Rumours rife over Google stake in Chinese ISP

Rumours rife over Google stake in Chinese ISP


Search giant may be considering taking a chunk of Sina.com

Google is considering taking a five per cent stake in a major Chinese internet company, a Chinese newspaper claimed today, citing unamed sources.

Negotiations to buy the stake in the extremely popular Sina.com site, which operates a portal, news, games and other services, have been ongoing for some time, the Beijing News said.

Sina.com is already in the news following unconfirmed reports that Hong Kong-based wireless internet service provider Tom.com has agreed to purchase the 20 per cent Sina share held by Chinese online gaming company, Shanda Interactive Entertainment Ltd.

Google has seen its share of the Chinese search market grow to around 30 per cent, but still lags behind China-based rival Baidu.

The cash-rich US company took a three per cent stake in Baidu early last year. Chinese regulators are typically reluctant to approve share deals that might give foreign companies an influential stake in local internet and telecoms companies.