Baidu chief says Chinese online search giant must change culture or risk bankruptcy
In wake of student’s death, Robin Li announces creation of 1 billion yuan fund to compensate users misled by paid ads
With the threat of bankruptcy and ruin looming for his company, Baidu founder and chief executive Robin Li Yanhong yesterday rallied employees to help change the culture inside the online search giant as it takes responsibility for a university student’s death last month.
Government regulators have ordered Nasdaq-listed Baidu, which controls more than 80 per cent share of China’s online search market, to implement stringent new measures that include limiting the amount of advertisements per page to less than 30 per cent and cleaning up the company’s medical-related paid-search business.
A task force set up by the Cyberspace Administration of China, the State Administration for Industry and Commerce and the National Health and Family Planning Commission announced on Monday the results of its week-long investigation of Baidu, following public outrage over the death of 21-year-old computer science student Wei Zexi, which was linked to a cancer treatment he found in an online search.
If we lose the support of users, we lose hold of our values, and Baidu will truly go bankrupt in just 30 days
It concluded that the objectivity of Baidu’s search results was compromised by the paid-search listings. It found that Baidu put a premium on high bidding prices from online advertisers and did not indicate sponsored links, both of which had affected the objectivity of its search results.
“The management and employees’ obsession of KPI (key performance indicators) has twisted our values ... and distanced ourselves from users,” Li said in an internal memo sent to Baidu staff on Tuesday. “If we lose the support of users, we lose hold of our values, and Baidu will truly go bankrupt in just 30 days.”