Possible Google Exit Positions Baidu For Success In China
By: Doug Caverly
2010-03-19 It's no secret that Google's stock hasn't been in good shape lately; indeed, since it announced the possibility of "a new approach to China" in early January, the search giant's shares have lost 6.65 percent of their value. However, Baidu, which is the dominant search company in China, stands to gain quite a lot from this mess.
 | | Google Exit Positions |
In the same January 12th-to-today timespan, Baidu's stock has gone up 42.32 percent, which is rather amazing. If Google really leaves China (any final decision to exit remains unconfirmed at this point), the figure's liable to increase, too.
As for some other ramifications of Google's possible pullout, the 20-ish percent share of the Chinese search market Google's fought for would likely fall under Baidu's control. Then a lot of advertisers would turn to the Chinese company for better access to local consumers.
Want to look even further ahead? Baidu's talked before about expanding into Europe, and a big increase in revenue could lead to that move. Meaning Google would have to (or get to, depending on how you view each company's odds of success) face Baidu again in a different market.
Of course, this is all speculation. Any number of other possibilities could play out, and given what a roller coaster ride this story has represented so far, another turn or two wouldn't come as a shock.
Tag: Google, China
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View All Articles by Doug Caverly
About
the Author:
Doug is a staff writer for SearchNewz, WebProNews, InternetFinancialNews, and SecurityProNews.
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