According to a number of Chinese language tech blogs, Chinese internet company Baidu (Nasdaq: BIDU) is currently engaged in talks with software developer and online entertainment provider Kingsoft (3888.HK) to take a controlling share in the company. The transaction has received approval from a number of Kingsoft investors, including Chinese internet and mobile services firm Tencent (0700.HK). An announcement about Baidu's investment in Kingsoft will be made before the Chinese New Year Holiday in February.
Editor's Note: According to Tencent Tech, citing an informed source, Baidu began high level talks with Kingsoft following recent conflicts in China's search market with internet services and security software provider Qihoo 360 (NYSE: QIHU). As described by Tencent Tech, Baidu's investment in Kingsoft represents a strategic investment and Baidu will not take a controlling stake in Kingsoft. Baidu and Kingsoft have reached an investment agreement and will soon complete the related paperwork for the investment.