If Google Closes Shop in China, Microsoft Should Pounce on Baidu


Google's (GOOG) problems in China have been well-publicized in recent years. The world's most populous country and its own Baidu.com search engine have managed to stave off Google to a minority market share. At the same time, the Chinese government has been no friend of the world's leading search engine, requesting censored results in comparison to Google's "all information is free" stance. So, Google stands prepared to leave China for good.

When Google does leave China, it will leave Baidu (BIDU) in charge of that country's search services to a large degree. Does this open the door to one of Google's competitors entering the Chinese search market in an attempt to take on Baidu? Would Microsoft (MSFT) have the gall to do this? The company certainly has the money, but it's not making money in search at the moment (who knows if it ever will), and it had to join up with Yahoo! (YHOO) just to compete with the likes of Google outside of China.

Chinese authorities will not be changing their internet censorship rules and Google apparently wants no part of that. Would Microsoft want to make a large push into the Chinese market with its Bing search engine, even if that means censored results to comply with the government's request? Since Microsoft is a member of the Global Network Initiative (GNI), it seems implausible for the world's largest software company to try and actually make a go of the Chinese internet search marketplace. Stranger things have happened, and MSFT investors may not want the company to do search if it can't make the needed gains. Thoughts?

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Last updated: February 10, 2012: 11:32 AM

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