UCWeb CEO Denies Rumor of Baidu Acquisition Again
Tencent Tech, 2/19/13
On February 18, rumors once again surfaced that Chinese internet company Baidu (Nasdaq: BIDU) had reached a USD 1.2 bln agreement to acquire a controlling stake in mobile browser maker UCWeb before the Chinese New Year holiday. UCWeb chairman and CEO Yu Yongfu issued a three-point response, saying that:
1) UCWeb is a startup team that prizes independent development;
2) The UCWeb team welcomes any measures that can assist in the development of its products and technologies; and
3) UCWeb will not comment on the persistent rumors that the company has been acquired by Baidu or Internet services and security software provider Qihoo 360 (NYSE: QIHU).
A source close to talks between the two companies confirmed that Baidu and UCWeb had maintained contact, but said that any arrangement was "still under discussion" and that no agreement had yet been reached.
UCWeb had 400 mln quarterly active users in Q4 2012, of which 100 mln were overseas users. The company's mobile gaming platform 9game has become one of China's three largest mobile gaming platforms alongside 91 Assistant and Qihoo 360. Hans Tung, a partner at venture capital firm Qiming Ventures, revealed that a large portion of UCWeb's revenues at present come from games and advertising, and that mobile games are set to become the core of the company's revenues within the next one to two years.
Editor's Note: For more background on this topic, please see "UC Browser's Quarterly Active Users Reach 400 Mln" MD 12/13/12 issue and "UC Mobile Confirms 9game Acquisition" MD 6/12/12 issue.
Keywords: mobile gaming overseas wireless Baidu mobile browser UCWeb active users BIDU Yu Yongfu 9game Hans Tung M&A
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