Facebook has apparently accepted Baidu's
Facebook hasn't had to partner with regional faves in the past, but things are different in China. There are regulatory hurdles to clear in a booming country that is wary of outsiders. Locals also stick to the homegrown darlings. Google
Facebook CEO Mark Zuckerberg toured China in December, setting up meetings with the leaders of Baidu, SINA
Baidu makes sense. Sina's Weibo is already gaining traction as a celebrity micro-blogging site. Renren's thinking IPO. Tencent was able to parlay the success of its QQ online messaging platform to roll out its own micro-blogging site last year. Baidu has plenty of social initiatives cooking, but none are as promising as hooking up with Facebook to succeed at marrying search with social in a way that Google, Yahoo!
Yahoo!, Google, and Microsoft have either tried to buy Facebook whole or faltered in rolling out their own social networking solution.
Consumers can be fickle when it comes to social networking, and Facebook is the one with the hot hand at the moment with 600 million registered users worldwide.
The pairing of Baidu and Facebook is a slam dunk on paper, but sit tight on those growth projections. China will have to green light the offering, and we don't know if consumers will take to a restrictive social network. The potential -- if successful -- is tremendous for both companies, though.
Baidu's lofty multiples and Facebook's sky-high pre-IPO valuation may not seem so outlandish by the time this all plays out.
Can Facebook and Baidu make social networking work in China? Share your thoughts in the comment box below.
Google and Microsoft are Motley Fool Inside Value picks. Baidu and Google are Motley Fool Rule Breakers recommendations. Sina is a Motley Fool Stock Advisor pick. China Mobile and Yahoo! are Motley Fool Global Gains choices. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of China Mobile, Google, Microsoft, and Yahoo!. Motley Fool Alpha LLC owns shares of Microsoft. 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.
Longtime Fool contributor Rick Munarriz has only been to China once, but he relishes admiring its dot-com revolution from afar. He does not own shares in any of the stocks in this article. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.