Yahoo, Google bidding for 3721?
Plus: RealNetworks inks AT&T Wireless; AT&T sues EBay
By Bambi Francisco, CBS.MarketWatch.com
Last Update: 3:50 PM ET Nov. 20, 2003
SAN FRANCISCO (CBS.MW) -- China may one day replace the U.S. as the top importer of Japanese electronics. But China's biggest import comes from the U.S.: A consumption mindset.
To that end, the Chinese represent a growing consumer population that U.S. Internet companies can aggregate onto one Web site and make money off of.
Swirling about in the Chinese papers are rumors that Yahoo (YHOO: news, chart, profile) is considering purchasing 3721, a local Chinese directory that translates Chinese characters into English domain names -- sort of a Chinese/English Yellow Pages.
A deal is expected to be announced as early as Friday, a source familiar with the situation said.
John Marcom, Yahoo's senior vice president of international operations, and 3721 representatives would not comment.
But one person familiar with the goings on in China says there is truth to the acquisition discussions.
"I know there are discussions going on about 3721 being acquired," said Hurst Lin, co-founder of Sina (SINA: news, chart, profile), one of the leading Chinese portals with a $1.6 billion market valuation.
"There are a lot of rumors about different suitors, like Sohu (SOHU: news, chart, profile), Yahoo and Google," said Lin, who said Sina would not be interested in 3721 because both companies have an overlap in users.
Lin also said that many Chinese Internet companies are trying to be bought.
According to Pacific Epoch, a research outfit that tracks news about China, Yahoo offered $120 million in cash and stock for 3721.
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