Baidu reduced the amount of financing, and Google's acquisition became more difficult.

Baidu submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) on the early morning of March 13, Beijing time. According to the content disclosed in the prospectus, Baidu plans to issue A Class A common stock worth $80 million, which is listed on Nasdaq for short as "BIDU". The listed company is named Baidu.com, Inc ., registered in the British Cayman Islands.
After submitting the prospectus for the first time, according to international practice, Baidu should submit the revised prospectus for the second time a week later. In the next two weeks, it will provide a road show to investors in the United States, after that, the company will officially go public (IPO ). Therefore, if everything goes well, Baidu's official IPO should be held on August 1, early August.
Previously, overseas media reported that Baidu would trade 25% of its shares, with a financing amount of $0.2 billion. We can see that this time Baidu reduced the number of initial issuance shares and the amount of financing, and its market value was not changed. The reason for this change may be that investors are optimistic about the prospect of a high IPO rate, because many overseas analysts believe that Baidu is likely to follow Google's footsteps.
In last August, the issue price of Google's IPO was $85, which has soared. It has already exceeded $300 for many times and its market value has exceeded Times Warner, the world's largest entertainment company. In the face of Google's outstanding stock market performance, Baidu is easy to make a conservative posture in the first round of financing scale, in order to carry out the second and third listing financing at a high level.
According to the Baidu prospectus, Google actually invested $4.99 million in Baidu in the last round of private equity, earning only 2.6% of the shares. This information indirectly denies claims by many media that Google has invested $10 million in Baidu, with a 4% stake.
According to statistics from Alibaba, a market research company, in first quarter of 2005, Baidu's domestic search market share was 44.7%, and Google ranked second in 30.1%. According to a report released by CCID, in economically developed regions in China, business owners recognize Baidu's spot price ranking service as 50.14%, and Google's rate as 24.13%.
Google CEO Eric Schmidt made it clear at the beginning of this month that Google will enter the Chinese market this year, but the specific form depends on the results of negotiations with Baidu. Schmidt said that Google currently has two options: one is to simply hold shares of Baidu, and the other is to cooperate closely with Baidu to increase its holdings of more shares. Obviously, Google's most desired result is the full acquisition of Baidu, turning Baidu into a subsidiary of Google in China. However, since Baidu founder Li Yanhong has a higher weight on Baidu than the capital market, and Baidu insisted that independent development is Baidu's best way out in its statement, it will be very difficult for Google to buy Baidu, especially after its launch.
From this, it is not hard to infer that Baidu has changed its original intention to reduce the proportion of financing and public offerings. One of the reasons may be to prevent companies like Google from acquiring themselves in the stock market.