Baidu Union to End Cooperation with Directory Sites
Sohu IT, 3/02/10
An industry source has revealed that Chinese online search company Baidu (Nasdaq: BIDU) has decided to terminate its partnerships with internet directory sites starting this month. Partnerships with companies that have not renewed their contracts with Baidu have already been officially terminated as of March 1, while current contracts that have not yet expired will be discontinued at the end of their terms.
The webmaster of one directory site said he had submitted an application to join the Baidu Union advertising network last October, but was denied because his site was of "inferior quality."
An industry source revealed that after terminating promotional partnerships, Baidu may choose to continue partnering with three or four directory sites that bring in more than 10 mln search queries daily, and could seek to operate these sites through outright acquisitions or stock acquisitions.
Editor's Note: A spokesperson for Baidu confirmed that the company has terminated the partnerships described above, but said that the company has no plans at present to acquire or purchase stock in any directory sites. The company's PR department said the new policy adjustment was determined by its Baidu Union development strategy, and said the number of partners and the percentage of Baidu Union members these sites accounted for was small.
For background on Baidu's directory site partnerships, see "Baidu Union Launches New Revenue Sharing Plan," MD 7/1/09 issue.
Keywords: online advertising directory Internet online search Baidu Baidu Union BIDU
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