Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Baidu Buying Stake in Renren's Group-Buying Site

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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2607898, ~/Articles/ArticleHandler.aspx, 9/26/2016 5:02:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
BIDU $191.72 Down -3.73 -1.91%
Baidu CAPS Rating: *****
RENN $1.95 Up +0.05 +2.63%
Renren CAPS Rating: *