Google is heading a group of investors that are committing nearly $100 million to China’s largest search engine, Baidu.com.
Li stated that the investment would be used to improve its technology and product. Baidu also intends to improve its brand recognition with the capital from the investment.
Google’s move may have been in response to Yahoo’s acquisition of 3721, a competitor search engine. Not only is Google now an investor in Baidu’s search engine, they also have their own search presence in China.
Both Baidu and Google’s Chinese search engine receive many of China’s 80 million web users.
Li said that Baidu conducts a large amount of searches, numbering in to the tens of millions. He declined comment on whether Baidu would become a subsidiary of Google, much like 3721.com became one for Yahoo after they were acquired.
Google, obeying an SEC imposed quiet period, declined immediate comment.
Chris Richardson is a search engine writer and editor for Murdok. Visit Murdok for the latest search news.
