IPO by China Search Firm Baidu Called Likely to be Success
From Herald Tribune: IPO by China search firm called likely to be success
"A year after Google's momentous stock debut comes Baidu.com, China's largest search engine. No one wants to predict that Baidu.com's initial public offering, scheduled for next week, will follow the same trajectory as Google, whose shares have more than tripled since it went public last August. But analysts say Baidu's IPO has what it takes to do well."
""This has all the potential to be one of the best deals this year," said Sal Morreale, who tracks IPOs for Cantor Fitzgerald in Los Angeles."
"According to iResearch, the number of Internet search users in China is projected to grow at a compound annual growth rate of 27.5 percent from 2005 to 2007."
"However, Baidu, formed in 2000, is at an earlier stage in its development than Google's was when it went public, Bard said. Google also has the added advantage of being a global search engine; Baidu is focused on China, he said."
"Another downside to providing search-engine services in China is the Chinese government, which imposes content restrictions that Google and Yahoo do not face in the United States. Baidu was forced to close for a week in 2002 and pay a fine after its search results contained content that the authorities considered "socially harmful.""
China Net Investor: "Google Inc. holds a 2.6 pct stake in Baidu. There are rumors that Google may be looking to buy Baidu. Google CEO Eric Schmidt was in Beijing recently to meet with Baidu officials. (Google Interest In Baidu Buyout?)