Google took over the search market after pioneers such as Lycos failed to keep up with changing trends. Baidu is seen as China’s answer to Google. But its slowness to adapt means it risks becoming a tech bygone like Lycos. A $US3.6 billion ($4.9 billion) purchase of a live-streaming platform represents a counterproductive attempt to avert that comparison.
Growth is elusive in China’s saturated market. A 1 per cent increase in Baidu’s third-quarter sales was enough to please markets on Tuesday. Longer term, Baidu faces falling advertising sales – its main source of revenue.
