Will Facebook Go Steady with a Chinese Search Partner?

September 6, 2011

We wanted to document what we think is an important strategic rumor.

Rumors are circulating that Facebook is in talks to partner with Baidu, the Chinese leader in online search. Forbes reports on the latest in, “Facebook and Baidu – Take that Google.” One has to wonder why Facebook is looking to a search company to gain ground in China. Not to be ignored is what Baidu hopes to get out of the deal.

The first and most important factor is that today Baidu commands 75+ percent of all keyword searches in China, and they are still growing. Baidu is expected to be bigger than Yahoo on a worldwide scale within one year, with a global footprint that will rival or exceed Google’s footprint in its key markets, North America and Europe. And everything that Baidu does is just fine with China. Imagine Facebook using Baidu’s compliance technology to put them immediately into the good graces of the Chinese government.

So perhaps Facebook found a loophole around Chinese strict government standards? Will Baidu find that Facebook’s momentum is too difficult to control, even on Chinese soil? We will see, but if the rumored alliance comes to fruition, this could be a very big deal – a very big, very profitable, deal. Worth watching.

Emily Rae Aldridge, September 6, 2011

Sponsored by Pandia.com, publishers of The New Landscape of Enterprise Search

Written by Stephen E. Arnold · Filed Under Business strategy, News, Search, Social

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.