US Internet giant Yahoo agreed to pay up to US$120 million over two years to acquire Hong Kong-based software development company 3721 Network Software, the parent of Beijing-based 3721.
The deal is expected to conclude in the first quarter of next year.
Beijing 3721, a real name search engine service and Chinese e-mail provider in China, claims that 90 percent of Chinese Internet users use its service.
Beijing 3721 had revenues of RMB 140 million (US$17 million) and profits of RMB 40 million (US$4.8 million) in 2002. The company forecasted revenues would reach RMB 200 million (US$24 million) in 2003.