SHANGHAI (Reuters) – Chinese internet search giant Baidu Inc. will sell almost one-third of the voting shares of the online travel agency Ctrip.com International, Ltd., is committed to raise around $1 billion, as it looks to invest in new sources of revenue.
FILE PHOTO: A sign of Baidu is seen at the glass in his booth at Digital China, exhibition in Fuzhou, Fujian province, China, May 5, 2019. REUTERS/Stringer/File Photo
Baidu, Ctrip, the largest shareholder, with a 19% share, is the offering of 31.3 million American Depositary Shares (“ADS’s”), each of 0.125 ordinary share of Ctrip. The insurers will also have a greenshoe option-of the more than 4.7 million on ADVERTISING, Ctrip said in a statement.
Baidu and Ctrip in the year 2015, and agreed to be a part of a swap deal, in which Ctrip is exchanged for some of the newly issued shares, the shares of which Baidu was held in a rival travel firm Qunar Cayman Islands, and more.
Baidu, whose search engine dominates the market in China, and it is worth the effort to be in the middle of more restrictive regulations, and a trade war-hit economy is being undermined, our clients, our wallets, and the loss of advertising revenue.
While Baidu has been expanding into other lines of business such as cloud services and the ‘mini’ in the Baidu App is the most successful so far is with the video streaming service iQiyi, which is in competition with the Alibaba backed Youku, and Tencent Holdings’ Tencent Video.
Recently, Baidu has invested in the science forum, Guoke, and Zhihu, China’s answer to on Quora.
“This is a strategic move for Baidu,” said Xue Yu, a tech analyst at market research firm IDC.
Baidu is a way to attract companies, such as Ctrip’s that are connected to the on-line consumers in off-line services, such as hotels, allowing you to concentrate on building its own content ecosystem, Xue said.
Baidu have lost more than one-third of its market value this year. Ctrip stock, which closed at $32.15 on Monday, rose by 18%, but has slipped in the last quarter of the year.
Goldman Sachs Asia LLC and J. P. Morgan Securities LLC are acting as joint book-runners for the proposed offering, Ctrip said.
Baidu declined to comment.
Reporting Yingzhi Yang in Shanghai, and Sayantani Ghosh in Singapore; editing by Jason Neely