Digital media company ByteDance has bought a 22.2% stake in China-based information and social networking portal Baike.com for an undisclosed sum to become the company’s largest shareholder, KrAsia reported yesterday.
Founded in 2005 and previously known as Hudong.com, Baike runs an online encyclopaedia and editorial blogging platform that includes certain elements of social networking such as forums and fan groups.
The product employs the open-source Wiki information protocol, meaning a diverse range of users can maintain it by submitting entries based on their personal areas of expertise.
ByteDance runs a range of online platforms supported by machine learning technology, including a newly-launched search engine called Toutiao Search which it regards as synergistic with the Baike investment.
The move also puts ByteDance on the offensive in its rivalry with internet group Baidu, the search engine operator that also owns collaborative online referencing platform Baidu Baike.
Baike raised $15.6m from undisclosed investors in 2011, reportedly adding to a total of $30m from DFJ Dragon, a China-focused vehicle for venture capital firm DFJ, across two rounds in 2006 and 2009.
The company was in the process of raising $50m in series C funding in 2012 from backers including affiliates of Xpert Financial, according to VentureBeat. Russian news source Venture News reported four months later that the target had been met.