The name Baidu was derived from the title of a poem written 800 years ago. It means "search for the ideal." (Photo : Reuters)
Baidu has plans of investing $100 million in the Lenono smart tech subsidiary Shenqi Gongchang. The company is also set on launching its first-ever mobile phone in the second half of this year.
Baidu and Lenovo cooperating is not the first setup of that sort. There were already several partnerships between Internet giants and phone manufacturers. One example would be Alibaba and Meizu. Another would be the partnership between Qihoo 360 and Coolpad.
Once negotiations are concluded successfully, Baidu might spend a total of $100 million to acquire 10 percent of the company's shares. It is expected that the company's market cap will go beyond the $1-billion mark.
Baidu's first-ever phone model could be expected this October, and the phone would have its own distinct interface unlike those existing in the market from other smartphone brands.
Former Lenovo Senior Vice President Chen Xudong would lead the company as its CEO. For the next two years, the VP said that the company has some grand plans. The company's phones and mobile Internet business would be the core of its operations.
The company also plans to play a huge role in Lenovo's smart ecosystem. It may even release its own range of wearable devices such as what smartphone giants Samsung and Apple now have.
According to tech analysts, Baidu's move can be considered a defensive one, in light of the significant efforts of Xiaomi and Tencent to dominate the market by working with Internet technology companies. Xiaomi also has its own distinct user interface called the MIUI. Tencent, on the other hand, had already made the announcement of developing its own firmware. Baidu must have seen that it is time to follow suit.
