China-based search engines and will soon be teaming up in order to form a new company. Both companies are backed by national media organizations and are all set to merge very soon.

search is an internet search engine which was jointly launched in 2011 by Xinhua News Agency, along with the country’s telecom operating giant China Mobile Ltd. On the other hand, was set up by the People’s Daily Newspaper two years ago. Sources familiar with the development said that Chinese authorities were pushing forward the merger for a while, but still hope to keep a low profile.

It was also pointed out that the merger process will involve many sensitive issues, like staff changes and other interests. Chinese authorities are also encouraging more state-owned organizations to become stakeholders in the new company which will be the result of the merger. Reports have also said that there are chances that China Mobile might withdraw from Panguso, as it is not able to bear losses related to the business.

However, the new company is not likely to provide users with search engines, but is probably going to introduce some new media products with the help of the resources of the companies which are involved.

Photo Credits: China Daily