Baidu inc. (NASDAQ:BIDU) is a Chinese internet search engine service that provides several services to find relevant information such as web pages, images, and documents. What distinguishes Baidu from other search engines is that it gives the opportunity for people to search for information using Chinese language terms in addition to various languages associated with international products and services. Baidu, Inc. used to be known as Baidu.com. The company changed its name to Baidu, Inc. in December 2008.
Baidu CEO Robin Li recently announced plans to restructure the company into three main divisions. The mobile cloud division and LBS (Location Based services) Division will merge into the Mobile Services Business group, the new business and user consumption business units will integrate into an emerging business group with the primary task of finding new markets, and the third group will merge from mobile cloud’s technical search infrastructure and mobile search union into the search business group.
According to Pingwest, one of Baidu’s publicists responded: “Through these adjustments, Baidu will further focus on the business; the company will greatly enhance the efficiency of the mobile Internet era and will provide users with better service.
Baidu also commented, that “after the realignment the search company will achieve efficiency in products research and development, operation and sales; bring out the synergy effects among its divisions. It could also help Baidu to be more innovative in new market sectors.”
With the restructuring, Baidu is making an effort again to differentiate itself from other Chinese Internet giants like Alibaba and Tencent.
Following the restructuring announcement, Brean Capital reiterated a Buy rating on BIDU stock with a Price Target of $275.