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BizReport : Internet : January 06, 2007

Google Goes Gu Ge in China

Google, the world's largest search engine, has invested in China's Shenzhen-based video-download portal Xunlei Network Technology.

by Helen Leggatt

The move, which will boost Google's user base in China, comes after their $1.65 billion acquisition of top online video-sharing site YouTube.

Xunlei offers a peer-to-peer video-download service to internet users. The deal will see Google in a better position to challenge Baidu, a Beijing-based competitor, which currently boasts 57 percent of China’s search market. Google currently only has 16 percent.

"Under the terms of the investment, Xunlei users will be able to search the site’s multi-media content using Google’s engine, while Google will gain access to a slice of the lucrative Chinese search market, where it attracts only 16 per cent of search queries", states The Times Online.

The deal will give Google access to around 120 million customers who use the Xunlei site. More than 80 million users have installed Xunlei’s software and its Web sites attract more than 50 million visitors a day.

In 2006, Google unveiled a Chinese-language brand name, "Gu Ge", meaning "Valley Song".

Tags: China, download, Google, search marketing

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