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"UPDATE:\u00A0Baidu has just\u00A0confirmed\u00A0it will buy 91 Wireless for a total of $1.85 billion, after taking into account a dividend of $52.06 million by 91 Wireless to its existing shareholders.\r\n\r\nAfter the transaction has been completed (expected to be in the fourth quarter of 2013), 91 Wireless will become a wholly-owned subsidiary of\u00A0Baidu\u00A0and will continue to operate under its existing management team as an independent company.\r\n\r\nPreviously, Chinese search giant Baidu\u00A0announced that it intends to acquire third-party app distribution platform 91 Wireless for a total of $1.9 billion, which will include purchasing online gaming company NetDragon's 57.41 percent equity interest in 91 Wireless.\r\n\r\nBaidu has already signed a Memorandum of Understanding with NetDragon, and before the signing of definitive agreements or a negotiation deadline of August 14 (whichever is earlier), NetDragon is banned from approaching or discussing with any third parties the sale of 91 Wireless.\r\n\r\nNetDragon will get $1.09 billion for its indirect equity interest of approximately 57.41 percent in 91 Wireless, while\u00A0Baidu plans to purchase the remaining equity interest -- which NetDragon does not own -- from other shareholders based on terms and conditions that will be similar to those offered to NetDragon.\r\n\r\nBaidu's move marks a strategy that the Chinese Internet company has set into motion since last year.\u00A0Late last year, Baidu raised $1.5 billion\u00A0as it sought to close down\u00A0debts and provide itself with the\u00A0financial\u00A0cloud to pursue future strategic opportunities, which could include mergers, acquisitions and investments.\r\n\r\nSpeaking on an analyst call\u00A0in August\u00A0last year, Baidu CEO Robin Li had voiced the company\u2019s intention to pursue deals that will bring it more value, particularly on mobile -- and 91 Wireless fits this mold.\r\n\r\nA Baidu spokesman told TNW following this latest announcement:\r\nMobile app stores are an important entry point to the mobile Internet, and are thus of great strategic interest to Baidu.\r\nTwo months ago, Baidu\u00A0announced it would buy\u00A0PPS Video\u00A0for $370 million,\u00A0becoming China\u2019s biggest video provider as it already owns\u00A0iQiyi\u00A0after\u00A0buying a majority stake\u00A0last November.\r\n\r\nThe search giant has been trying to diversify as its monopoly in the search engine market has been threatened by a new entrant -- Qihoo 360. After launching its search engine last August,\u00A0Qihoo quickly jumped up to second place and has been eroding Baidu's dominant position. If rumors of Qihoo buying third-ranked search engine Sogou are true, that may pose an even bigger threat to Baidu -- and explains its need to seek other sources of business to boost its revenue.\r\n\r\nImage Credit: Simon Lin via AFP/Getty Images"^^<http://www.w3.org/2001/XMLSchema#string>
<http://thenextweb.com/asia/2013/07/16/chinese-internet-giant-baidu-to-buy-app-distribution-platform-91-wireless-for-1-9-billion/?fromcat=all>