Baidu vs. Qihoo: It's War!

In the video below, senior technology analyst Eric Bleeker examines the war between Qihoo 360 and Baidu that's heating up by the day. After introducing its search engine in mid-August, various reports put Qihoo's market share near 10%. Quite the feat considering its recent emergence onto China's search scene. While Qihoo claimed its entry into the search space was to give consumers more choice, it's clear what the company's real target is: Baidu. Qihoo took aim at the company by issuing a statement saying the Chinese search market wasn't happy with its current "monopoly." 

Those are strong words, and bad blood goes back between the two company's founders. In the last week we've seen Baidu respond with redirecting searches from 360 to its home page, while Qihoo fought back by removing Baidu search for areas it lacks the technology on, like Maps. 

As Eric notes, this could be the beginning of a long war between the companies much like the one we witnessed between Qihoo and Tencent over antivirus software. However, in the end he feels Baidu has too many advantages to give up much search share to Qihoo. To hear his full thoughts on this new battle in the Chinese Internet space, watch the video below.

If you're a Baidu investor wondering how to play the company as the Chinese Internet space heats up, we've recently completed a premium research report on the company. It not only gives a full write-up on Baidu, but it also comes with continuing updates through the year so you can get a feel for how threats like Qihoo affect the company. Click here to get started now!

Eric Bleeker owns shares of Baidu. The Motley Fool owns shares of Baidu. Motley Fool newsletter services recommend Baidu and Sohu.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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