Baidu pays $1.9b for VC-backed 91 Wireless

According to a filing, NetDragon has agreed to sell its 57.41% stake in the company to Baidu for $1.09 billion with Baidu acquiring the remaining share from early VC backers under the same terms. 

According to AVCJ Research, IDG Capital Partners invested $9 million for a 13.71% stake in 91 Wireless in August 2011. Four months later, it received $20 million from DT Capital Partners, Taiwan-based iD TechVentures and Vertex Venture, a wholly-owned subsidiary of Temasek Holdings.

Of the capital committed, Vertex picked up 7.14% for $10 million. DT Capital and iD TechVentures each put $5 million for $3.75%. Hong Kong telecom provider PCCW and David Wei, the former chief executive of Alibaba.com, are also said to be among the shareholders.

Hong Kong-listed NetDragon subscribed to 4 million new preferred shares of 91 Wireless for $5 million last year, allowing the firm to increase its shareholding from 59.2% to 62.53%.

Eastablished in 2007, 91 Wireless is one of the largest third-party app distribution platforms in China. It operates smartphone app stores 91 Assistant and HiMarket, community websites 91 Launcher and 91 Panda Reader, as well as other products for smartphone users.

Two months ago, Baidu agreed to pay $370 million for PPS' online video business, paving an exit for Ceyuan Ventures, Qiming Venture Partners and Vision Knight Capital.

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• Topics
• Greater China
• Technology
• Exits
• Venture
• China
• IDG Capital Partners
• TMT
• Exit
• Venture
• Vertex Management (II)