Baidu feeling global crunch

Search engine lowers 4th qtr. revenue target

Chinese Internet giant Baidu is the latest company to show that the financial tsunami is having truly global effects on media companies.

The Nasdaq-listed search engine revised down its fourth-quarter revenue forecasts from a previous range of 1.05 billion yuan ($155 million) to a 15% lower target of $131 million.

“The economic slowdown in China is having a greater than expected impact on online marketing particularly in machinery and franchising,” company said in a statement.

But chairman and CEO Robin Li forecast a return of business after a period of shakeout.

“As online marketing customers adjust to the current difficult economic environment, we believe they will increasingly realize the value of paid Internet search as a very powerful performance-based model,” Li said.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety

Loading