Qihoo 360 has invested USD409.05 million to create a joint venture with Coolpad.

The joint venture, which is 45% owned by Qihoo 360, will be responsible for the design, manufacturing, and sales of mobile terminal products such as mobile phones.

Taking the Internet as its major sales channel, the joint venture will use Coolpad's experience in smartphone design, manufacturing, supply chain management, and post-sales services as well as Qihoo 360's mobile application development and online marketing capacities. The joint venture's smartphones will be sold under Coolpad's Dazen brand.

In 2012, Qihoo 360 cooperated with several mobile phone makers in the launch of a customized product, which used Qihoo 360's marketing resource and software. However, the product failed because it did not realize scale production.