Rumor: Baidu in Talks to Acquire Nuomi, Ding Ding Map
Sohu IT, 8/13/13
According to an industry source, Chinese internet company Baidu (Nasdaq: BIDU) and social networking site Renren's (NYSE: RENN) group buy site Nuomi.com have undergone two months of negotiation over a potential merger, and talks have progressed to the due diligence phase. However, a remaining point of contention between the companies, Nuomi.com favors an investment deal instead of an outright merger, while Baidu wants to purchase a controlling stake in Nuomi. Representatives from the two companies have declined to comment on the matter.
Baidu has previously approached online ratings and group buy site Dianping regarding a potential acquisition, according to the source. Dianping has also garnered interest from e-commerce conglomerate Alibaba Group. Despite these claims, Dianping co-founder Edward Long has suggested the company is disinclined to be acquired by either firm, saying, "it is more likely that Dianping will pursue an independent IPO sometime in the future."
According to another industry source, Baidu is also pursuing investment negotiations with Shanghai-based Gsuo Information Technology, operator of local listings search engine Ding Ding Map. Gsuo's development team is currently seeking an investor other than Alibaba, which already holds a 30% stake in Gsuo. Gsuo does not wish to take additional funding from Alibaba to the point that Alibaba gains a controlling share of the company.
Editor's Note: For more information on this topic, please see "Alibaba Increases Investment in Ding Ding Map," MD 4/23/13 issue.
Keywords: mobile mapping Internet Baidu Dianping Ding Ding Map Renren BIDU Edward Long Nuomi Alibaba Group online ratings M&A group buying RENN
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