Chinese internet company Qihoo 360 has signed a partnership agreement with handset manufacturer Coolpad. Qihoo 360 has invested USD 409.05 million in cash to take a 45 percent stake in a joint venture with Coolpad. The JV will mainly focus on mobile terminal products that are distributed via the internet as the primary channel. Qihoo 360 and Coolpad intend to build a mobile ecosystem involving designing, manufacturing, marketing and selling smartphones and other mobile internet devices in China.
The JV will market smartphones under the ‘Dazen’ brand in China. The JV will combine Coolpad's experience in smartphone design, manufacturing, supply chain management, and aftermarket services, with Qihoo 360's capabilities in mobile app development and online marketing. The partners thus plan to provide Chinese customers with integration of hardware, software and applications.
Under the terms of the partnership, Qihoo 360 will also become the default provider of key mobile services on full portfolio of Coolpad's smartphones, including mobile security, mobile app store and mobile search etc.
