The Chinese GOOGLE coming soon

Discussion in 'Stocks' started by Slim Harpo, Aug 1, 2005.

  1. China Search Engine Set for IPO

    Sunday July 31, 11:25 pm ET

    By Joe Mcdonald, Associated Press Writer, the Chinese Version of Google, Prepares for U.S. Stock Market Debut

    BEIJING (AP) -- takes its name from a 900-year-old poem but its ambitions are ultramodern -- to become the Chinese-language equivalent of Internet search giant Google Inc.

    Little known abroad, 5-year-old says it already is the world's sixth most-visited Internet site, thanks to a strong following from China's 100 million-plus Web surfers.

    Now the startup founded by two Chinese veterans of American tech firms is preparing to follow Google's example with an initial public offering in the United States, hoping to raise $45 million. is in the front ranks of an emerging group of Chinese companies that are trying to create Internet services uniquely suited to their country's ideogram-based language and the political restrictions of its communist government

    "Here's a homegrown company that has created what really is a very strong search product," said David Wolf, managing director of Wolf Group Asia, a Beijing consulting firm. was founded in 2000 by Robin Li, who earned a master's degree in computer science from the State University of New York at Buffalo and worked for U.S. search engine firm Infoseek, and Eric Xu, a Ph.D. from Texas A&M and a veteran of American biotech firms. Xu later left the company.

    The name -- pronounced "by doo" -- means "one hundred times." It comes from a Song dynasty poem and refers to a man ardently searching for his lover in a festival crowd.

    Google bought 2.6 percent of last year in a move that outsiders thought might lead to the American giant taking over the tiny Chinese startup. But has stayed independent.

    Google's influence shows, though, in's spare white site that is nearly identical to the American firm's.

    By contrast, competitor -- bought in 2003 by U.S.-based Yahoo! -- is a busier, colorful site with animated graphics.

    Other early backers were U.S.-based venture capital firms including Draper Fisher Jurvetson and the investment arm of International Data Group. Draper Fisher is's biggest single shareholder, with a 28 percent stake.'s planned IPO is modest beside the $1.2 billion that Google's public offering raised last August. But its tentative price for the block of shares being offered values the whole Chinese company at $650 million. No date has been announced for the IPO.

    The company says it already makes money -- some $303,000 in the three months that ended on March 31.

    China's communist government promotes Internet use for business and education. But it also has launched the world's most sweeping effort to police what its people can see online, blocking access to material deemed subversive or pornographic.

    The extent of the censorship controls has been highlighted by the changes that foreign companies have made when they launch Chinese versions of commonly used services.

    Free-speech activists criticized Microsoft Corp. when the blogging section of its recently launched China-based Web portal rejected such words as democracy, freedom and human rights, labeling them "forbidden language."

    Google has also taken heat for blocking access to material that Chinese leaders dislike. A search on Google's China-based service for such topics as Taiwan, the Dalai Lama or the banned spiritual group Falun Gong returns a message that says "site cannot be found."

    And communist leaders, early believers in the Internet's economic promise, seem intent on keeping foreign involvement to a minimum in order to keep the profits for China's own firms.'s decision to stay independent could help it with intensely nationalistic Chinese regulators, eliminating any doubts about divided loyalties, said Wolf.

    "It's a company that has grown up in the Chinese system. It's going to be a favorite of a lot of partners here and an implicit favorite of the government for that reason," he said.

    Internet firms with foreign partners have been challenged by regulators who demand assurances that Chinese managers will stay in place and not surrender control to outsiders., and other Chinese search engines also face daunting linguistic challenges that designers working in English and most other languages don't.

    Chinese uses thousands of ideograms. On a computer, they usually are written by typing words phonetically in Roman letters, then using special software to convert them to characters.

    Making things even more complex, the mainland's communist leaders simplified many characters after the 1949 revolution, while Taiwan, Hong Kong, Singapore and other societies use the old system.

    So a search engine must sift through twice as many characters. And Chinese is written without spaces between words, making it hard for a machine to figure out where one ends and the next begins.

    Then there are the quirks of a writing system with a vast literary history, 1 billion modern users and pressure to keep up with technology and international commerce.'s advertising notes that Chinese has 38 ways to say "I."

    Financial analysts forecast fast growth but brutal competition in the industry over the next few years, leaving only a handful of competitors.

    Already, has been through a court battle with after accusing its rival of adding elements to its software that blocked users from reaching the site.

    A Beijing court ruled against in April, ordering it stop such "unfair competition."

    The lawsuit "did much to reinforce Baidu's underdog image," said Wolf. "That turned out to be very positive for them in China. It made people check them out."
  2. 300k in revenues. lol
  3. True but they are profitable and the way people bought up GOOG, this might be a a good IPO to watch.....especially if GOOG continues its march back over $300.00 on to $400.00

    But my personal feeling is GOOG is going to head south big time first...starting tomorrow even..I'm watching it closely..
  4. KevinK

    KevinK Guest

    I don't know, it will be interesting to see how it tests the 50dma.
  5. great. another way to look up girlie pics.

    *rolling eyes*
  6. It's a good thing I know Chinese... else I would not have been able to search "Chinese pussy."

    I tell ya, it pays to be intelligent.
  7. I started this thread back on the 1st and so many laughed and made fun of the thread..

    Who's laughing now :D
    #10     Aug 5, 2005