An executive at China‘s biggest search engine Baidu says its top-line and bottom-line growth will slow in 2011, reports Reuters. Why? It’s already so huge. Shares in the company dropped 6% on the news.
Baidu also says they plan to accelerate their growth through acquisitions. Baidu has made forays into commerce lately with a deal with Rakuten, Japan’s biggest online retailer, and an investment in TG.com.cn, a Chinese e-commerce website. It’s also expanded in online video and other fields.
Interesting info: its traffic acquisition costs represent about 10% of its revenue. We wonder what they’re spending it on.
In any case, it seems Baidu’s trajectory is imitating Google‘s every step of the way: a massive but maturing search business, and difficulties discovering a big new growth engine.
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