Baidu to Buy Mobile App Store
Baidu intends to buy Chinese mobile app store 91 Wireless for a total of $1.9 billion, Baidu announced today.
Baidu, the leading Chinese language Internet search provider, signed a memorandum of understanding with Chinese online gaming company NetDragon to purchase all 57.41% of of the shares of 91 Wireless that NetDragon owns.
The agreement calls for Baidu and NetDragon to come to definite terms on the transaction by Aug. 14. Until that date, NetDragon cannot approach or discuss with any other party regarding the sale of 91 Wireless.
Baidu said it intends to purchase the remaining shares of 91 Wireless from the other shareholders under the same terms as it reaches with NetDragon, but only if those shareholders are willing to sell their shares by Aug. 14.
91 Wireless is, according to a 2011-2012 report from iResearch, the largest third-party app distributor in China.
The article Baidu to Buy Mobile App Store originally appeared on Fool.com.Fool contributor Dan Radovskyhas no position in any stocks mentioned. The Motley Fool recommends and owns shares of Baidu. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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