PR Newswire Asia, 6/21/11
Chinese online real estate service provider China Real Estate Information Corporation (Nasdaq: CRIC) and Chinese online search giant Baidu (Nasdaq: BIDU) have entered into a new strategic partnership.
Under the agreement, CRIC will become Baidu's premier strategic online real estate partner and will have the exclusive right to sell Baidu's Brand Link keyword advertising product to real estate industry advertising clients for the next three years. In addition, the two companies will continue their previous cooperation in several other Baidu products, including Baidu Website Promotion, Baidupedia, Baidu Knows and Baidu Maps, to further expand the search-based online advertising market for the real estate industry.
The new agreement expands the agreements previously entered in 2010. In February of 2010, the two companies signed cooperation agreements for a series of Baidu web products. Further, in May of 2010, CRIC obtained the exclusive right to build and operate Baidu's online real estate channels for the following four years. Starting in August of 2010, CRIC successfully built and launched Baidu's Leju online real estate channels for new homes, secondhand properties, and rentals. CRIC will continue launching additional online real estate related channels on Baidu.com, including the Baidu Leju home furnishing channel, under the 2010 agreements.
The expanded strategic agreement will take effect in August 2011. Under the terms of the agreement, CRIC will pay Baidu a total of RMB 180 mln over the three-year term (RMB 40 mln in the first year, RMB 60 mln in the second year and RMB 80 mln in the third year), in addition to RMB 200 mln over four years under the 2010 agreements. These agreements will give CRIC the exclusive right to sell Baidu's real estate Brand Link product to all real estate developers in China during the contract period. CRIC will continue building and operating the Baidu real estate and home furnishing related channels. CRIC will retain all associated revenues from these agreements.