Baidu Buys Majority Stake in Nuomi
Baidu, proprietor of China’s largest search engine, said this week that it has agreed to purchase a majority stake in Nuomi, a popular group-buying site. Terms of the deal: $160 million for a 59 percent stake.
For Baidu, which has been searching for ways to diversify its revenue model, snapping up a chunk of Nuomi seems a savvy move. With 3.8 million active paying users, Nuomi is among China’s top group-buying sites. And its users buy a lot of merchandise with their smartphones. Indeed, about 30 percent of Nuomi’s sales are made through mobile devices.
That’s important for Baidu, whose business is becoming increasingly more mobile-focused thanks to China’s fast-growing smartphone market. Nuomi offers geographically targeted daily deals, a business that should dovetail nicely with Baidu’s location-based services.
Baidu’s investment in Nuomi is the company’s second big deal this month. On August 14 it agreed to acquire the 91 Wireless app store from Netdragon Websoft for $1.85 billion.