Uber will receive cash and non-cash assets, including Baidu's online resources as owner of China's biggest Internet search engine, sources added. The investment may be worth as much as $600 million, China National Radio reported earlier, according to Bloomberg.
Baidu's investment gives the search company a slice of the market in China that has been dominated by start ups backed by Alibaba Group Holding (BABA) and Tencent Holdings (TCEHY) , the nation's biggest Internet companies. San Francisco-based Uber this month completed a round of funding that valued the car-booking application at $40 billion, Bloomberg noted.
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Shares of Baidu are down 0.62% to $227.80 in pre-market trade.
TheStreet Ratings team rates BAIDU INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BAIDU INC (BIDU) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."