technology news Beijing time on November 7th morning news, according to Bloomberg news, informed sources, due to other Internet giants China invested heavily to attract consumers, Baidu also plans to raise $500 million for most Baidu takeaway.
informed sources said that the financing size of at least $300 million, but has not yet finalized. Baidu takeaway is competing with competitors for distribution and business resources. Baidu takeaway competitors include Alibaba $1 billion 250 million investment hungry and support the new big Tencent.
Baidu declined to comment on the financing plan. The company strongly denied the Chinese media with regard to its consideration of the sale of takeaway business, or merger with its sticky rice news.
Baidu shares fell 0.5% on Friday in the U.S. stock market trading, to close at $167.70. After falling 17% in 2015, the stock has fallen by about $11% this year.
Massive investment in the field of
O2O prompted companies to seize the share by massive subsidies, thus pushing up costs. There have been a number of companies out of the fight, for example, Hero (Delivery) in Germany earlier this year to withdraw from the Chinese market.
users in this field has reached a white hot competition. In August of this year, Baidu sued Tencent and Sohu, accusing him of publishing on the health status of Baidu takeaway businesses are not eligible for defamation.
Baidu is outside its desktop search business to increase investment, hoping to find a new growth point in the mobile Internet wave. This also constitutes a pressure on the company’s profitability. Baidu’s operating margin at the end of 9 fell to 15.3% in 2015 to $17.6%, compared with more than $50% in 2011.
this expenditure also constitute a pressure on the stock, when Baidu announced in February this year, Iqiyi may sell business, a compression of the cost is expected to push the stock rose. But Baidu abandoned the deal in July.
although Baidu and Alibaba and Tencent, known as China’s Internet industry BAT three giants, but the company has apparently lost the favor of investors. Baidu cut Friday’s market value of only $58 billion, but Tencent and Alibaba up to $240 billion.
Baidu CEO Robin Li in April earnings conference call, said the company will take away the takeaway business by the end of 2015, earlier this year to complete the financing of $2 billion 500 million valuation. (Qiao Fu)