Kunlunxin's IPO May Add Incremental Value to Baidu -- Market Talk

Dow Jones01-27

0426 GMT - Kunlunxin's coming IPO could generate incremental value for its parent Baidu, Barclays analysts say in a research note. Baidu's core advertising business has been under significant pressure, they note, adding that "with consumers now having several AI-powered chatbots on their phones, usage of traditional search may be set for an accelerated decline." However, the challenges for Baidu's advertising business have been more than offset by recent investor enthusiasm around the company's AI chip business, they reckon. Kunlunxin could generate US$1.5 billion-$2 billion revenue in 2027, they estimate. With a valuation of around US$25 billion-US$30 billion for Kunlunxin, Baidu could gain incremental value of US$15 billion-US$18 billion, given its 60% stake. Baidu shares are last at HK$155.20. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

January 26, 2026 23:26 ET (04:26 GMT)

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