Friday, June 23, 2006

Google dump investment in - why?

Google has sold its 2.3% stake in Chinese online search engine, clearing the way for the two companies to compete head-on for the country's 111m internet users.

This has been on the cards for a while. Their investment in Baidu was done purely as a hedge to ensure they could play in the Chinese market even if the government banned direct involvement.

But since Google have given into China's notoriously restrictive policies they got their ticket to the market - so who needs Baidu? Mind you its pretty popular with Chinese Internet users!

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