Google buys stake in China's Xunlei

Tweet

Google, which runs the world’s largest search engine, has bought a stake in China’s Xunlei Network Technology, which provides file-sharing and other services, a Google spokesperson said on Thursday. Terms of the deal were not disclosed by Google, although the China Daily earlier reported that Xunlei planned to announce the details soon. Google is reportedly partnering Ceyuan Ventures, a Shanghai-based venture capital firm for the investment, the newspaper said. More than 80 million users have installed Shenzhen-based Xunlei’s software and its Web sites attract more than 50 million visitors a day, the China Daily said. “I think it’s a significant step. In China, the local companies have a homefield advantage,” said Paul Keung, analyst with CIBC World Markets, who rates Google “outperform.” CIBC said it makes a market in the securities of Google and has performed investment banking services for it. 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 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.