Qihoo 360 set to form JV with Coolpad

Qihoo 360 plans to invest US$409.1 million to form a mobile Internet device joint venture with Shenzhen-based smartphone maker Coolpad, the latest cross-industry investment in the telecommunications and Internet sectors in China.

Qihoo 360, China's biggest online security firm and the No. 2 Internet search engine service provider, will own 45 percent of the e-commerce venture.

The venture will market smartphones under the Coolpad's Dazen brand and sold mainly on the Internet. Coolpad will inject assets into the venture, including some trademarks, domain names and software copyrights, both companies said in statements yesterday.

"This is one of the key initiatives we are taking to strengthen our position in the Chinese mobile Internet and further establish ourselves as a leading mobile Internet platform in China," Zhou Hongyi, chairman and chief executive of New York-listed Qihoo 360, said in a statement.

The partnership with Qihoo 360 will help Coolpad to build a strong mobile Internet ecosystem, said Guo Deying, chairman of Hong Kong-listed Coolpad.

Coolpad, with more than 6,000 patents in the mobile phone sector, commands a 13.8 percent share in the Chinese 4G phone market.