Baidu Inc. (Nasdaq: BIDU) is buying a majority stake in Nuomi Holdings Inc. for $160 million.
Nuomi, a subsidiary of Renren Inc. (NYSE: RENN), a social networking platform in China similar to Facebook, provides group-buying and local information services. Group buying allows companies to offer products and services at reduced prices.
Baidu, a Chinese-language Internet search provider, is buying a 59 percent stake.
"We believe the group-buying business has tremendous potential in China and will continue to benefit from the rapid growth of the mobile Internet. Baidu's strategic investment will further enhance Nuomi's position in this sector," says Joseph Chen, CEO of Renren.
“Nuomi's group-buying platform and high-quality local information clearly complement Baidu's existing mobile LBS [location-based services] and maps offering,” says Jennifer Li, Baidu’s chief financial officer.
Also in August, Beijing-based Baidu agreed to buy application store 91 Wireless from NetDragon Websoft Inc. for $1.85 billion, as part of the company’s diversification strategy. In May, the company bought the online video business of PPS, a technology company, for $370 million.