China Internet Giant Buys Stake in Search Engine

Another big investment has deepened a struggle for primacy among China’s online giants. Tencent Holdings, the biggest Internet company in China, said that it had invested $448 million for a 36.5 percent stake in Sogou, a search engine.

The move helps Tencent, which provides popular online games, social networking and Internet messaging services, keep pace with its main rivals, Alibaba and Baidu, which have been moving to challenge Tencent with deals of their own. Sogou, which is owned by a company called Sohu, is only the third-largest search engine in China, with a 10 percent share of searches in August, according to CNZZ, a research firm. Baidu led the way, with 63 percent, followed by Qihoo 360, with 18 percent. Still, Sogou was courted by Tencent, Qihoo and Alibaba. The rivalry between Alibaba and Tencent has been fierce, with each company moving in recent months to expand its range of Internet services in an effort to outflank the other.