Another Chinese Job-advertising company Being Acquired

September 21, 2006 at 4:15 am (China, Companies, Internet)

Zhaopin.com, one of the three biggest online job-advertising companies in China, is going to sell a 25 percent stake to a counterpart in Australia.

Among China’s biggest three, which control about 70 percent of China’s online job ad market, 51job sold about 15 percent stake to a Japanese company before it was listed in Nadaq, and ChinaHR.com was 45 percent owned by America’s biggest online job website Monster. Three companies from three continents own three of China’s biggest websites.

It’s no secret that there are more Chinese internet companies eager to be acquired. Most start-ups in China have no idea on making money. They are still struggling to gain traffic, and probably few are considering a durable business model. Building a website, attracting a large audience, then selling the site to someone else, this is the best business model for most of them.

They are not alone. Howard Rheingold, a long time silicon valley watcher and the creator of the concept of “virtual community”, said Web 2.0 is a bubble if most silicon valley companies are only considering to be taken over by Google and Yahoo. Google and Yahoo can only buy so much companies. The rest of them will die if they keep burning cash rather than making money.

 

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