Gasta News: China online growth explosion

China's online population, already the world's largest, has expanded to 298 million.
This marks a 41.9% increase on the previous year and is still growing fast, said the government-linked China Internet Network Information Centre.
The study also showed huge increases in the number of people in China accessing the internet through mobile phones.
The report by Cinic also noted that internet use in the countryside was increasing faster than in the cities.
At the end of 2008, the number of net users in China, which has a population of 1.3 billion, was almost the same as the entire population of the United States.
Users in the countryside surged by 60.8% year-on-year to 84.6 million, compared with much more modest growth of 35.6% in the urban areas, the report said.
The Cinic report said 117.6 million people accessed the internet using their mobile phones last year, up 133% from 2007.
Students are the main strength of mobile internet users, the study said: 43.5% of them use their mobile phones to read online news, download music, check email and perform a variety of other tasks.
3G boom
China, with 633.8 million mobile phone users, last week issued long-awaited licences for third-generation (3G) mobile phones to China Mobile, China Telecom and China Unicom.
CHINA'S INTERNET USE
Total users: 298 million
Year-on-year increase: 41.9%
Mobile net users: 117.6 million
Internet penetration: 22.6%
"With the coming of the 3G era, wireless internet will have exponential growth," Cinic said in a statement accompanying the release of its report.
3G phones enable faster data transmission and services such as watching TV, playing online games, wide-area wireless calls and web surfing.
By 2011, the three operators expect to start 3G services all over China, a move which analysts predict will spur further massive growth in mobile internet use.
As the categories of mobile internet services increase, charges have also been dropping fast.
China's internet penetration is still low at just 22.6%, leaving more room for rapid growth, Cinic said.
Constraints
The study said 234 million people surfed the internet to read or watch news by the end of 2008, a much higher estimate than recently made by the Chinese Academy of Social Sciences.
In 2007, 155 million Chinese internet users relied on the web to read news, accounting for 73.6% of the total internet population, according to Cinic.
It also said the number of Chinese bloggers hit 162 million by the end of 2008.
China's booming internet use comes despite the government's tight grip on the web.
Certain websites deemed politically sensitive are blocked; these include the BBC's Chinese language news site, Reporters Without Borders and some Hong Kong and Taiwan sites.
Access to sites offering diverse political opinions remains highly restricted, even as Chinese intellectuals and activists regularly brave the constraints to post new statements.
The government is also targeting what it calls unhealthy content on the internet. Earlier this month, it launched a campaign to get rid of vulgar and pornographic content, targeting 19 websites and search engines it said had failed to remove unsuitable material.
Authorities in Beijing, meanwhile, actively use the internet to sway opinion, put across actions and ideas, and promote top leaders.

Gasta News: Microsoft to buy Yahoo for $44.6bn (£22.4bn)

Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares.

The offer, contained in a letter to Yahoo's board, is 62% above Yahoo's closing share price on Thursday.

Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.

It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.

"We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," Microsoft chief executive Steve Ballmer said.

Chairman quit

There has not yet been any comment from Yahoo.

Its chief executive, Jerry Yang, announced on Tuesday that he intended to lay off 1,000 staff as part of a restructuring plan.

Terry Semel, who stepped down as chief executive last June, also quit as non-executive chairman on Thursday.

Microsoft said that Yahoo shareholders could choose to receive either cash or shares.

Yahoo shares have fallen 46% since reaching a year-high of $34.08 in October. They rose 54% in pre-market trading.

"Ultimately this corporate marriage was forced by the rise of Google, which has grown into a serious competitor for both Microsoft as a software company and Yahoo as an internet portal," said Tim Weber, business editor of the BBC News website.

"It is a shotgun marriage, but the person holding the shotgun is Google."

'Exorbitant premium'

According to its letter to Yahoo, Microsoft attempted to enter talks about a deal a year ago, but was rebuffed because Yahoo was confident about the "potential upside" presented by the reorganisation and operational activities that were being put in place at the time.

"A year has gone by, and the competitive situation has not improved," Microsoft's letter said.

But there has been some concern about the price that Microsoft is offering.

"To me, the premium seems exorbitant, for what is a dwindling business," said Tim Smalls from the brokerage firm Execution LLC.

"I personally don't see how the synergies of Microsoft-Yahoo is going to take on Google."

Other analysts were more enthusiastic about the offer.

"It is a fantastic offer. It is game on," said Colin Gillis from Canaccord Adams.

"This consolidates the marketplace down to Google versus Microsoft. These two companies will be going head to head."

Gasta & Baidu.com Inc

This is the latest search engine reach report from Gasta news, Baidu the robot that crawls gasta in eastern europe for results is growing at a phenomenal rate, as is the China net market.

SHANGHAI (Reuters) - Baidu.com Inc led China's search engine market in last year's fourth quarter with a 60.1 percent share, research firm Analysys International said on Friday.

Google Inc came second with a 25.9 percent share, followed by Yahoo China with 9.6 percent, it said in a statement.

Baidu's fourth-quarter market share was roughly unchanged from the previous quarter. Google Inc, meanwhile, gained 2.2 percent in the fourth quarter from the third, and has launched a mobile short message search service.

China's search engine market reached 946.6 million yuan ($131.3 million) in the fourth quarter -- almost double from a year earlier -- and was dominated by Baidu, Google and Yahoo China with a combined share of nearly 96 percent.

China had 210 million Internet users at the end of 2007, second only to the United States, and the population would become the world's largest at the beginning of this year, Xinhua news agency said this month.