Who Will Benefit From Google’s Withdrawal?

On the early morning of March 23 in Beijing, Google officially announced to reject the Chinese government’s requirement to censor Google’s search results, and transfer its search services to Hong Kong. Google spokesman said that the corporation will not withdraw from China totally; they will continue to provide Internet users in China with uncensored services Google Maps, the Mainland users using Google search , Google News and Google Images services will be automatically guided to uncensored Google Hong Kong Page, and Google’s sales and R&D business will be reserved. On Google’s withdrawal, who will be the major beneficiaries? Baidu It is firmly believed that Baidu , the world's largest Chinese search engine, will become the biggest beneficiary. A report quoted the comments of Eric Wen, the analyst of South Korea's Mirae Asset Financial Group, Baidu has a near monopoly in China, he put up Baidu’s stock rating from "hold" to "buy" this week, one reason was that he estimated that Baidu may receive 60% of previous income of Google.cn. Bing Besides Baidu, Microsoft-owned Bing will be another big beneficiary. As a spectator, the new search engine Bing sat idle and enjoyed the fruits of others' labor. It is certainly one of the potential beneficiaries in this case. When Google issued the statement of quitting the Chinese market , Microsoft executives unified a high-profile claim that Microsoft would increase investment in the Chinese market. As Microsoft's CEO, Ballmer has repeatedly expressed determination to go beyond Google in China. Sohu and Tencent In addition, Sohu and Tencent are actively trying to employ staff of Google.cn. They hold a few market shares in search engine, but after Google’s announcement of withdrawing, they both input a lot of funds and manpower in this field, an obvious indication to compete with Baidu. They also started to take advantage of this rather controversial event. However, Google is thought to be the biggest loser. After it posted the statement that Google would no longer censor Google.cn on the website on January 12, Google’s stock value has dropped from USD 595 to USD567, with the market value about USD 11.6 billion evaporating.

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