It s an inevitable evolution given the unfilled promise of China s online advertising market. But while marriage with a rich partner may be the only way for the online firms to survive, the three potential brides vary in their attractiveness, analysts say. In the end, some may be left standing at the altar.
Rumors abound and there is no doubt that mergers and acquisitions are going to happen.
International Data Corp. In the early days of Internet euphoria i.e. last year industry watchers were swooning with the potential of China s online advertising market and its ability to reach China s fast-growing Internet community. Then the bubble burst. As Internet companies lost their sheen, online advertising also became less glossy. And that s on the optimistic side. One hope for survival is to merge with, or be acquired by, a larger company, and the Chinese press is filled with rumors of such possibilities, some lifted from gossip in online chat rooms, industry sources say.