Chinese web giant Baidu has agreed to purchase a majority stake in struggling group-buying site Nuomi, Bloomberg reports.
Nuomi was previously controlled by Renren, which had been desperately trying to offload the site which only has a 5.9 percent market share and has been haemorrhaging money.
Baidu will pay 980 million yuan in exchange for a 59 percent stake in Nuomi, valuing the company at around 1.6 billion yuan. The deal is practically chump change for Baidu, which raked in 2.64 billion yuan in net profits this quarter.
It isn’t clear whether Baidu will pressure Nuomi to merge with the company’s own similar service Baidu Group Buy.
‘China’s Google’ has been throwing its weight around financially in recent months as it attempts to gain a greater foothold in the mobile market. This month Baidu closed an 11.6 billion yuan deal to purchase 91 Wireless Websoft, a major Chinese smartphone app distributor. In May, the company bought popular video service PPS in a move widely seen as a challenge to industry leader Youku Tudou.
[Image credit: Tech in Asia]