% 72.2% in Middle
China: Changsha Wuhan Zhengzhou Shijiazhuang
Major Cities in West 16.1% 68.3%
Chengdu Chongqing Xi'an
In Beijing and Shanghai, Baidu's market share
dropped by 2.5 and 1. 2 percentage points,
respectively, while in Guangzhou, it increased by
2.2 percentage points.
On the contrary, Google's market share went up 2.7
and 0.6 percentage points, respectively, in Beijing
and Shanghai, and declined 5.3 percentage points
in Guangzhou.
2008 with its market share hitting 65. 8 percent,
according to a survey conducted by China
IntelliConsulting Corporation (CIC).
Google ranked second at 22 percent, and
Sogou, at 2.9 percent, exceeded Yahoo!
to take the third place.
The following is a table showing the
detailed market share of Google and Baidu
in different parts of China.
Beijing, Shanghai, Guangzhou: 27% 60.9%
Coastal Cities: 21.3% 67.9%
Dalian Tianjin Qingdao Nanjing Hangzhou
Xiamen Shenzhen
Provincial Capitals 16.1% 72.2% in Middle
China: Changsha Wuhan Zhengzhou Shijiazhuang
Major Cities in West 16.1% 68.3%
Chengdu Chongqing Xi'an
In Beijing and Shanghai, Baidu's market share
dropped by 2.5 and 1. 2 percentage points,
respectively, while in Guangzhou, it increased by
2.2 percentage points.
On the contrary, Google's market share went up 2.7
and 0.6 percentage points, respectively, in Beijing
and Shanghai, and declined 5.3 percentage points
in Guangzhou.
Tuesday, September 16, 2008
Recruitment test question paper leaked
A user of the virtual community site Tianya Club
(tianya.cn) claimed in a September 14 posting that
he had spent half of his monthly living expenses
to purchase the content of Baidu's paper
recruitment test, to be held on Wednesday.
The user, registered as "wangwj1985", posted a
sample question and a link to download the complete
content.
[Editor's comment: Looks a job at Baidu is in heavy
demand to be worth this much attention.]
(tianya.cn) claimed in a September 14 posting that
he had spent half of his monthly living expenses
to purchase the content of Baidu's paper
recruitment test, to be held on Wednesday.
The user, registered as "wangwj1985", posted a
sample question and a link to download the complete
content.
[Editor's comment: Looks a job at Baidu is in heavy
demand to be worth this much attention.]
Friday, September 12, 2008
Baidu launching online payment and C2C soon
Baidu has developed its online payment service,
Baifubao, to be launched soon. So will its C2C
platform, which is under private pilot test already.
China’s online payment market is dominated by
Alipay, under Alibaba Group. According to iResearch,
in second quarter of this year, Alipay took about
51% share of online payment market in China, followed
by Tenpay, an online payment service by Tencent,
China UnionPay’s online payment service and 99Bill.
According to Alipay, by May 2008, the registered users
of Alipay has exceeded 80 million with over
RMB 350 million daily transaction volume and 1.5 million
daily transactions. Besides merchants on Taobao and
Alibaba, there are over 460,000 e-commerce merchants
using Alipay on their sites.
Baifubao, to be launched soon. So will its C2C
platform, which is under private pilot test already.
China’s online payment market is dominated by
Alipay, under Alibaba Group. According to iResearch,
in second quarter of this year, Alipay took about
51% share of online payment market in China, followed
by Tenpay, an online payment service by Tencent,
China UnionPay’s online payment service and 99Bill.
According to Alipay, by May 2008, the registered users
of Alipay has exceeded 80 million with over
RMB 350 million daily transaction volume and 1.5 million
daily transactions. Besides merchants on Taobao and
Alibaba, there are over 460,000 e-commerce merchants
using Alipay on their sites.
Price target reduced
Pacific Crest’s Steve Weinstein this morning cut his
price target for Baidu to $360 from $405, citing
“market conditions and the potential lack of Q3
upside.” He keeps his Outperform rating on the Chinese
Internet search engine.
Weinstein writes that Q3 results are likely to miss
his revenue estimate of $140 million, but nonetheless
likely exceed the Street consensus of $134 million.
He now thinks the number will be about $135 million.
He thinks EPS will be about $1.27, 5 cents below his
current estimate, but 2 cents above the Street.
Weinstein says the company rolled out fee structure
changes in the quarter that should improve quality and
monetization long term, but which “led to a slowdown
of customer acquisitions in Q3.”
price target for Baidu to $360 from $405, citing
“market conditions and the potential lack of Q3
upside.” He keeps his Outperform rating on the Chinese
Internet search engine.
Weinstein writes that Q3 results are likely to miss
his revenue estimate of $140 million, but nonetheless
likely exceed the Street consensus of $134 million.
He now thinks the number will be about $135 million.
He thinks EPS will be about $1.27, 5 cents below his
current estimate, but 2 cents above the Street.
Weinstein says the company rolled out fee structure
changes in the quarter that should improve quality and
monetization long term, but which “led to a slowdown
of customer acquisitions in Q3.”
Thursday, September 11, 2008
Clickfraud lawsuit
Lawyer Huang Weiling of the Guangdong-based law firm of
Guohui has brought suit against Baidu for fraudulent
practices. Huang alleges that after signing up for
Baidu's "competitive search ranking" services in
September 2005, he began to suspect that Baidu
provided misleading click-through information.
He purchased a click-through monitoring application
which produced results differing sharply from
Baidu's.
Guohui has brought suit against Baidu for fraudulent
practices. Huang alleges that after signing up for
Baidu's "competitive search ranking" services in
September 2005, he began to suspect that Baidu
provided misleading click-through information.
He purchased a click-through monitoring application
which produced results differing sharply from
Baidu's.
Social networking sites in China blocking search engines
The blogging site of Chinese Internet portal Sohu,
along with social networking service (SNS) websites
51.com, Xiaonei, Hainei and others, have blocked
Baidu (and other search engines) from indexing the
site content. According to a source at one of the
SNS websites, all of the relatively active SNS
networks are now either blocking search engines
from spidering their sites, or planning to block
them shortly. The reason for the move is to protect
the privacy of users, who typically use their real
names to register with SNS sites.
along with social networking service (SNS) websites
51.com, Xiaonei, Hainei and others, have blocked
Baidu (and other search engines) from indexing the
site content. According to a source at one of the
SNS websites, all of the relatively active SNS
networks are now either blocking search engines
from spidering their sites, or planning to block
them shortly. The reason for the move is to protect
the privacy of users, who typically use their real
names to register with SNS sites.
Susquehanna reiterates Buy ...
saying recent weakness in the stock offers a good entry point.
The firm is reiterating their Positive rating and $444 price
target.
The firm noted that Baidu's CFO, Jennifer Li, attended their
Beijing Management Summit. Commenting on the meeting the firm
said, "During the meetings with investors, Ms. Li expressed
confidence in Baidu's growth momentum in not only the long
term, but also near to medium term. The impact from the
Olympic Games period was in-line with (rather than
underperformed) management's previous expectations, and
business bounced back strongly after the games."
The firm is reiterating their Positive rating and $444 price
target.
The firm noted that Baidu's CFO, Jennifer Li, attended their
Beijing Management Summit. Commenting on the meeting the firm
said, "During the meetings with investors, Ms. Li expressed
confidence in Baidu's growth momentum in not only the long
term, but also near to medium term. The impact from the
Olympic Games period was in-line with (rather than
underperformed) management's previous expectations, and
business bounced back strongly after the games."
Wednesday, September 10, 2008
Campus recruiting
Baidu began its annual recruitment tour on September 10
of over 20 leading universities, including Peking
University and Tsinghua, in an effort to hire over
600 graduates for its 11 technology departments in
2009, reports Hexun. The recruitment, which will
take place in 13 domestic cities, mainly offers
positions in research and development to computer,
software and mathematics majors. Baidu's channel
for campus recruitment went online at
campus.baidu.com on September 5 and has already
received hundreds of applications, said a company
campus recruitment chief. The plan is to hire 600
new grads in 2009.
of over 20 leading universities, including Peking
University and Tsinghua, in an effort to hire over
600 graduates for its 11 technology departments in
2009, reports Hexun. The recruitment, which will
take place in 13 domestic cities, mainly offers
positions in research and development to computer,
software and mathematics majors. Baidu's channel
for campus recruitment went online at
campus.baidu.com on September 5 and has already
received hundreds of applications, said a company
campus recruitment chief. The plan is to hire 600
new grads in 2009.
Monday, September 8, 2008
Taobao blocks Baidu's indexing
Taobao.com has blocked Baidu's search engine from
analyzing and indexing its Web site as Baidu prepares
to launch its own C2C platform. The official reason
is to reduce fraud.
analyzing and indexing its Web site as Baidu prepares
to launch its own C2C platform. The official reason
is to reduce fraud.
New advertising system to be released
Baidu is set to release a new advertising system called
"Phoenix Nest".
According to an industry insider who has seen the
new system, Phoenix Nest is comparable to Google's
AdWords in terms of functionality. It provides a
number of new functions including domain-targeted
advertisements, keyword recommendation services,
budget planning tools, lowest-price display, and
round-robin advertisement display functionality.
Reporting information generated for advertisers
will include expanded information on statistics
across a number of indicators.
A source at Baidu claims that the new functionality
in Phoenix Nest will help solve the company's previous
problems in providing sufficient data to advertisers.
"Phoenix Nest".
According to an industry insider who has seen the
new system, Phoenix Nest is comparable to Google's
AdWords in terms of functionality. It provides a
number of new functions including domain-targeted
advertisements, keyword recommendation services,
budget planning tools, lowest-price display, and
round-robin advertisement display functionality.
Reporting information generated for advertisers
will include expanded information on statistics
across a number of indicators.
A source at Baidu claims that the new functionality
in Phoenix Nest will help solve the company's previous
problems in providing sufficient data to advertisers.
Thursday, September 4, 2008
Baidu has about 192 million users a day
and around 400 million daily searches, per Baidu
sales. Would make Baidu the #2 search engine in
the world, ahead of Yahoo.
sales. Would make Baidu the #2 search engine in
the world, ahead of Yahoo.
Monday, August 25, 2008
Canaccord Adams reiterates sell
with price target $265. As a very successful Olympics
comes to a close, Canaccord Adams raises the issue of a
post-event hangover on the horizon as China faces a
slowing global economy (firm projects GDP growth to slow to
8% next year) and accelerating inflation (around 6% this
month). The firm is also witnessing Chinese Internet leaders
Sina Corp, Sohu.com and Tencent tempering their 2009 growth
expectations, particularly in the ad market, and they expect
this to create downward pressure on Baidu's stock. The firm
says that Baidu should experience slowing growth in the back
half of the year - cited Sept qtr growth to slow due to
interruptions from the Olympics.
comes to a close, Canaccord Adams raises the issue of a
post-event hangover on the horizon as China faces a
slowing global economy (firm projects GDP growth to slow to
8% next year) and accelerating inflation (around 6% this
month). The firm is also witnessing Chinese Internet leaders
Sina Corp, Sohu.com and Tencent tempering their 2009 growth
expectations, particularly in the ad market, and they expect
this to create downward pressure on Baidu's stock. The firm
says that Baidu should experience slowing growth in the back
half of the year - cited Sept qtr growth to slow due to
interruptions from the Olympics.
Friday, August 22, 2008
E-commerce platform in closed beta
Baidu announced today that its e-commerce platform
has been updated and opened to 10,000 closed beta
testers. Business owners who apply for and receive
approval for this round of the beta will receive
free .cn domain names from Baidu and free platform
promotions and customized marketing support. In
addition, these business owners will receive
permission to upload products, design their websites,
and provide business verification information in
preparation for the site's official launch.
has been updated and opened to 10,000 closed beta
testers. Business owners who apply for and receive
approval for this round of the beta will receive
free .cn domain names from Baidu and free platform
promotions and customized marketing support. In
addition, these business owners will receive
permission to upload products, design their websites,
and provide business verification information in
preparation for the site's official launch.
Tuesday, August 19, 2008
Using new SSD storage technology
Baidu has confirmed it has been researching new physical storage
technology to replace the existing hard drives powering its
search technology. The move comes as part of Baidu's plan to
overhaul its system to improve search speed. While the company
has not confirmed exactly what the changes involve, rumors are
circulating on Chinese Internet portal Tencent Tech that Baidu
has finished internal testing and will be ready to launch the
new technology shortly.
According to experts in the search field, the new technology is
likely to be solid-state drive (SSD) storage technology.
Internet portal Sina (Nasdaq: SINA) is reporting that Baidu has
confirmed that the new physical storage is using SSD storage,
and that mechanical hard drives have been removed from all
computer clusters used by Baidu's search engine.
technology to replace the existing hard drives powering its
search technology. The move comes as part of Baidu's plan to
overhaul its system to improve search speed. While the company
has not confirmed exactly what the changes involve, rumors are
circulating on Chinese Internet portal Tencent Tech that Baidu
has finished internal testing and will be ready to launch the
new technology shortly.
According to experts in the search field, the new technology is
likely to be solid-state drive (SSD) storage technology.
Internet portal Sina (Nasdaq: SINA) is reporting that Baidu has
confirmed that the new physical storage is using SSD storage,
and that mechanical hard drives have been removed from all
computer clusters used by Baidu's search engine.
Piper reiterates rating
Piper Jaffray analysts Gene Munster and Vivian B. Li have an Olympic impact update on Baidu.
The analysts said, "Based on meetings with advertisers in China, we believe the impact of the Olympics on Baidu's business has been in line with Street expectations, and Baidu's September quarter is tracking to plan. We believe the first two days of the games saw a dramatic decline in Baidu search, but traffic has gradually improved from the initial drop."
The analysts also highlighted that the company's September quarter guidance calls for a two-month slow down (July 20th- September 20th) from the Olympics. However, the analysts believe this is a conservative expectation. Instead, they expect "search traffic should return to near normal levels within a week after the end of the games (September 1st)."
Finally, the analysts have a Baidu Japan update. They said, "In line with Street expectations, sources in China indicated to expect revenue from Baidu Japan to begin by the end of 2008, with nominal revenue contribution in 2009." However, Munster and Li are not modeling for any Baidu Japan revenue. Instead, they see Baidu Japan as more measurable in 2010.
Overall, they maintain their Buy rating and $468 price target.
The analysts said, "Based on meetings with advertisers in China, we believe the impact of the Olympics on Baidu's business has been in line with Street expectations, and Baidu's September quarter is tracking to plan. We believe the first two days of the games saw a dramatic decline in Baidu search, but traffic has gradually improved from the initial drop."
The analysts also highlighted that the company's September quarter guidance calls for a two-month slow down (July 20th- September 20th) from the Olympics. However, the analysts believe this is a conservative expectation. Instead, they expect "search traffic should return to near normal levels within a week after the end of the games (September 1st)."
Finally, the analysts have a Baidu Japan update. They said, "In line with Street expectations, sources in China indicated to expect revenue from Baidu Japan to begin by the end of 2008, with nominal revenue contribution in 2009." However, Munster and Li are not modeling for any Baidu Japan revenue. Instead, they see Baidu Japan as more measurable in 2010.
Overall, they maintain their Buy rating and $468 price target.
Tuesday, August 12, 2008
Financial news channel outsourced to hexun.com
Baidu is about to outsource its financial news channel to
Hexun.com, one of the top-ranking financial news portals
in China, under an agreement signed by the two parties.
Hexun.com has reportedly prepared for taking over the
job by setting up 30 booths for Baidu employees.
Baidu's financial news channel was founded in October 2007
after it gained a news reporting license at the end of 2006.
Hexun.com, one of the top-ranking financial news portals
in China, under an agreement signed by the two parties.
Hexun.com has reportedly prepared for taking over the
job by setting up 30 booths for Baidu employees.
Baidu's financial news channel was founded in October 2007
after it gained a news reporting license at the end of 2006.
Wednesday, August 6, 2008
Cost per action ad platform launched
After 2 months of testing, Baidu has officially launched
its cost-per action (CPA) advertising platform. Currently
a total of 9 advertisers and brands including online
recruitment site ChinaHR, online retailer Dangdang,
Kingsoft (3888.HK) Anti-virus and Skype are using
the service to deliver their ads to the more than
200,000 members of the Baidu Alliance advertising
network. Under the CPA platform, advertisers are not
charged when a user views or clicks on an ad. Instead,
they are charged only when a viewer performs a
certain action such as registering on the site, downloading
content, or when they perform some other concrete
action.
its cost-per action (CPA) advertising platform. Currently
a total of 9 advertisers and brands including online
recruitment site ChinaHR, online retailer Dangdang,
Kingsoft (3888.HK) Anti-virus and Skype are using
the service to deliver their ads to the more than
200,000 members of the Baidu Alliance advertising
network. Under the CPA platform, advertisers are not
charged when a user views or clicks on an ad. Instead,
they are charged only when a viewer performs a
certain action such as registering on the site, downloading
content, or when they perform some other concrete
action.
Tuesday, August 5, 2008
New Olympic offerings
Baidu is expected to offer real-time reports of gold
medal winners on its homepage, and update its search
engine to provide specialized results for Olympic terms
during the Beijing Olympics, reports TechWeb. Results
for the Chinese term for "Bird's Nest" are currently
topped off with an image and text-based introduction
of the venue and three links: official beijing2008.cn
related maps and schedules and Baidu image search
results.
medal winners on its homepage, and update its search
engine to provide specialized results for Olympic terms
during the Beijing Olympics, reports TechWeb. Results
for the Chinese term for "Bird's Nest" are currently
topped off with an image and text-based introduction
of the venue and three links: official beijing2008.cn
related maps and schedules and Baidu image search
results.
Friday, August 1, 2008
Cosmetic industry and beverage industry reports released
Through massive data mining, Baidu Data Research Center
has collected and published a report displaying brand
competition, and forecasting industry trends for the
beverage industry. It also released another report on
the cosmetics industry covering statistical analysis
of beauty and skin care related information.
Machine translated beverage industry report
Machine translated cosmetic industry report
has collected and published a report displaying brand
competition, and forecasting industry trends for the
beverage industry. It also released another report on
the cosmetics industry covering statistical analysis
of beauty and skin care related information.
Machine translated beverage industry report
Machine translated cosmetic industry report
Initial account fees for advertisers raised?
From the new marketing materials [we] have
received, Baidu has raised the initial
advertising budget for new accounts from
RMB3,000 to RMB5,000. The “consulting” fee
remains the same, RMB600. New advertisers
therefore are required to pay RMB5,600
(about USD824) upfront to set up a new
pay-per-click account.
As a comparison Google account opening fee
stands at RMB50, with prepay advertisers
required to pay a minimum of RMB100 everytime
they recharge their accounts.
[From a blog posting by Patrick Abotsi
http://www.seo4china.com/blog/?p=64 ]
received, Baidu has raised the initial
advertising budget for new accounts from
RMB3,000 to RMB5,000. The “consulting” fee
remains the same, RMB600. New advertisers
therefore are required to pay RMB5,600
(about USD824) upfront to set up a new
pay-per-click account.
As a comparison Google account opening fee
stands at RMB50, with prepay advertisers
required to pay a minimum of RMB100 everytime
they recharge their accounts.
[From a blog posting by Patrick Abotsi
http://www.seo4china.com/blog/?p=64 ]
Thursday, July 31, 2008
New president for Baidu Japan
Baidu announced on Friday that it has appointed former
Yahoo Japan search vice president Jinshang Junyi as
president of Baidu's Japanese subsidiary, effective
August 1, reports Sohu. Jinshang Junyi served as
chief technology officer of Excite Japan for six
years before joining Yahoo as vice president in
2004, said the report. Baidu officially launched its
Japan business in January. The Beijing-based company
expects to spend between $20 million and $25 million
on Japanese search service development this year.
Yahoo Japan search vice president Jinshang Junyi as
president of Baidu's Japanese subsidiary, effective
August 1, reports Sohu. Jinshang Junyi served as
chief technology officer of Excite Japan for six
years before joining Yahoo as vice president in
2004, said the report. Baidu officially launched its
Japan business in January. The Beijing-based company
expects to spend between $20 million and $25 million
on Japanese search service development this year.
Hupo.tv partnership
Shanghai-based online video site Hupo.tv,
a unit of BroadWebAsia announced on Wednesday
that it has partnered with Baidu to mark its
transformation from a video site into an
entertainment location, according to Hupo.tv
CEO Davis Li. Under the agreement, Hupo.tv
will provide Baidu with exclusive interviews,
videos and other content while Baidu will
promote Hupo.tv content to its users. Hupo.tv
had recorded over two million registered
users and 40 million unique visitors per
month, with 70% of visitors coming from
search engines, by May.
a unit of BroadWebAsia announced on Wednesday
that it has partnered with Baidu to mark its
transformation from a video site into an
entertainment location, according to Hupo.tv
CEO Davis Li. Under the agreement, Hupo.tv
will provide Baidu with exclusive interviews,
videos and other content while Baidu will
promote Hupo.tv content to its users. Hupo.tv
had recorded over two million registered
users and 40 million unique visitors per
month, with 70% of visitors coming from
search engines, by May.
Wednesday, July 30, 2008
Baidu interested in Taiwan, selects Japanese CEO
Robin Li told an audience in Taipei on Wednesday
that Baidu sees Taiwan as a potential market,
reports Techweb citing Taiwan's Economic Daily
News. Despite his statement of "obvious interest"
in the island, the chief executive said Baidu
does not currently have any specific plans for
Taiwan entry.
Baidu has already selected a "youthful, local"
man to take over as president of Baidu Japan,
and is expected to release the news this week,
reports Sina quoting a Baidu Japan insider.
An unnamed insider said the new president
worked previously at either Google or Yahoo
Japan, reports Sohu, while the Baidu insider
said the new executive has search technology
and operations experience. Baidu expects to
spend between $20 million and $25 million on
search service development in the Japanese
market this year.
Baidu's nationwide tour to attract sellers to
its consumer-to-consumer (C2C) e-commerce
platform reached its fifth city, Wuhan, on
July 30, reports KissBaidu.com. Beginning in
Beijing on June 18, the promotional trail has
rolled through Beijing, Ningbo, Guangzhou and
Nanjing. Baidu is gearing up to release its
C2C platform before year end.
that Baidu sees Taiwan as a potential market,
reports Techweb citing Taiwan's Economic Daily
News. Despite his statement of "obvious interest"
in the island, the chief executive said Baidu
does not currently have any specific plans for
Taiwan entry.
Baidu has already selected a "youthful, local"
man to take over as president of Baidu Japan,
and is expected to release the news this week,
reports Sina quoting a Baidu Japan insider.
An unnamed insider said the new president
worked previously at either Google or Yahoo
Japan, reports Sohu, while the Baidu insider
said the new executive has search technology
and operations experience. Baidu expects to
spend between $20 million and $25 million on
search service development in the Japanese
market this year.
Baidu's nationwide tour to attract sellers to
its consumer-to-consumer (C2C) e-commerce
platform reached its fifth city, Wuhan, on
July 30, reports KissBaidu.com. Beginning in
Beijing on June 18, the promotional trail has
rolled through Beijing, Ningbo, Guangzhou and
Nanjing. Baidu is gearing up to release its
C2C platform before year end.
Tuesday, July 29, 2008
Calendar function added to Post bar
Baidu added calendars to its online forum channel
Baidu Post Bar on Thursday. Administrators have
the power to add information to the calendar
that appears in their forum. The calendars are
pre-marked with Olympic competitions and public
events.
Baidu Post Bar on Thursday. Administrators have
the power to add information to the calendar
that appears in their forum. The calendars are
pre-marked with Olympic competitions and public
events.
Sunday, July 27, 2008
Tie up with Northgate technologies
Northgate Technologies, an Indian technology,
e-commerce and online advertisement solutions
provider, has formed partnerships with Chinese
advertising giant Baidu, the company said in
a statement released on Thursday.
The statement said that Globe7 HK Limited, a
wholly-owned subsidiary of Northgate
Technologies, has formed partnerships with
Chinese advertising giants Baidu, Alimama and
Allyes, which will build Chinese advertising
exposure to its products Globe7.com, Egglad.com,
Ziddu.com and Longhaier.com.
The partnership with Allyes, one of China's
largest online agencies, allows the exchange
of advertising on Allyes' SmartTrade with
Axill China, Globe7's recently launched
advertising platform for the Chinese-speaking
market.
e-commerce and online advertisement solutions
provider, has formed partnerships with Chinese
advertising giant Baidu, the company said in
a statement released on Thursday.
The statement said that Globe7 HK Limited, a
wholly-owned subsidiary of Northgate
Technologies, has formed partnerships with
Chinese advertising giants Baidu, Alimama and
Allyes, which will build Chinese advertising
exposure to its products Globe7.com, Egglad.com,
Ziddu.com and Longhaier.com.
The partnership with Allyes, one of China's
largest online agencies, allows the exchange
of advertising on Allyes' SmartTrade with
Axill China, Globe7's recently launched
advertising platform for the Chinese-speaking
market.
GS raises PT to $350
Baidu price target raised at Goldman to $350
from $310 based on Q2 results that included
solid revenue growth and lower-than-expected
traffic acquisition costs. See improved
earnings potential in 2009 and 2010 based
on margin expansion. Maintained Neutral rating.
from $310 based on Q2 results that included
solid revenue growth and lower-than-expected
traffic acquisition costs. See improved
earnings potential in 2009 and 2010 based
on margin expansion. Maintained Neutral rating.
Zacks sets PT of $450
The financial results for the second quarter again
exceeded the market consensus. With China's most
popular search engine, Baidu has an advantage over
rivals in China's fast-growing online advertising
market. In addition, Baidu continues to expand its
product lines to attract users and boost revenue.
Although fierce competition from Google prevents
Baidu from building a wide economic moat and Baidu's
Japan expansion will continue to negatively affect
its financial results, we think Baidu is currently
undervalued based on its growth prospects. Therefore,
we are maintaining Buy recommendation for Baidu's
stock.
The stock is currently trading at 65.5x our estimate
for fiscal year 2008 earnings per share, which is
significantly higher than the industry mean and that
of its Chinese peers. The stock is also trading at
42.2x our estimate for fiscal year 2009 earnings per
share. Using a P/E multiple of approximately 65.8x
our fiscal year 2009 earnings per share estimate
yields a target price of $450.00, which we believe
reflects the company's growth prospects.
exceeded the market consensus. With China's most
popular search engine, Baidu has an advantage over
rivals in China's fast-growing online advertising
market. In addition, Baidu continues to expand its
product lines to attract users and boost revenue.
Although fierce competition from Google prevents
Baidu from building a wide economic moat and Baidu's
Japan expansion will continue to negatively affect
its financial results, we think Baidu is currently
undervalued based on its growth prospects. Therefore,
we are maintaining Buy recommendation for Baidu's
stock.
The stock is currently trading at 65.5x our estimate
for fiscal year 2008 earnings per share, which is
significantly higher than the industry mean and that
of its Chinese peers. The stock is also trading at
42.2x our estimate for fiscal year 2009 earnings per
share. Using a P/E multiple of approximately 65.8x
our fiscal year 2009 earnings per share estimate
yields a target price of $450.00, which we believe
reflects the company's growth prospects.
Friday, July 25, 2008
JP Morgan bullish
JP Morgan said it is raising its full-year earnings
estimates for Baidu by 1-2 pct on expectations of a
strong performance in the next few reporting periods.
"We stay bullish. Baidu shall see high growth in
quarters ahead, with higher search adoption and
Internet penetration," JP Morgan said.
Baidu reported second quarter revenue of 802.6 mln
yuan, up 100 pct year on year, which JP Morgan said
was ahead of its forecast.
JP Morgan has an "overweight" recommendation on the
stock and a 380.00 usd price target.
estimates for Baidu by 1-2 pct on expectations of a
strong performance in the next few reporting periods.
"We stay bullish. Baidu shall see high growth in
quarters ahead, with higher search adoption and
Internet penetration," JP Morgan said.
Baidu reported second quarter revenue of 802.6 mln
yuan, up 100 pct year on year, which JP Morgan said
was ahead of its forecast.
JP Morgan has an "overweight" recommendation on the
stock and a 380.00 usd price target.
Piper raises PT to $468
Piper Jaffray analysts Gene Munster and Vivian B. Li
increased their price target from $430 to $468 and
maintained their Buy rating. In addition, they
increased their FY 08 EPS estimate from $4.00 to $4.25,
and raised their FY 09 EPS estimate from $6.14 to $6.68.
The analysts said, "Baidu reported a solid June quarter,
and guided in line with the Street estimate for the Sept
qtr. We believe the company's business remains strong
given: 1) healthy growth in term of both number of
customers (up 41%y/y) and ARPU (up 59% y/y), 2) it is
acquiring more large advertisers in addition to the usual
SMEs, 3) positive traction with new products such as
My Marketing Center, 4) improved margin, and 5) clear
focus on improving search relevance, monetization
capacity, and sales and customer service quality."
In addition, they highlighted Baidu management views
the Olympics as a as a two-month event (7/20-9/20) rather
than the typical Street thinking of a two-week event
(8/8-8/24). Management emphasizes the long term benefit
of attracting internet users to use Baidu search through
the event. However, the analysts believe the company will
face some headwinds "during the game period given traffic
is likely to decrease as users are distracted by the Game,
as well as business and marketing activities being slow
given government is regulating traffic and pollution."
They believe Baidu’s margins "will remain stable in the
lower 30%'s range for the next couple quarters given
that 1) there is still room to grow in terms of bringing
down bandwidth and depreciation cost, 2) no plans for
high promotional cost during the Olympics, 3) no plans
to increase headcount significantly (currently 6800
employees), and 4) previous guidance of $20-25m spending
on Baidu Japan still on track."
increased their price target from $430 to $468 and
maintained their Buy rating. In addition, they
increased their FY 08 EPS estimate from $4.00 to $4.25,
and raised their FY 09 EPS estimate from $6.14 to $6.68.
The analysts said, "Baidu reported a solid June quarter,
and guided in line with the Street estimate for the Sept
qtr. We believe the company's business remains strong
given: 1) healthy growth in term of both number of
customers (up 41%y/y) and ARPU (up 59% y/y), 2) it is
acquiring more large advertisers in addition to the usual
SMEs, 3) positive traction with new products such as
My Marketing Center, 4) improved margin, and 5) clear
focus on improving search relevance, monetization
capacity, and sales and customer service quality."
In addition, they highlighted Baidu management views
the Olympics as a as a two-month event (7/20-9/20) rather
than the typical Street thinking of a two-week event
(8/8-8/24). Management emphasizes the long term benefit
of attracting internet users to use Baidu search through
the event. However, the analysts believe the company will
face some headwinds "during the game period given traffic
is likely to decrease as users are distracted by the Game,
as well as business and marketing activities being slow
given government is regulating traffic and pollution."
They believe Baidu’s margins "will remain stable in the
lower 30%'s range for the next couple quarters given
that 1) there is still room to grow in terms of bringing
down bandwidth and depreciation cost, 2) no plans for
high promotional cost during the Olympics, 3) no plans
to increase headcount significantly (currently 6800
employees), and 4) previous guidance of $20-25m spending
on Baidu Japan still on track."
Thursday, July 24, 2008
Analyst take on Q2 08
RBC Capital Markets noted that the guidance reflects
"uncertainty in traffic patterns around the games.
"There will also be disturbances to the normal
course of business around Beijing, which will
likely affect advertiser spending in that area,"
said analysts Stephen Ju, David Bank and Ross
Sandler in a note to investors. They kept an
"Outperform" rating on the shares, but reduced
their price target by $1 to $384.
Citi Investment Research analysts Jason
Brueschke and Catherine Leung are more
optimistic, keeping a "Buy" rating and
$415 price target. "Despite concerns over
potential disruptions from the Olympics on
Baidu's 3Q, the company gave guidance that
was reassuring enough to allay concerns
over significant impact, in our view."
"uncertainty in traffic patterns around the games.
"There will also be disturbances to the normal
course of business around Beijing, which will
likely affect advertiser spending in that area,"
said analysts Stephen Ju, David Bank and Ross
Sandler in a note to investors. They kept an
"Outperform" rating on the shares, but reduced
their price target by $1 to $384.
Citi Investment Research analysts Jason
Brueschke and Catherine Leung are more
optimistic, keeping a "Buy" rating and
$415 price target. "Despite concerns over
potential disruptions from the Olympics on
Baidu's 3Q, the company gave guidance that
was reassuring enough to allay concerns
over significant impact, in our view."
Wednesday, July 23, 2008
Baidu widens lead over Google per Analysys
Baidu expanded its lead over Google in China's
search engine market in the second quarter,
research firm Analysys International said
Wednesday. In the three months ended June 30,
Baidu had 64.4% of the search engine market by
revenue, up from 60.7% in the first quarter,
Analysys said in a report. Google's share of
the market fell to 26.1% in the second quarter
from 26.8% in the first quarter. China's total
search engine revenues rose 87% from a year
earlier to CNY1.23 billion on increased
advertising spending by small and medium-sized
enterprises, the report said. Analysys said the
Beijing Olympics in the third quarter will
likely drive increased demand for Web searches
in China and further advertising spending by
small and medium enterprises. Distant
third-place contender Yahoo China continued to
lose ground.
search engine market in the second quarter,
research firm Analysys International said
Wednesday. In the three months ended June 30,
Baidu had 64.4% of the search engine market by
revenue, up from 60.7% in the first quarter,
Analysys said in a report. Google's share of
the market fell to 26.1% in the second quarter
from 26.8% in the first quarter. China's total
search engine revenues rose 87% from a year
earlier to CNY1.23 billion on increased
advertising spending by small and medium-sized
enterprises, the report said. Analysys said the
Beijing Olympics in the third quarter will
likely drive increased demand for Web searches
in China and further advertising spending by
small and medium enterprises. Distant
third-place contender Yahoo China continued to
lose ground.
Sunday, July 20, 2008
iResearch numbers for Q2 08
Baidu market share at 62.8%, Google at
26.2%. 2008Q2 Chinese search engine market
reached 1.261 billion yuan, up from 2007 Q2
of 641 million yuan. Estimated 08 Q3 market
will be more than 1.6 billion yuan, up
nearly 100 percent
26.2%. 2008Q2 Chinese search engine market
reached 1.261 billion yuan, up from 2007 Q2
of 641 million yuan. Estimated 08 Q3 market
will be more than 1.6 billion yuan, up
nearly 100 percent
Thursday, July 17, 2008
DCCI: Baidu's search market share at 69%
Google at 12.5%. Based on the Data Center of
the China Internet (DCCI)'s new H1 2008 Report
on Monitoring of Chinese Internet Sites Based
on IMI Indicators.
the China Internet (DCCI)'s new H1 2008 Report
on Monitoring of Chinese Internet Sites Based
on IMI Indicators.
Baidu accepting applications to create new IM groups
Baidu is accepting applications for 1,000 new Baidu Hi,
instant messaging (IM), groups from July 15 to 31.
Baidu requires approved groups to reach a minimum of
five members within a one-week period to continue
operation. The IM software does not enable users to
create their own groups.
instant messaging (IM), groups from July 15 to 31.
Baidu requires approved groups to reach a minimum of
five members within a one-week period to continue
operation. The IM software does not enable users to
create their own groups.
Friday, July 11, 2008
Online dictionary service
Baidu updated its online dictionary service
(dict.baidu.com) this week to support free
English translations of up to 1,000 Chinese
characters at a time, reports Hexun. The
service also offers Chinese to English
translations. The report said most free
translation services support up to
150 characters, making Baidu's upgraded
capacity the largest in China. Baidu
released its online dictionary service
in 2004.
(dict.baidu.com) this week to support free
English translations of up to 1,000 Chinese
characters at a time, reports Hexun. The
service also offers Chinese to English
translations. The report said most free
translation services support up to
150 characters, making Baidu's upgraded
capacity the largest in China. Baidu
released its online dictionary service
in 2004.
Tuesday, July 8, 2008
Piper maintains buy rating
Piper Jaffray analysts Gene Munster and
Vivian Li preview Baidu's June quarter.
They maintain their Buy rating and $430
price target.
Their checks indicate that the June quarter
is tracking slightly above Street estimates
of $112 million in revenue and $0.97 in EPS.
The analysts said, "We expect Baidu to report
slight upside to the Street's estimate of $112m
in revenue, despite concerns over the China
earthquake in May. From our conversation with
4 Baidu advertisers and 2 ad agencies, we believe
Baidu's business remains robust given
1) consistent addition of new customers as
advertisers continue to adapt to paid search
marketing and 2) increased ARPU from bundled
sales of Baidu's display ad and search ad."
They also believe that there is a small negative
impact from the Chinese earthquake on the
company's business "as traffic and small and medium
advertisers in the earthquake area were both
affected." However, the expected impact is not
meaningful.
The street expects revenue of $135 million for
the Q308, up 21% sequentially while the analysts
current revenue estimate for 3Q08 implies
sequential growth of 19%. If Baidu beats the
street in Q208, the analysts highlighted that
sequential growth from June to September
will likely fall below 21%, as the percentage
growth would decline with higher Q2 revenue.
Finally, a decline in Baidu's growth rate is
not a caution signal, rather it is a sign of
the law of large numbers.
Vivian Li preview Baidu's June quarter.
They maintain their Buy rating and $430
price target.
Their checks indicate that the June quarter
is tracking slightly above Street estimates
of $112 million in revenue and $0.97 in EPS.
The analysts said, "We expect Baidu to report
slight upside to the Street's estimate of $112m
in revenue, despite concerns over the China
earthquake in May. From our conversation with
4 Baidu advertisers and 2 ad agencies, we believe
Baidu's business remains robust given
1) consistent addition of new customers as
advertisers continue to adapt to paid search
marketing and 2) increased ARPU from bundled
sales of Baidu's display ad and search ad."
They also believe that there is a small negative
impact from the Chinese earthquake on the
company's business "as traffic and small and medium
advertisers in the earthquake area were both
affected." However, the expected impact is not
meaningful.
The street expects revenue of $135 million for
the Q308, up 21% sequentially while the analysts
current revenue estimate for 3Q08 implies
sequential growth of 19%. If Baidu beats the
street in Q208, the analysts highlighted that
sequential growth from June to September
will likely fall below 21%, as the percentage
growth would decline with higher Q2 revenue.
Finally, a decline in Baidu's growth rate is
not a caution signal, rather it is a sign of
the law of large numbers.
Monday, July 7, 2008
Teaming up with Nokia
Baidu is now offering its mobile search service on
Nokia's mobile widget service "WidSets", reports
Ccidnet.com. The report said that there were
10 million WidSets users worldwide, including
four million in China. Nokia plans to pre-install
WidSets in tens of millions of mobile phones this
year, said the report. Currently users can download
the Widset service to their phones in order to use
Baidu and all other partners' programs. Nokia
launched WidSets (cn.widsets.com) in China last May.
Baidu previously partnered with Nokia to preload
its search service in selected Nokia handsets.
Nokia's mobile widget service "WidSets", reports
Ccidnet.com. The report said that there were
10 million WidSets users worldwide, including
four million in China. Nokia plans to pre-install
WidSets in tens of millions of mobile phones this
year, said the report. Currently users can download
the Widset service to their phones in order to use
Baidu and all other partners' programs. Nokia
launched WidSets (cn.widsets.com) in China last May.
Baidu previously partnered with Nokia to preload
its search service in selected Nokia handsets.
Friday, June 27, 2008
Baidu fined RMB 50,000 for violation
Baidu was ordered to pay RMB50,000 by Shanghai
No.2 Intermediate People's Court yesterday to
recompense Dazhong Transportation and Dazhong
Moving for permitting links, which was damaging
to the companies, to be illegally available on
search pages.
The companies last year discovered that when
entering key words of Dazhong Moving into
Baidu's website an advertising column on the site
appeared, listing a number of competitors that
could take on businesses in the name of Dazhong
Moving. The column is a paid advertising service
offered by Baidu but the search engine argued
that it is merely the advertiser and was not
involved in creating the ad and cannot be held
responsible for content on other websites.
No.2 Intermediate People's Court yesterday to
recompense Dazhong Transportation and Dazhong
Moving for permitting links, which was damaging
to the companies, to be illegally available on
search pages.
The companies last year discovered that when
entering key words of Dazhong Moving into
Baidu's website an advertising column on the site
appeared, listing a number of competitors that
could take on businesses in the name of Dazhong
Moving. The column is a paid advertising service
offered by Baidu but the search engine argued
that it is merely the advertiser and was not
involved in creating the ad and cannot be held
responsible for content on other websites.
5fad not to join music alliance
5fad.com, which recently filed a lawsuit in the US
against Baidu, has decided not to join Baidu's
streaming music service, as per CEO Wu Duanping.
Over 70 music companies participate in this service,
and Baidu shares ad revenue with them.
against Baidu, has decided not to join Baidu's
streaming music service, as per CEO Wu Duanping.
Over 70 music companies participate in this service,
and Baidu shares ad revenue with them.
Thursday, June 26, 2008
C2C platform roadshow
Baidu has started a roadshow to promote its new
C2C service to sellers.
* Baidu C2C is a free platform, you can even get a
free domain name
* Baidu C2C generates revenue from Baidu P4P
service, i.e. keyword search results listing, and
other online ads.
* Many infrastructures and preparations are
ready, including Baidu Hi (IM tool), online payment and
logistic service.
According to its C2C promotional materials, Baidu will
help sellers to sell to targeted users based on analyzing
user profile and behavior in Baidu.
C2C service to sellers.
* Baidu C2C is a free platform, you can even get a
free domain name
* Baidu C2C generates revenue from Baidu P4P
service, i.e. keyword search results listing, and
other online ads.
* Many infrastructures and preparations are
ready, including Baidu Hi (IM tool), online payment and
logistic service.
According to its C2C promotional materials, Baidu will
help sellers to sell to targeted users based on analyzing
user profile and behavior in Baidu.
Wednesday, June 25, 2008
Pacific Crest out with a buy rating
In a note to clients, Pacific Crest analyst
Steve Weinstein advised clients to buy Baidu,
China's leading Internet search engine, ahead
of its second-quarter earnings report.
Weinstein said second-quarter revenues are
likely to be above the high end of the
company's previous guidance of $111 million
to $114 million, and his own estimate of
$114.5 million. Weinstein said he anticipates
raising his 2008 revenue forecast after the
company announces second-quarter earnings,
and he thinks Baidu will show 100% revenue
growth this year and next year.
Steve Weinstein advised clients to buy Baidu,
China's leading Internet search engine, ahead
of its second-quarter earnings report.
Weinstein said second-quarter revenues are
likely to be above the high end of the
company's previous guidance of $111 million
to $114 million, and his own estimate of
$114.5 million. Weinstein said he anticipates
raising his 2008 revenue forecast after the
company announces second-quarter earnings,
and he thinks Baidu will show 100% revenue
growth this year and next year.
Tuesday, June 24, 2008
Server problems
China Webmaster, 6/24/08
Industry rumors are circulating that the recent
shrinkage in the volume of Baidu's indexed
websites was caused by physical hardware problems.
Zhang Kuanxi, an engineer in Baidu's public
relations group, claims that problems have
surfaced as Baidu's physical infrastructure has
scaled less aggressively than its global strategic
development. More than 200 server clusters in
Baidu's internal file system were apparently
damaged, and over 1000 servers in these clusters
suffered physical damage to their hard drives.
This caused a large volume of data loss, and
the apparent reduction in the number of
indexed files. This problem was corrected
earlier this morning.
Industry rumors are circulating that the recent
shrinkage in the volume of Baidu's indexed
websites was caused by physical hardware problems.
Zhang Kuanxi, an engineer in Baidu's public
relations group, claims that problems have
surfaced as Baidu's physical infrastructure has
scaled less aggressively than its global strategic
development. More than 200 server clusters in
Baidu's internal file system were apparently
damaged, and over 1000 servers in these clusters
suffered physical damage to their hard drives.
This caused a large volume of data loss, and
the apparent reduction in the number of
indexed files. This problem was corrected
earlier this morning.
Sunday, June 15, 2008
Baidu Hi downloaded 200,000 person-times
Baidu Hi, formally promoted a week ago has
been downloaded for more than 200,000
person-times on China's popular software
download sites like Download.sina.com.cn,
Skycn.com, Onlinedown.net, and Duote.com.
been downloaded for more than 200,000
person-times on China's popular software
download sites like Download.sina.com.cn,
Skycn.com, Onlinedown.net, and Duote.com.
More on the 5fad lawsuit
Chinese Internet music provider 5fad.com
has filed a lawsuit against Baidu at the
United States District Court for the
Southern District of New York.
Wu Duanping, CEO of 5fad.com said in a
statement, "This litigation will be a
cornerstone in China's intellectual property
protection cases." However since the case is
being heard across the Pacific Ocean in the
United States, it's unclear what type of
actions future plaintiffs can take against
companies that are not in some way based in
the United States.
The lawsuit focuses on copyright infringement
against Baidu.com, and the litigation seeks
relief against an ongoing infringement of
the 5fad.com's copyrights in a number of music
works. Baidu is accused of allowing Internet
users to directly listen to and download
copyright works via its website without
5fad.com's authorization.
has filed a lawsuit against Baidu at the
United States District Court for the
Southern District of New York.
Wu Duanping, CEO of 5fad.com said in a
statement, "This litigation will be a
cornerstone in China's intellectual property
protection cases." However since the case is
being heard across the Pacific Ocean in the
United States, it's unclear what type of
actions future plaintiffs can take against
companies that are not in some way based in
the United States.
The lawsuit focuses on copyright infringement
against Baidu.com, and the litigation seeks
relief against an ongoing infringement of
the 5fad.com's copyrights in a number of music
works. Baidu is accused of allowing Internet
users to directly listen to and download
copyright works via its website without
5fad.com's authorization.
Thursday, June 12, 2008
Partnering with NBA
Baidu has teamed up with the NBA to run
the "NBA Trivia Team Grand Final"
promotion. By editing articles on Baidu's
"Baidupedia" and sharing their knowledge,
Internet users will have the opportunity
to win special NBA prizes.
A spokesperson for Baidu explained that
the promotion would run between June 6
and June 20, and to take part, users
could visit the competition's official
website,
http://www.baidu.com/search/baike/zhuti-nbatuansai,
and join a team of their choice. Within
the first 5 days, over 1,000 new articles
had been created by participants.
the "NBA Trivia Team Grand Final"
promotion. By editing articles on Baidu's
"Baidupedia" and sharing their knowledge,
Internet users will have the opportunity
to win special NBA prizes.
A spokesperson for Baidu explained that
the promotion would run between June 6
and June 20, and to take part, users
could visit the competition's official
website,
http://www.baidu.com/search/baike/zhuti-nbatuansai,
and join a team of their choice. Within
the first 5 days, over 1,000 new articles
had been created by participants.
Wednesday, June 11, 2008
5fad files lawsuit in the US
5fad.com, an online digital music provider in
China announced that it has filed a lawsuit
against Baidu on June 10 at the US District
Court for the Southern District of New York.
The lawsuit focuses on copyright infringement.
The District Court has since accepted the case.
China announced that it has filed a lawsuit
against Baidu on June 10 at the US District
Court for the Southern District of New York.
The lawsuit focuses on copyright infringement.
The District Court has since accepted the case.
Friday, June 6, 2008
IM launched officially
Global IP Solutions is supplying the video
software solution for video chat. The GIPS
VideoEngine adapts to the available bandwidth,
which ensures that a video connection is
maintained at all times and prevents the video
from freezing.
GIPS VideoEngine works with standard or
proprietary video codec implementations and
reduces the RAM and CPU required to deliver
high quality video on computers. Baidu Hi
is integrated with a Web page keyword search
function, putting it alongside rival products
such as MSN and QQ, said Shen Haoyu, Baidu's
vice president.
"As a newcomer, we don't aim to compete with
rivals. Instead, the IM is a key component for
us to establish an online community," Shen said
during Baidu World 2008, which was held in
Shanghai.
Tencent's QQ and Microsoft's MSN lead the IM
market in China, with almost 400 million
registered users, according to Analysys
International.
As well as IM, Baidu has launched cyber games
and online forum services and will have an
online auction Website by the end of this year.
The new services aim to improve user loyalty
and profitability of the company's core search
business, according to Baidu, which has 160,000
clients in China. It has also launched a new
service which provides industry research
reports, promotion advice and market trend
prediction, besides traditional search.
software solution for video chat. The GIPS
VideoEngine adapts to the available bandwidth,
which ensures that a video connection is
maintained at all times and prevents the video
from freezing.
GIPS VideoEngine works with standard or
proprietary video codec implementations and
reduces the RAM and CPU required to deliver
high quality video on computers. Baidu Hi
is integrated with a Web page keyword search
function, putting it alongside rival products
such as MSN and QQ, said Shen Haoyu, Baidu's
vice president.
"As a newcomer, we don't aim to compete with
rivals. Instead, the IM is a key component for
us to establish an online community," Shen said
during Baidu World 2008, which was held in
Shanghai.
Tencent's QQ and Microsoft's MSN lead the IM
market in China, with almost 400 million
registered users, according to Analysys
International.
As well as IM, Baidu has launched cyber games
and online forum services and will have an
online auction Website by the end of this year.
The new services aim to improve user loyalty
and profitability of the company's core search
business, according to Baidu, which has 160,000
clients in China. It has also launched a new
service which provides industry research
reports, promotion advice and market trend
prediction, besides traditional search.
Tuesday, June 3, 2008
Baidu world conference in Beijing on June 5
Baidu World Conference is an annual forum
hosted by Baidu. It brings together
international marketing experts, business
leaders, economists and industry analysts
to discuss the changing trends in new media.
Approximately 1500 people will be in
attendance.
hosted by Baidu. It brings together
international marketing experts, business
leaders, economists and industry analysts
to discuss the changing trends in new media.
Approximately 1500 people will be in
attendance.
Call to boycott Baidu over MP3 searches
IFPI and China audio-video recording association
decided to collectively lobby the National
Copyright Administration of China to take action
against Baidu on linking to illegal MP3 music.
Singling out Baidu as “the largest and most
incorrigible purveyor of pirated music in
China,” Qu Jing Ming, director general of
the Music Copyright Society of China, said
the alliance “realize that in order to
establish a healthy business environment it
is not enough to depend just on legal means
but also through business and administrative
initiatives, public opinion and other methods
so that eventually we will marginalize and
blacklist pirating organizations.”
International heavyweights Universal Music,
EMI and Warner-Chappell Music are participating
in the effort, along with their Chinese
counterparts Linfair Music, Linfair Music
Publishing, Seed Music, Taihe Rye Music, R2G,
Zhu Shu Fang Music and Yue Lin Music. Together,
they represent more than 80% of the Chinese
music market and a significant portion of
international mainstream music.
The recording industry claims Baidu has given
Chinese Web surfers access to links for
unlicensed music streaming and downloading
via its Web site, and earned significant
advertising revenues due to the massive online
traffic it has enjoyed as a result.
decided to collectively lobby the National
Copyright Administration of China to take action
against Baidu on linking to illegal MP3 music.
Singling out Baidu as “the largest and most
incorrigible purveyor of pirated music in
China,” Qu Jing Ming, director general of
the Music Copyright Society of China, said
the alliance “realize that in order to
establish a healthy business environment it
is not enough to depend just on legal means
but also through business and administrative
initiatives, public opinion and other methods
so that eventually we will marginalize and
blacklist pirating organizations.”
International heavyweights Universal Music,
EMI and Warner-Chappell Music are participating
in the effort, along with their Chinese
counterparts Linfair Music, Linfair Music
Publishing, Seed Music, Taihe Rye Music, R2G,
Zhu Shu Fang Music and Yue Lin Music. Together,
they represent more than 80% of the Chinese
music market and a significant portion of
international mainstream music.
The recording industry claims Baidu has given
Chinese Web surfers access to links for
unlicensed music streaming and downloading
via its Web site, and earned significant
advertising revenues due to the massive online
traffic it has enjoyed as a result.
Friday, May 30, 2008
Baidu IM second beta next week
Rumor is that the second beta of Baidu Hi,
the instant messaging client, will be
released on June 5. Leaked versions suggest
that the new beta will feature a number of
new features:
1. Editing of custom user icons
2. Integration with the TTPlayer music player
3. Import/export of emoticons
4. Emoticon bundle trading
5. Automatically adding people with similar
interests to users' buddy lists
6. Integration with Baidu Post Bar, Baidu
Zhidao, Baidupedia and other products
7. Group voting (i.e. when a group leader posts
a poll, users can conveniently place votes)
the instant messaging client, will be
released on June 5. Leaked versions suggest
that the new beta will feature a number of
new features:
1. Editing of custom user icons
2. Integration with the TTPlayer music player
3. Import/export of emoticons
4. Emoticon bundle trading
5. Automatically adding people with similar
interests to users' buddy lists
6. Integration with Baidu Post Bar, Baidu
Zhidao, Baidupedia and other products
7. Group voting (i.e. when a group leader posts
a poll, users can conveniently place votes)
Tuesday, May 27, 2008
Oppenheimer raises PT to $333
from $315. The call came out at around 2:00
Eastern time today. "Perform" rating retained
- no upgrade due to valuation concerns.
Eastern time today. "Perform" rating retained
- no upgrade due to valuation concerns.
Thailand's premier search engine entering China
Buzz Technologies Inc (OTC:BZTG) having just
claimed the title of Thailand's number 1 ad
supplier from rival Google has launched in China
competing against Baidu. The Company has added
to the range of Ads Services to Include
Text
Search (Text/Banner)
Widgets
Games
Video
IPTV
Mobile
and will soon launch Print and TV Advertising.
claimed the title of Thailand's number 1 ad
supplier from rival Google has launched in China
competing against Baidu. The Company has added
to the range of Ads Services to Include
Text
Search (Text/Banner)
Widgets
Games
Video
IPTV
Mobile
and will soon launch Print and TV Advertising.
Consolidating sales in Foshan and Zhongshan
Baidu's Zhongshan and Foshan branches are
being merged into Shenzhen to form a
southern China sales center covering all
three cities.
Since 2005, Baidu has being building up its
own sales team in order to avoid paying
resellers, with key agency arrangements
in Beijing, Shanghai, Shenzhen and Guangzhou
being shut down. According to one source,
this new move is part of an effort to
consolidate Baidu's direct sales strategy.
being merged into Shenzhen to form a
southern China sales center covering all
three cities.
Since 2005, Baidu has being building up its
own sales team in order to avoid paying
resellers, with key agency arrangements
in Beijing, Shanghai, Shenzhen and Guangzhou
being shut down. According to one source,
this new move is part of an effort to
consolidate Baidu's direct sales strategy.
Thursday, May 22, 2008
Zhongsou loses music piracy lawsuit
Zhongsou, one of China’s largest internet
search engines, has been found guilty of
infringing record companies’ copyrights
by the Copyright Bureau of Hebei province
and Cangzhou city.
The authorities have ordered the company
to stop infringing immediately and pay
the maximum penalty of RMB 100,000
(£7,300), in what marks the first time
that administrative penalties have been
levied on a company running a music
delivery service.
The fine imposed is the largest fine
for copyright infringement in the
history of Hebei province, while three
computer servers belonging to Zhongsou
have also been forfeited.
Zhongsou provides a similar music
delivery service to those offered by
Yahoo China and Baidu, based on
delivering music to their users via
“deep links” to tracks on third party
sites.
This type of service was ruled to
infringe copyright by Chinese civil
courts in December 2007. IFPI Asia
regional director Leong Mayseey
says, “This should send a signal to
other similar infringing music
services. “China has the potential
to be one of the most dynamic digital
music markets in the world, but legal
services cannot compete when
household names like Zhongsou
deliberately break the law, abuse
the rights of others and seek to drive
advertising revenue by providing illegal
content. We cannot tolerate such abuse
of our members’ rights and other
internet companies that are breaking
the law should be warned that we are
coming after them next.”
The lawsuit by 5fad against Baidu
will be ruled on this month.
search engines, has been found guilty of
infringing record companies’ copyrights
by the Copyright Bureau of Hebei province
and Cangzhou city.
The authorities have ordered the company
to stop infringing immediately and pay
the maximum penalty of RMB 100,000
(£7,300), in what marks the first time
that administrative penalties have been
levied on a company running a music
delivery service.
The fine imposed is the largest fine
for copyright infringement in the
history of Hebei province, while three
computer servers belonging to Zhongsou
have also been forfeited.
Zhongsou provides a similar music
delivery service to those offered by
Yahoo China and Baidu, based on
delivering music to their users via
“deep links” to tracks on third party
sites.
This type of service was ruled to
infringe copyright by Chinese civil
courts in December 2007. IFPI Asia
regional director Leong Mayseey
says, “This should send a signal to
other similar infringing music
services. “China has the potential
to be one of the most dynamic digital
music markets in the world, but legal
services cannot compete when
household names like Zhongsou
deliberately break the law, abuse
the rights of others and seek to drive
advertising revenue by providing illegal
content. We cannot tolerate such abuse
of our members’ rights and other
internet companies that are breaking
the law should be warned that we are
coming after them next.”
The lawsuit by 5fad against Baidu
will be ruled on this month.
Monday, May 19, 2008
Positive Pali report
Baidu has rallied by viewing online gaming
``as a life saver and growth driver,'' Pali
Capital Inc. said in a report.
U.S. investors in particular have been
``skeptical'' about growth prospects of online
gaming in China, where the Internet fills a void
of ``limited'' entertainment options for young
people, New York-based analyst Tian X. Hou wrote
in a report this month.
``Online gamers comprise approximately 28 percent
of Internet users in China, versus 55 percent in
South Korea,'' the Pali report said. ``We believe
gamer growth will eventually catch up.''
``as a life saver and growth driver,'' Pali
Capital Inc. said in a report.
U.S. investors in particular have been
``skeptical'' about growth prospects of online
gaming in China, where the Internet fills a void
of ``limited'' entertainment options for young
people, New York-based analyst Tian X. Hou wrote
in a report this month.
``Online gamers comprise approximately 28 percent
of Internet users in China, versus 55 percent in
South Korea,'' the Pali report said. ``We believe
gamer growth will eventually catch up.''
Friday, May 16, 2008
Baidu to control expenditure
New CFO Jennifer Li says the company doesn't
plan any major strategic expansion except for
the Japan venture and the C2C business. Her
focus is going to be on increasing income,
reducing expenditure and improving employee
productivity. Baidu already has around 6700
employees. In essence management focus is
shifting from growth to aligning internal
management to existing services.
plan any major strategic expansion except for
the Japan venture and the C2C business. Her
focus is going to be on increasing income,
reducing expenditure and improving employee
productivity. Baidu already has around 6700
employees. In essence management focus is
shifting from growth to aligning internal
management to existing services.
Thursday, May 15, 2008
TheStreet.com upgrades Baidu from sell to hold
Strengths : robust revenue growth, a solid
financial position with no debt and notable
return on equity.
Weakness: a premium valuation.
Its quick ratio of 2.98 demonstrates an
ability to cover short-term cash needs.
Gross profit margin is rather high at 70%.
A net profit margin of 26% compares
favorably to the industry average. Shares
have nearly tripled in price over the past
year, netting the stock a price-to-earnings
ratio of 132.92, which makes it much more
expensive than the industry average.
Baidu.com had been rated sell since March 20.
financial position with no debt and notable
return on equity.
Weakness: a premium valuation.
Its quick ratio of 2.98 demonstrates an
ability to cover short-term cash needs.
Gross profit margin is rather high at 70%.
A net profit margin of 26% compares
favorably to the industry average. Shares
have nearly tripled in price over the past
year, netting the stock a price-to-earnings
ratio of 132.92, which makes it much more
expensive than the industry average.
Baidu.com had been rated sell since March 20.
Wednesday, May 14, 2008
Baidu to attend two conferences
JP Morgan 36th annual technology conference
(05/19 and 05/20)
Goldman Sachs Ninth anuual Internet conference
(05/21 and 05/22)
(05/19 and 05/20)
Goldman Sachs Ninth anuual Internet conference
(05/21 and 05/22)
Thursday, May 8, 2008
Baidu Japan visitors at 0.7 million in Feb
Visitor traffic to baidu.jp keeping a fast growing
momentum to reach 713,000 person-times in February
2008.
momentum to reach 713,000 person-times in February
2008.
Thursday, May 1, 2008
Free ad space to support Olympics
Beginning April 30, Baidu will open up
"golden placement" webpage ad locations
on its site, worth nearly RMB 10 mln,
as well as a number of promotional
resources, in order to cheer on this
summer's Olympic Games. At the same time,
Baidu will partner with a large number
of well-known domestic brands to form
a partnership to provide advertising
resources to alliance partners free of
charge in order to promote the Beijing
Olympics.
Baidu MP3 search, Post Bar, and the Baidu
logo banner will all be featured in a
series of Olympic promotional activities.
"golden placement" webpage ad locations
on its site, worth nearly RMB 10 mln,
as well as a number of promotional
resources, in order to cheer on this
summer's Olympic Games. At the same time,
Baidu will partner with a large number
of well-known domestic brands to form
a partnership to provide advertising
resources to alliance partners free of
charge in order to promote the Beijing
Olympics.
Baidu MP3 search, Post Bar, and the Baidu
logo banner will all be featured in a
series of Olympic promotional activities.
Tuesday, April 29, 2008
Zacks buy recommendation
"Using a P/E multiple of approximately 71.4x
our fiscal year 2009 earnings per share
estimate yields a target price of $450,
which we believe reflects the company's
growth prospects. Therefore, we are
maintaining a Buy recommendation for
Baidu's stock."
our fiscal year 2009 earnings per share
estimate yields a target price of $450,
which we believe reflects the company's
growth prospects. Therefore, we are
maintaining a Buy recommendation for
Baidu's stock."
Friday, April 25, 2008
Analyst take on Q1 08 - Pacific Crest and Piper Jaffray
* Steve Weinstein, Pacific Crest: Keeps
Outperform rating and raises target price to
$405 from $350, based on a valuation of 60x 2009
EPS of $6.75. "We consider this reasonable given
Baidu’s growth, market dominance and potential for
upside."
* Gene Munster, Piper Jaffray: "The Street can
debate the beat in March, but the positive guidance
is undeniable," he writes. Munster maintains his
Buy rating and $430 price target.
Outperform rating and raises target price to
$405 from $350, based on a valuation of 60x 2009
EPS of $6.75. "We consider this reasonable given
Baidu’s growth, market dominance and potential for
upside."
* Gene Munster, Piper Jaffray: "The Street can
debate the beat in March, but the positive guidance
is undeniable," he writes. Munster maintains his
Buy rating and $430 price target.
Analyst take on Q1 08 - Deutsche bank & Canaccord Adams
# George Chu, Deutsche Bank: Cut rating on the stock
to Sell, from Neutral, citing margin concerns; notes
while revenue in the quarter beat his forecast by 7%,
EPS only beat by 3%. He says rising costs of acquiring
traffic could pressure margins.
# Colin Gillis, Canaccord Adams: Gillis repeated his
Sell rating and $265 target on the stock. He says the
valuation is expensive; that Street expectations for
the second half may be too high; that the company
could be vulnerable to litigation about MP3 downloads;
that there is uncertainty it can monetize its foray
into Japan; and that a boost in spending from the
Olympics “may wane faster than expected.”
to Sell, from Neutral, citing margin concerns; notes
while revenue in the quarter beat his forecast by 7%,
EPS only beat by 3%. He says rising costs of acquiring
traffic could pressure margins.
# Colin Gillis, Canaccord Adams: Gillis repeated his
Sell rating and $265 target on the stock. He says the
valuation is expensive; that Street expectations for
the second half may be too high; that the company
could be vulnerable to litigation about MP3 downloads;
that there is uncertainty it can monetize its foray
into Japan; and that a boost in spending from the
Olympics “may wane faster than expected.”
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