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Who's the Winner in China's Internet Development
Sohu.com has lately singed the final purchasing agreement with ChinaRen.com in Hong Kong. After the merging, Sohu.com will have more than 7.8 million registered users and 44 million page views per day, turning out to be the largest portal website in China. This is the first purchase, the largest of its kind since the four portal websites in China were listed on Nasdaq.
Sources say that the acquisition will speed up the integration of China's Internet industry, formally sounding the prelude of the merging fervor. ChinaRen.com, founded in 1999, is known for its virtual community, which is able to make up for what Sohu lacks. Among the most influential websites released by CNNIC in the first half of this year, ChinaRen ranked the 9th place while Sohu, overtaking the Netease, ranks the 2nd.
For this acquisition, Sohu has used its 4.4 million stocks on Nasdaq, which is equivalent to 300 million US dollars.
Sohu.com said that the complete content and search engine provided by Sohu enjoys an advantage in service, while ChinaRen. Com. focuses on network service for the community. The combination of the two helps the merged company to develop into a group of users complementarily appealing to each other. Moreover, this most numerous and loyal group of users in the Internet market of China will further help Sohu to penetrate into all key markets. After the merging, the company will availing itself of the advantages in the network service, in community and management and Internet technology, provide the most advanced and inland-orientated Internet service.
All these come up to indicate that China's Internet industry is now filled with all sorts of variants. Nevertheless, the curtain has been raised and it looks hardly avoidable to be engaged in a fight for life and death. Zhang Chaoyang, CEO of Sohu, said " China's Internet industry has already stepped into an actual period of competition, a thrust and parry of prowess and strength".
In the face of Sohu's great expansion who worries most? The rival competitors: Sina, Netease and China.com. Mao Daolin, Chief operational officer of Sina said Sina finds its greatest advantage in its adaptation to the changing circumstances. Should Sohu merge with Netease, we are likely to find a website enjoying the 4th place our partner to make ourselves consolidated.
However, what is unexpected is that Sohu acquired ChinaRen.com. Although we don't know weather Sina is negotiating or will negotiate with whichever website, the pace, however, will for sure be hastened, or it may gain acquisition when it becomes adapted to the changing circumstances. Analysis says what is plausible to happen is perhaps the acquisition of the 8848.net, a well-paired combination.
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