Sina Tech, 3/15/11
An industry source close to Chinese internet company Baidu's (Nasdaq: BIDU) strategic investment division said today that the company is working with download client maker Xunlei to develop a new download services client. Baidu and Xunlei began talks at the end of last year, and are currently at work on development. While no timetable has been announced for the software, the source said that it would be released "before long."
After last year's battle between Shenzhen-based internet company Tencent (0700.HK) and Qihoo 360, an industry source said, Baidu internally reassessed the importance of client-side products and determined that it would release a major client-side product for strategic purposes.
Other sources say that Baidu is working to invest further in Xunlei, but any final agreement between the two companies cannot be confirmed at this point. Spokespersons for both companies declined to comment when asked.