A new joint venture has been announced by the Japanese operator NTT Docomo and the Chinese search engine provider Baidu. The venture will encompass both the development and distribution of mobile content in China, and will reportedly focus on Japanese games, comics and animation.
Docomo has stated that its investment in the venture – of which it holds 20% - is worth around JPY2 billion (US$24.6 million). Although Baidu has not revealed its investment, it holds the remaining 80% of the venture, and to match this stake the firm’s investment would need to be around JPY8 billion.
The development supports the stated aims of both parties – Baidu is seeking means of generating revenue outside of search engine advertising, while Docomo is seeking to strengthen its brand outside of Japan. In addition to this deal with Baidu, the Japanese market leader has acquired a 26.5% stake in the mobile arm of Tata Teleservices, and has invested around JPY263 billion in the Indian firm.
