AS I MENTIOED A WHILE BACK QIHU SHOULD BE TYRADING AT $98 WHEN COMPAIRING IT TO BIDU
Using internet search marketshare alone, BIDU has 68% of China's search and QIHU at 16%. This means that someone stole 7% outside of these two players. Maybe SOGU. BIDU has lost 17% and QIHU grew 78%. Either way, China's search is worth $735 million per 1% marketshare using BIDU as a proxy. This means that QIHU's value should be $11.7 billion or $98.86/share. This of course does not include any grow in marketshare and QIHU's other businesses which contribute quite a bit to revenues. Now you can see why Tencent would pay $500 million for 2% marketshare. They actually got quite a good deal since it's worth $1.47 billion.