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Qihoo 360 Tech Ups Stake In Smartphone Joint Venture

By noreply@blogger.com (InfoseekChina)

(Investor’s Business Daily) Chinese security software and Web search firm Qihoo 360 Technology announced Tuesday that it will boost its ownership stake in a joint venture established last month with smartphone maker Coolpad Group.

Qihoo 360 will increase its ownership stake in the duo’s Coolpad E-Commerce joint venture to 49.5% by purchasing 4.5% of shares in the joint venture from Coolpad for $45 million.

“We are very excited to increase our ownership position in the Coolpad joint venture, which underscores our increased confidence in the future of this joint venture,” Qihoo 360 CEO Hongyi Zhou said in a statement. “The two parties have worked closely together since earlier this year, and we are pleased with the progress we have made.

“We believe the Coolpad joint venture is a key element to our long-term mobile strategy and will help us build a stronger mobile ecosystem in the future.”

Coolpad Group provides a mobile data platform and value-added business operations in China. It makes the Coolpad smartphone and Dazen Internet smartphone, sold in China.
Qihoo 360 stock was down a fraction in midday trading on the stock market today, near 55. Qihoo 360 is down 10% this year and down 56% from its all-time high of 124.42, which dates back to March 2014.

Qihoo 360’s fortified stake in its smartphone joint venture follows last week’s announcement that it had entered the smart home market through a partnership withHuayuan Group, a China real estate developer.

Products planned through that alliance include smart surveillance cameras and smartwatches.

Total smartphone users of Qihoo’s flagship mobile security product reached a record 778 million in March, up 45% from March 2014, the company said.

The first Qihoo 360-Huayuan smart home technology rollout is expected to be completed by year-end in south-central China and eventually roll out to all of Huayuan’s developments nationally.

Last week, Qihoo 360 beat Wall Street expectations for Q1 earnings and revenue, but its guidance lagged, and Qihoo stock fell.

The No. 2 search provider in China behind Baidu, Qihoo has struggled to transition to mobile.

Another rival is No. 3 search engine Sogou, owned by Sohu. Web giant Tencent Holdings owns a big stake in Sogou, while Tencent’s rival as the largest Internet company in China, Alibaba Group, owns a mobile search engine called Shenma.
Source: Investor’s Business Daily by Michelle Chandler

Source:: Qihoo 360 Tech Ups Stake In Smartphone Joint Venture

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