GO
Loading...

Google Eyes Stake in China Online Firm

The world's top search engine Google will buy a stake in China's Xunlei Network Technology, local media said Thursday.

"We will announce the details of the deal tomorrow," Xunlei spokesman Jackson Zhang said on Wednesday, according to the China Daily.

Google is reportedly partnering Ceyuan Ventures, a Shanghai-based venture capital firm for the investment, the newspaper said.

Shenzhen-based Xunlei provides a person-to-person file sharing network and other downloading services. More than 80 million users have installed its software and its websites attract more than 50 million visitors a day, the China Daily said.

Baidu.com controlled nearly 57% of China's search-engine market at the end of June, according to Analysis International, a Beijing-based IT research company.

Sources have said both Baidu and Google, which has only 16% of the China market, are exploring options to expand their online video services in the world's fourth-largest economy.

The moves come after Google closed its $1.65 billion acquisition of top online video-sharing site YouTube. Baidu also launched its own Chinese-language video Web channel on a trial basis a few months ago.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • CNBC's Morgan Brennan asks NFL Commissioner Roger Goodell about Procter and Gamble pulling its partnership with the NFL.

  • U.S. markets soared to new highs at news of the Fed's decision to keep interest rates low for a bit longer, but what happens when the Fed eventually makes its move? Deutsche Bank Chief US Equity Strategist David Bianco and Washington Post Financial Writer Ylan Mui discuss the implications.

  • This Ivy educated lawyer turned tech entrepreneur invested early in Facebook, LinkedIn and Yelp but says college can wait and he'll pay people to drop out. Billionaire venture capitalist and PayPal Co-Founder Peter Thiel gives tips on how to launch a successful start-up and discusses his new book, "Zero to One."