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Just as Google reorganized under new parent firm Alphabet ( GOOGL ), Chinese search leader Baidu ( BIDU ) is planning to break off its search operations into a separate company, according to a report Thursday. Baidu plans several changes to its business structure, including establishment of a subsidiary that will house its online search services, said Marbridge Consulting, citing a release via Baidu’s official account on Tencent Holdings ‘ ( TCEHY ) WeChat mobile messaging platform. Baidu will establish “Baidu Search Company,” an entity comprised of the Search Services Group, the Mobile Services Group and the Nuomi.com team, the report said. Baidu acquired group-buying website Nuomi.com in 2014 as part of its online-to-offline, or O2O, strategy. Xiang Hailong, Baidu senior vice president and Search Services Group general manager, will head the new company and report directly to Baidu CEO Robin Li, Marbridge Consulting said. “Following the restructuring, Li will focus more of his time and energies on Internet finance, driverless cars, artificial intelligence and similarly innovative areas of the business, along with related strategic priorities,” Marbridge said. Like Alphabet, Baidu is investing to develop self-driving cars and other technology not related to its core search operations. In November, Baidu announced it had submitted an application for a direct-banking license in partnership with China’s Citic Bank, and for an online insurance license in partnership with Allianz and Hillhouse Capital. To continue its growth, Baidu should follow in the footsteps of Alphabet-owned Google “and split its non-core businesses from its core search and ads business. If they do this, Baidu stock would likely receive a big boost, leaving them with the cash to make a foray into the U.S. market,” Taiwan-based Sephi Shapira, CEO of mobile advertising platform MassiveImpact, told IBD via email in February. The company’s revenue guidance for Q1 fell short of analyst expectations. Baidu stock was up more than 1% in midday trading in the stock market today , near 196, ts highest price since late December. Baidu stock has nearly doubled since August but is down 9% in the past 12 months. Shares broke out of a cup-with-handle base at 189.90 on March 29. Other leading China Internet stocks were little changed Thursday, with Vipshop Holdings ( VIPS ), Alibaba Group ( BABA ) and NetEase ( NTES ) all down a fraction, and JD.com ( JD ) up a fraction. On Monday, Baidu confirmed that it’s seeking a $1 billion loan. A Baidu spokeswoman said the company aims to borrow the funds through a five-year syndicated facility for general corporate purposes, according to Bloomberg. Scalper1 News
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