14 DAY TRIAL // The web is abuzz with a very juicy rumor concerning the hottest internet company of the moment, Facebook, and the hottest online market of the moment, China. According to several Chinese reports, Facebook has negotiated a deal with Baidu to set up a joint-venture social network in China.
It wouldn't be the first time rumors like this surfaced, they go back to 2007, but moving into China probably makes more sense now than ever.
There have been some links between Facebook and Baidu, Zuckerberg met with Baidu CEO Robin Li during his visit to China in December.
At the time, Zuckerberg said his visit was simply a vacation, but it didn't stop the speculation then and it gives more credence to the current batch of rumors.
Baidu runs China's largest search engine. With Google essentially dropping out of the race, by moving its search engine outside of Chinese borders to bypass the censorship laws in the country, Baidu has consolidated its already wide lead.
The deal between the two internet powerhouses would spawn a new social network, not directly related to Facebook in any way.
This new social network would address the Chinese market alone and there wouldn't be any connections between the current Facebook and the new site, at least not very strong ones.
Though the two sides have reportedly struck a deal, there is no set date for a launch of the new project. There is also the matter of getting approval from the government to start the new site. Being a Chinese joint-venture, operating from within the country, it will have to obey the strict censorship laws in place there.
Facebook is currently blocked in China, although some residents have found ways of accessing the site. There is little chance of Facebook being unblocked in the country any time soon, but the lure of the biggest web market on the planet is probably too great for Facebook to ignore, leading to this deal with Baidu.