Mumbai: Internet search giant Google Inc has taken a strategic stake in Shenzhen Xunlei Network Technology Ltd, a Chinese company that helps users download online videos and software. (See: Google may acquire stake in Chinese company)
The alliance would help California-based Google to take on local competitor Baidu.com Inc for market share China.
Sean Zou, chief executive officer at Shenzhen Xunlei, said Google would be "a strategic investor" in the company. He, however, declined to say how much Google had invested.
Google's share of China's market is one-third that of Beijing-based Baidu. The tie up with Xunlei would give Google access to 120 million additional customers, says the Chinese company.
Google China president Lee Kai-Fu said the popularity of online videos will help the company win more customers in a market that may be the world's biggest in two years.
While Xunlei has carried Google's toolbar on its Web site for a year, the two plan to introduce new products this year. Xunlei is also the leading video-downloading site in China.
The Chinese company offers file-sharing software that helps users download videos, music and other files. The file-sharing technology allows the sharing of materials stored on individual users' computers, rather than on a Web site or server network.
While Google bought YouTube Inc. for $1.65 billion in the US, "Xunlei is Google's YouTube in China," say market analysts. Xunlei could help Google add customers as they search for videos on the internet, they point out.
Google is buying up startups, which create new markets for film clips, and social networking to build more video content in its programmes and attract advertisers.
also see : Google
may acquire stake in Chinese company
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