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

Q4OS 1.6, Orion

The significant Q4OS 1.6 'Orion' release receives the most recent Trinity R14.0.3 stable version. Trinity R14.0.3 is the third maintenance release of the R14 series, it is intended to promptly bring bug fixes to users, while preserving overall stability. The complete list and release notes you will find on the Trinity desktop environment website. New Q4OS 1.6 release includes set of new features and fixes. The default desktop look has been slightly changed, Q4OS 'Bourbon' start menu and taskbar has been polished a bit and has got a few enhancements, for example the icons size varies proportionally to the system panel. Native Desktop profiler tool has got new, optimized 'software to install' list. Read more

Learning More About Explicit Fencing & Android's Sync Framework

With the sync validation framework leaving the staging area in Linux 4.9 and other work going on around the Android sync framework and explicit fencing, this functionality is becoming a reality that ultimately benefits the Linux desktop. Collabora developer Gustavo Padovan presented at this week's LinuxCon 2016 conference about explicit fencing support in the mainline kernel with a "new era of graphics." Read more

Ubuntu Leftovers

Leftovers: Software Development

  • fakecloud
  • A new version of pristine-tar
  • Getting RSS feeds for news websites that don’t provide them
    On the technical side, this seems to be one of the most stable pieces of software I ever wrote. It never crashed or otherwise failed since I started running it, and fortunately I also didn’t have to update the HTML parsing code yet because of website changes. It’s written in Haskell, using the Scotty web framework, Cereal serialization library for storing the history of the past articles, http-conduit for fetching the websites, and html-conduit for parsing the HTML. Overall a very pleasant experience, thanks to the language being very convenient to write and preventing most silly mistakes at compile-time, and the high quality of the libraries.
  • Quick Highlight
    Martin Blanchard put together a new “quick highlight” plugin for Builder this last week. It was a great example of how to submit a new feature, so I just wanted to highlight it here. Post to bugzilla, attach a patch, and we will review quickly and help with any additional integration that might be necessary.