DoCoMo Does JV with Baidu in China
DoCoMo reported to take 20% JV position, est value of $24M, with search giant Baidu in China to distribute mobile content: http://bit.ly/nxYbsL
Japanese telecom operator NTT DoCoMo Inc. said Friday it has agreed with Chinese Internet search operator Baidu Inc. to set up a joint venture in China to distribute games and other mobile phone content in the mainland in a move that could help them cash in on the expected growth of smartphone users.
Baidu, China’s largest online search engine, will hold 80% of the joint venture, while DoCoMo, Japan’s largest mobile carrier, will hold 20%. DoCoMo said its investment will amount to about Y2 billion (US$24.6 million). Baidu didn’t disclose financial details but based on the break down of the stake ownership, its investment would amount to about Y8 billion.
Baidu spokesman Kaiser Kuo confirmed the plans for a joint venture, but declined to comment on what type of products the joint venture might produce, saying the company doesn’t discuss unreleased products.
DoCoMo will provide Baidu with its know-how in building content distribution systems for mobile handsets, it said. For DoCoMo, the partnership is part of efforts to increase its overseas presence. Seeking long-term growth, DoCoMo has been looking for more opportunities to expand overseas. Via: TotalTelecom.