Language Selection

English French German Italian Portuguese Spanish

Baidu.com Ready for Stock Market Debut

Filed under
Web

Baidu.com takes its name from a 900-year-old poem but its ambitions are ultramodern - to become the Chinese-language equivalent of Internet search giant Google Inc. Little known abroad, 5-year-old Baidu.com says it already is the world's sixth most-visited Internet site, thanks to a strong following from China's 100 million-plus Web surfers.

Now the startup founded by two Chinese veterans of American tech firms is preparing to follow Google's example with an initial public offering in the United States, hoping to raise $45 million. A date for the offering has not been announced.

Baidu.com is in the front ranks of an emerging group of Chinese companies that are trying to create Internet services uniquely suited to their country's ideogram-based language and the political restrictions of its communist government.

"Here's a homegrown company that has created what really is a very strong search product," said David Wolf, managing director of Wolf Group Asia, a Beijing-based consulting firm.

Baidu.com was founded in 2000 by Robin Li, who earned a master's degree in computer science from the State University of New York at Buffalo and worked for U.S. search engine firm Infoseek, and Eric Xu, a Ph.D. from Texas A&M and a veteran of American biotech firms. Xu is no longer with Baidu.com.

The name - pronounced "by doo" - means "one hundred times." It comes from a Song dynasty poem and refers to a man ardently searching for his lover in a festival crowd.

It didn't take Google long to see the firm's potential. It bought 2.6 percent of Baidu.com last year in a move that outsiders thought might lead to the American search engine taking over the tiny Chinese startup. But Baidu.com has stayed independent.

Google's influence shows, though, in Baidu.com's spare white Web site that is nearly identical to its investor's.

By contrast, competitor 3721.com - bought in 2003 by U.S.-based Yahoo! - is a busier, colorful site with animated graphics.

Other early backers include U.S.-based venture capital firms with a reputation for spotting promising newcomers: Draper Fisher Jurvetson - Baidu.com's biggest shareholder, with a 28 percent stake - and the investment arm of International Data Group.

Baidu.com's IPO is modest beside the $1.2 billion that Google raised through its public offering last August. But its tentative price for the block of shares being offered values the whole Chinese company at $650 million.

The company says it is already making money - some $303,000 for the three months that ended on March 31.

China's communist government promotes Internet use for business and education. But it has also launched sweeping efforts to police online content, blocking access to material deemed subversive or pornographic.

The extent of the censorship controls has been highlighted by the changes that foreign companies make when they launch Chinese versions of commonly used services.

Free-speech activists criticized Microsoft Corp. when the blogging section of its recently launched China-based Web portal rejected such words as democracy, freedom and human rights, labeling them "forbidden language."

A search on Google's China-based service for such topics as Taiwan, the Dalai Lama or the banned spiritual group Falun Gong returns a message that says "site cannot be found."

And communist leaders, early believers in the Internet's economic promise, seem intent on keeping foreign involvement to a minimum in order to keep the profits for China's own firms.

Baidu.com's decision to stay independent could help it with intensely nationalistic Chinese regulators, eliminating any doubts about divided loyalties, said Wolf.

"It's a company that has grown up in the Chinese system. It's going to be a favorite of a lot of partners here and an implicit favorite of the government for that reason," he said.

Internet firms with foreign partners have been challenged by regulators who demand assurances that Chinese managers will stay in place and not surrender control to outsiders.

Baidu.com, 3721.com and other Chinese search engines also face daunting linguistic challenges that designers working in English and most other languages don't.

Chinese uses thousands of ideograms. On a computer, they usually are written by typing words phonetically in Roman letters, then using special software to convert them to characters.

Making things even more complex, the mainland's communist leaders simplified many characters after the 1949 revolution, while Taiwan, Hong Kong, Singapore and other societies use the old system.

So a search engine must sift through twice as many characters. And Chinese is written without spaces between words, making it hard for a machine to figure out where one ends and the next begins.

Then there are the quirks of a writing system with a vast literary history, 1 billion modern users and pressure to keep up with technology and international commerce. Baidu.com's advertising notes that Chinese has 38 ways to say "I."

Financial analysts forecast fast growth but brutal competition in the industry over the next few years, leaving only a handful of competitors.

Already, Baidu.com has been through a court battle with 3721.com after accusing its rival of adding elements to its software that blocked users from reaching the Baidu.com site.

A Beijing court ruled against 3721.com in April, ordering it stop such "unfair competition."

The lawsuit "did much to reinforce Baidu's underdog image," said Wolf. "That turned out to be very positive for them in China. It made people check them out."

By JOE McDONALD
Associated Press

More in Tux Machines

today's howtos

LinuxAndUbuntu Distro Review Of The Week - Deepin OS

​Depth/Deepin OS is not just another Linux Distro, but one with something new to show. Deepin OS is simply speaking, just beautiful. Deepin OS, formerly known as Deepin, Linux Deepin, and Hiweed GNU/Linux is a Linux distro with an identity crisis. Seriously, this distro has undergone name changes you always have to check twice if the name is still the same. And that is all the negative you are going to say about this distro. Honestly speaking, Deepin OS is surely going to blow you away. I have been keeping an eye on this distro since 2013 and it still manages to impress me. Read more

KDE Leftovers: digikam, KDevelop, Kate, GSoC, and Akademy

  • [digikam] Call to Test the Pre-Release of 5.6.0
    Once again a lot has been going on behind the scenes since the last release. The HTML gallery tool is back, database shrinking (e.g. purging stale thumbnails) is also supported on MySQL, grouping has been improved and additional sidecars can now be specified. Therefore the release of 5.6.0 will be (is already) delayed, as we would like to invite you to test all these features. As usual they are available in the pre-release bundles or obviously directly from the git repository. Please report any dysfunctions, unexpected behaviour or suggestions for improvement to our bug tracker.
  • KDevelop runtimes: Docker and Flatpak integration
    On my last blog post I discussed about how some assumptions such as the platform developed on can affect our development. We need to minimize it by empowering the developers with good tools so that they can develop properly. To that end, I introduced runtimes in our IDE to abstract platforms (much like on Gnome’s Builder or Qt Creator).
  • Kate 17.04.1 available for Windows
  • GSoC - Community Bonding Period with Krita
  • First month report: my feelings about gsoc
  • My Akademy Plans
    The Akademy programme (saturday, sunday) is actually pretty long; the conference days stretch into feels-like-evening to me. Of course, the Dutch are infamous for being “6pm at the dinner table, and eat potatoes” so my notion of evening may not match what works on the Mediterranean coast. Actually, I know it doesn’t since way back when at a Ubuntu Developer Summit in Sevilla it took some internal-clock-resetting to adjust to dinner closer to midnight than 18:00.

Gaming News: Shogun, SteamOS, Dawn Of War III