Earlier today, Reuters reported citing three sources as saying that Chinese search engine giant Baidu is considering leaving the Nasdaq stock market and moving to an exchange closer to home to boost its valuation.
Baidu is reaching out to some trusted advisers to see how it could best be done if it were to proceed, including looking at issues around funding and any regulatory reaction, the sources said.
In an interview today, Robin Li said, "We are really concerned that the U.S. is constantly tightening controls on Chinese-language companies from the government level, and we are constantly looking internally at what can be done, including secondary listings in places like Hong Kong."
As reported by 21jingji.com, the reluctant anonymous industry insiders analyze that once Baidu chooses to privatize the exit, the amount of money required is enormous.
The privatization offer price premium is generally 30%-50%, with Baidu's current share of outstanding shares at 79.11% and the latest market capitalization of $37.5 billion, meaning $29.6 billion in outstanding shares.
At a 40 per cent premium, its privatisation delisting would require an estimated $41.533 billion. The credibility of the news is therefore low in this person's view.