Baidu to Buy Chinese App Store For $1.9B

Chinese social networking giant Baidu has agreed to purchase “91 Wireless”, a Chinese mobile app store, for $1.9 billion, in a move to beef up app offerings in a growing mobile market.

On Tuesday, Baidu announced plans to buy 91 Wireless Websoft Ltd. from NetDragon. The deal is expected to close next month. Here is more from the press release:

Baidu and NetDragon will further negotiate and agree on the relevant terms of the Proposed Acquisition in the definitive agreements by 14 August 2013 (“the Long Stop Date”) to purchase NetDragon’s 57.41% equity interest in 91 Wireless. Before the signing of definitive agreements or the Long Stop Date (whichever is earlier), NetDragon is restricted from approaching or discussing with any third parties the sale of 91 Wireless. Baidu intends to purchase the remaining equity interests in 91 Wireless from other shareholders based on terms and conditions similar to those offered to NetDragon, provided those shareholders are willing to sell by the Long Stop Date.