Baidu (NASDAQ:BIDU) -- the so-called "Google of China" --  announced today that it has agreed to pay $160 million cash to purchase a 59% interest in the Groupon-like Nuomi Holdings subsidiary of Chinese social networking company Renren (NYSE:RENN).

Nuomi will be issuing new shares in exchange for Baidu's cash. In a statement, Baidu described Nuomi as being "a leading provider of group-buying services in China," which some translate into a Chinese version of Groupon, LivingSocial, or any number of other "deals" sites inhabiting the Internet.

Baidu says that Nuomi generated approximately $120 million in sales in Q2 2013, suggesting an annualized revenue stream of at least $480 million -- and about a 0.56-times-sales valuation  on the deal. By way of comparison, America's own Groupon shares carry a 2.75-times-sales valuation.

Baidu expects this deal to close in Q4 2013.

Baidu is China's biggest search engine operator. Founded in 2010, Nuomi Holdings, which offers group-buying and local information services in China, had 3.8 million active paying users as of the second quarter, with 30% of sales coming from mobile devices.

-- Material from The Associated Press was used in this report.


Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Baidu and Google. The Motley Fool owns shares of Baidu and Google. 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.