China's top search engine Baidu.com has obtained a license from the State Council Information Office to offer news services, the Shanghai Securities News reported.

The report said that the company is now recruiting editors in preparation to launch the new service.

The move is believed to be a natural extension of Baidu's business, as both searching and portal services generate revenue through advertising.

China's portal market is dominated by Sina.com, Netease.com and Tencent, with a total market value of 10.1 billion yuan in 2006, according to the Internet Society of China.

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