China's largest search engine company paid US $1.9 billion to purchase an app store firm, 91 Wireless, from Hong Kong-listed NetDragon Websoft Inc.This move by Baiidu Inc is part off its efforts in trying to diversify its portfolio to include the mobile market.

But analysts fear that Baidu may have waited too long and events may have already overtaken the buyout.

The search engine giant clearly is not after revenues since Wireless 91 only posted US $20 million during the first quarter. However, the company has an asset in terms of the mobile users who frequent Wireless' app store, the HiMarket.

Baidu could leverage on the HiMarket to help it sell more mobile games and apps then connect users to its search engine. Analysts claimed that whether or not it can recoup its investment is still up in the air.

However, its competition has already made headway in the mobile market game. For example, Tencent's WeChat, an application that allows users to send instant messaging for free, is already attracting 195 million active users.