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Sunday, January 17, 2010

Baidu revenue will increase 350 million U.S. dollars if Google leaves China

Internet news:

Analysts expect Google to leave China once the Chinese search engine Baidu (BIDU. O: Quote) in 2010 will result in additional income of 350 million U.S. dollars, equivalent to earnings per share increase of 4.11 U.S. dollars.

Google search recently for the content of the review and Hacker threat to withdraw from the Chinese market. SusquehannaFinancialGroup analysts in a research report that Ruogu song withdrawing from the Chinese, Baidu became the largest indirect beneficiaries, is expected to occupy the Chinese online search market, up 80% of the share.

Report said that Baidu increase in income which will mainly occur in 2011 rather than 2010.

Analysts pointed out that once left the Chinese Google, Baidu's traffic will rapidly increase, but compared to the increase in traffic, Baidu increase in income will be much slower. Baidu due to increase in income depends on access to new customers and to attract existing customers to increase advertising in the execution.

However, Baidu executives said late last year, expects to switch to keyword search auction system will continue in 2010 a quarter have a negative impact.

Baidu closes at 467.68 U.S. dollars last Friday, up 0.74%; the same day, Google closed at 580.00 U.S. dollars, down 1.67%.

According to data from Analysys International, the fourth quarter of 2009, Baidu in the Chinese search engine market share of 58.4%, Google 35.6%.

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