What’s Google’s China business worth?
If Google follows through with its ultimatum to the Chinese government — let us run Google.cn uncensored, or we could pull out of China — Google could end up losing a decent amount of revenue this year.
In a note this evening, JPMorgan analyst Imran Khan estimates Google’s China revenue at around $600 million this year, with segment margins around 15% to 20%.
Khan also says “this could potentially have a far-reaching impact on the company’s overall long-term growth rate.”
Meanwhile, it’s great news for Baidu, China’s search leader. Which is why traders’ initial reactions to Google’s news were to send Baidu stock up about 7% after hours, and Google’s stock down 1%.
Related: Did The Chinese Government Hack Google?
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See Also:
- Did The Chinese Government Hack Google?
- Google Threatens To Pull Out Of China Over Free Speech
- Baidu Stock Up After Google Says It May Exit China