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Qihoo 360 Responds to Citron Research Report

PR Newswire, 11/02/11

Chinese online security software developer Qihoo 360 (NYSE: QIHU) has responded to a recent Citron Research report claiming that Qihoo 360 is overvalued. Qihoo 360 said it has 370 mln active users, primarily through internet security products, which are mainly desktop applications. Since regular users are not required to visit 360.cn when they use Qihoo's security solutions, Qihoo 360 argues that Citron's emphasis on traffic to its 360.cn portal is misplaced. Qihoo 360 also suggested that Citron's use of Alexa data is misleading, as few Qihoo 360 users have Alexa browser toolbar plugins on their computers, leading Alexa to underestimate traffic.

Qihoo 360 also claims its partnership with Google focuses primarily on search referral, which directs search traffic to Google by incorporating a Google search bar within Qihoo 360's Safe Browser. 360.cn does not have Doubleclick-powered banner ads or Google AdSense links. Doubleclick Adplanner is designed for tracking banner ads and Google AdSense ads and cannot accurately measure 360.cn's web traffic.

Qihoo 360 added that Citron made no effort to reach out and communicate directly with senior management.

To view Citron's full report, please click here.

Editor's Note: For more background on the issues raised by Citron in its report, please see "Kingsoft Wins Lawsuit Against Qihoo 360 CEO," MD 8/30/11 issue, "Qihoo 360 Loses Appeal in Lawsuit Against Tencent," MD 9/30/11 issue, and "MIIT Lays Down the Law for Qihoo 360 and Tencent," MD 11/22/10 issue.

Keywords: Internet traffic online advertising Internet browser DoubleClick Google active users AdSense Qihoo 360 QIHU online search search advertising ad union scandal

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