Japanese telecom NTT DoCoMo Inc.and Chinese Internet search operator Baidu Inc.established an alliance to distribute games and other mobile-phone content.Baidu will own 80 percent of this collaboration with DoCoMo holding the remaining 20 percent.This collaborative arrangement is an example of a(n):
A) joint venture.
B) network strategy.
C) equity strategic alliance.
D) nonequity strategic alliance.

Question

Quizplus · Accepted Answer

This collaboration is an equity strategic alliance because both companies own a portion of the new entity, with Baidu owning 80% and DoCoMo owning 20%.

Japanese Telecom NTT DoCoMo Inc