Baidu to buy mobile apps store 91 Wireless Websoft for $1.9 bn
16 Jul 2013
Baidu, China's biggest Internet search engine company, today struck a deal to buy 91 Wireless Websoft Ltd, a local distributor of smartphone apps from NetDragon Websoft Inc, for $1.9 billion.
The move comes two months after Beijing-based Baidu acquired internet video service PPS Net for $370 million.
Nasdaq-listed Baidu will buy 57.4 per cent of 91 Wireless Websoft from Chinese games developer NetDragon for $1.09 billion and the remaining 42.6 per cent from other shareholders for around $800 million.
Baidu said that the offer is preliminary, but both companies have until 14 August to agree on final terms for the deal.
Founded in 2007, 91 Wireless develops and operates two leading smartphone app distribution platforms in China, 91 Assistant and HiMarket and community websites, 91 Launcher, 91 Panda Reader, as well as other popular products for smartphone users.
With over 10 billion apps have been downloaded through the 91 Smartphone Apps Marketplaces, 91 Wireless is China's biggest 3rd party app distribution platform by both active users and accumulated downloads, according to the iResearch 2011-2012 report, compiled by independent research firm iResearch.
Established in 1999, NetDragon is a vertically integrated developer & operator of MMORPGs and a cutting-edge R&D powerhouse. It launched its first self-made online game Monster & Me in 2002, followed by multiple titles including Eudemons Online, Conquer Online and Heroes of Might & Magic Online.
It is also China's pioneer in overseas expansion, directly operating titles in overseas markets since 2003 in English, Spanish, Arabic and other languages.
NetDragon today informed the Hong Kong Stock Exchange that it has put on hold its plan of seeking a potential spinoff of the 91 Wireless on Hong Kong's secondary board until a sale agreement is signed with Baidu.
