If Google does pull out of China, the beneficiary would be Baidu.com (BIDU) which processes more than 60% of all search requests in China. Google is a distant second.
The latest report from Analysys International said Baidu had 58.4% of search revenue in the fourth quarter in China, while Google had 35.6%.
"There's no other competitor, so if Google pulls out, Baidu is left by itself," Erwin Sanft, an analyst at BNP Paribas in Hong Kong, told Bloomberg. "If they pull out of China, it's very hard to really get back in the market and still have a similar presence."
Google launched its Chinese Web site in January 2006.Google's announcement comes a day day after Baidu's homepage was attacked by hackers, with some reports saying the group responsible for the attack was the one that took down Twitter last month. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV