Baidu and NTT DoCoMo agree to JV

Baidu (BIDU.NASDAQ) and Japanese telecoms firm NTT DoCoMo (DCM.NYSE, NDCM.LSE, 9437.TYO) agreed to establish a joint venture in China for the distribution of mobile phone content and games, the Wall Street Journal reported. The US$125 million JV ownership will be split 80/20 between Baidu and DoCoMo, respectively. The new firm is targeting China’s growing smartphone market, which is expected to fuel a surge in mobile phone content and games in coming years. DoCoMo will provide Baidu with consulting on mobile network distribution systems in a bid to tap the China market and offset the stagnating mobile market in Japan. Baidu has been seeking to expand its business beyond internet search advertising, including a joint venture with Japan’s Rakuten and its online video venture, Qiyi.