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Monday, September 19, 2005

Baidu - the legal troubles continue

Baidu's main competitive advantage was its offering of free downloads. However, it was clear that the moment the company is publicly listed, especially in the US, its legal problems would accelerate. And boy, yeah, the big boys of the music industry have started to shoot pretty heavily. Its "Sony BMG Music Entertainment, Warner Music Group Corp., EMI Group Plc and Universal Music Group" that initiated the lawsuite against Baidu. And so, here goes Baidu's competitive advantage - Bloomberg writes correctly that restrictions on Baidu's services would make it more difficult for the Beijing-based company to maintain its lead in China over Google Inc.

Following the news, Baidu's shares plunged 28% on September 14. Here we go with the end of a dream.

(By Asia Business Consulting)