Bloomberg News

Baidu Said in Talks to Develop Smart TVs to Challenge Alibaba

August 27, 2013

Baidu Said in Talks to Develop Smart TVs to Challenge Alibaba

The Baidu Inc. logo is displayed on a window at the company's headquarters in Beijing. Photographer: Nelson Ching/Bloomberg

Baidu Inc. (BIDU:US), China’s largest search engine, is in talks with a Chinese manufacturer to help develop televisions connected to the Internet, according to two people familiar with the matter.

The company is discussing working with Huan Technology Ltd. to develop a set-top box or a chip for use in smart TVs, the people said, asking to not be identified because the discussions are private. Huan Technology is a joint venture between Sichuan Changhong Electric Co. and TCL Multimedia Technology Holdings. (1070) TCL is the third-largest flat-panel TV maker in the world by revenue share, researcher DisplaySearch said in June.

Baidu is expanding its online video business to boost its share of a market that consultant IResearch estimates may generate 16.2 billion yuan ($2.6 billion) in revenue next year. The U.S.-listed company is competing for users with Alibaba Group Holding Ltd., China’s largest e-commerce company, which said in July it had designed a smart TV operating system and set-top box.

Baidu, based in Beijing, declined to comment in an e-mailed statement. He Dan, a spokeswoman for Guangzhou-based Huan Technology, declined to comment.

Shares of Baidu fell 2.8 percent to $135.12 in New York trading yesterday. The stock has gained 35 percent this year, compared with a 19 percent increase in the Nasdaq Composite Index. (CCMP)

The company last week agreed to buy a 59 percent stake in e-commerce website operator Nuomi Holdings Inc. for about $160 million.

Baidu also bought Internet video business PPStream Inc. in June for $370 million and has been combining it with IQiyi.com, which it acquired last year, to create China’s largest online video platform.

To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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Companies Mentioned

  • BIDU
    (Baidu Inc)
    • $244.34 USD
    • 0.43
    • 0.18%
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