TheDeal.com -GOOG acquisition targets

"Perhaps the most attractive target is Baidu.com Inc. Google invested $5 million in the Internet search provider in 2004, taking a 2.6% stake. Beijing-based Baidu, the market leader in China with a roughly 57% share of the online search market, compared with 33% for Google, is an 'obvious choice' for acquisition, Brueschke says. But he adds that Google would face significant hurdles were it to pursue such a deal, including Chinese government resistance. Baidu, which trades on Nasdaq for nearly $57 a share and which carries a market capitalization of more than $1.9 billion, also may not want to sell.
'Google needs Baidu more than Baidu needs Google,' Brueschke said. 'Baidu is the leader and appears to be pulling away from Google in China.'"