Baidu misses revenue expectations

Shares of Baidu (BIDU.NASDAQ) fell more than 10% on Tuesday after the company announced that it expects to report revenue of US$847-866 million for the first quarter, below analyst projections, Bloomberg reported. Baidu has been looking to target larger advertisers with its search-engine keywords to counteract China’s cooling economic growth. It has also been expanding its smartphone services to better compete with Tencent (0700.HKG) and Google (GOOG.NASDAQ). Separately, Baidu, Tencent and Sohu (SOHU.NASDAQ) announced an alliance to collaborate on licensing and broadcasting online video content in China. The partnership seems aimed at countering Youku’s (YOKU.NYSE), purchase of its largest rival, Tudou Holdings, last month. The combined Youku-Tudou firm would have accounted for over a third of China’s internet video advertising revenue in the fourth quarter of 2011.