Rumor has it that Yahoo is going to buy a Chinese spyware company 3721, whose business model is very much like Real Names in the U.S., for $100 - $120 million. Jerry Yang will be in Beijing to announce the deal soon. Yahoo will probably position this company as a search engine.
According to reports, Zhou Yiwei, president of 3721, will go to Hong Kong to sign a contract with Yahoo today. The deal is as follows - Yahoo will give 3721 US$100 million in both cash and stock to buy 3721 Hong Kong Company.
Yahoo! Holdings (Hong Kong) Ltd., a unit of Internet giant Yahoo! Inc. (YHOO), said Friday it had signed a deal to buy Hong Kong software developer 3721 Network Software Company Ltd. for US$120 million.