Yahoo! seeks to expand in China
People's Daily Online on the expansion plans of yahoo! in china:
"US giant hopes to become the No 1 in China by buying up the competition.
This autumn 1,000 search-engine servers from the United States were installed on the 14th floor of an office tower in Beijing. They belong to Yahoo!, one of the world's two biggest search-engine companies.
The office also houses the servers of China's three biggest internet companies - Sohu.com, Sina.com and Netease - and Baidu.com, one of the leading search engines."
"Existing players are watching this invasion with unease. Cash-rich Yahoo! has a market capitalisation of US$46 billion, against about US$1 billion each for Nasdaq-listed Sohu, Sina and Netease.
Few sectors in the mainland are more open to foreign competition than the internet - with the critical exception of content. But the same censorship rules apply to all players, Chinese and foreign. This openness gives Yahoo!, with its billions, freedom to acquire its rivals to obtain a bigger market share. "
"The assault began in November last year, when Yahoo! spent US$120 million to buy 3721 Networld Software, which controls search-engine provider Beijing 3721. "
"In June, it launched the Chinese-language Yisou.com (meaning first search) - the first time it has registered a new website for its search-engine service in a country outside the US. "
"On October 19, Yahoo! announced that it had formed an alliance with 12 mainland companies - which account for more than 50 per cent of the country's internet users - to provide them with e-mail and other services. "
"China clearly is right at the top of the list of that next wave of countries that Yahoo! could and should be more aggressive about, do a better job in and provide better services in," chairman and chief executive Terry Semel said during a visit to Beijing earlier this year." Read More