this afternoon, baidu officially announced a $160 million investment in everyone’s glutinous rice network, in order to obtain a 59% stake in the latter, the deal is expected to be completed in the third quarter of 2013. It will further enrich the baidu LBS + O2O strategy.
glutinous rice by everyone company was founded in 2010, is one of the leading group in China. In the second quarter of 2013, the glutinous rice net total turnover of about $120 million, about 30% of which comes from the mobile terminal, active subscribers of 3.8 million.
“high quality glutinous rice network group buying and local information platform, can with baidu existing mobile LBS, maps and other business to achieve complementary advantages”, baidu’s chief financial officer Jennifer li said, “glutinous rice network covering many cities the cumulative sales team and user base will help baidu better build localization LBS platform for merchants.”
the company’s chairman and chief executive, Mr Chen said: “the group buying business in China has huge potential. Especially in the era of mobile Internet, this kind of business model will continue to flourish. Baidu’s strategic investment will further promote the industry of glutinous rice network status, and generate significant synergies, this let us feel excited. We look forward to the sustained and rapid development of glutinous rice networks and bring value for shareholders.”
since this year, baidu gradually increase the intensity of investment, had earlier $1.9 billion deal to buy 91 wireless, which China’s Internet dealmaking record.