Baidu Tunes Into Beyonce, Lady Gaga (BIDU, SNE, GOOG, YOKU, CYOU, DANG, DANG, AMZN, SINA)
Shares of Baidu (BIDU), China’s largest provider of Internet search services, are up 1% after the company announced it will pay Sony (SNE), Universal Music Group and Warner Music Group to feature songs by Beyonce, Lady Gaga and other popular artists. Baidu’s agreement with three of the four major record labels ends a six-year rift over piracy issues, Bloomberg News reported.
The news isn’t having much of an impact on the Chinese Internet Stocks Index, which is down 0.1%. The Index has surged 25% in the past month. The record companies will receive undisclosed fees for permitting their songs to be downloaded to Baidu’s Ting and MP3 services for free, Bloomberg noted.
Baidu had previously faced court cases in China brought by the trio of record labels over copyright infringement issues, but the companies could never make headway against the Chinese company. China, the world’s largest Internet market, is also believed to be home to the most rampant piracy of entertainment such as music and movies. Baidu rival Google (GOOG), started a Chinese music service in 2009, Bloomberg reported.
Shares of Youku.com (YOKU) are off 1% after Susquehanna initiated coverage of the stock with a “neutral” rating and a $36 price target, which is slightly above where the stock currently trades. Changyou (CYOU) and E-Commerce China Dangdang (DANG) are both lower by 2% while E-Commerce China Dangdang (DANG), China’s version of Amazon.com (AMZN) is plunging 4%. SINA (SINA) is down 1%.
Investors can track the Chinese Internet Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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