Rhys Blakely
Download 'Too Hot', an exclusive Specials track from iTunes
Google has taken a stake in Tianya.cn, the Chinese social networking site, broadening its presence in the world’s second-largest online market.
A spokesman for the search company confirmed that Google has invested in Tianya.cn, but declined to give further details. Reports in China suggested the holding could be as much as 60 per cent.
Google has struggled to break into the Chinese market, despite changing its name in the territory to “Gu Ge” and controversially agreeing to toe Beijing’s line on online censorship. In the search market Baidu.com, the domestic leader with about 60 per cent of the market, has nearly three times Google's number of users.
Other Western internet companies have also struggled to crack China.
The world’s largest online auction house, eBay, is being crushed there by Taobao, the domestic auction site owned by Alibaba, the company into which Yahoo! poured its struggling China business two years ago to avoid going it alone on the mainland.
However, Google has met with success in social networking in other territories. Orkut, which Google owns, is the most popular social network in Brazil and India.
The company has also indicated it is willing to play a long game to cash in on the huge potential of China’s online consumer market.
“China is a nation with a 5,000-year history,” Eric Schmidt, the chief executive, said recently. “That could indicate the duration for our patience.”
Last month, Xing Ming, president of Hainan Tianya Online Networking Technology, which runs the site, suggested that the group is pondering a float on the Chinese stock market, adding that the company had been profitable for two years.
According to iResearch, the Shanghai-based data provider, Tianya.cn attracted about 24 million users in April, making it the third most popular social network site in China.
In 2005, Lenovo, the computer maker, reportedly made a $2.5 million investment in Tianya.cn. Other investors are said to include Sequoia Capital, one of Google's own early backers.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.