Sogou 2010 Loss Reaches USD 26.7 Mln
Marbridge Consulting, 3/08/11
Chinese Internet firm Sohu (Nasdaq: SOHU) today submitted its Form 10-K to the US Securities and Exchange Commission, which disclosed details on the performance of Sohu Video and Sohu's sponsored search subsidiary Sogou.
Sogou's 2010 net loss from continuing operations widened to USD 26.7 mln, compared to a loss of USD 20.5 mln in 2009. The loss was due to excess expenses in product development and sales and marketing.
Sogou will remain liable for a loan payable to Sohu in the amount of USD 45 mln, which will be payable solely from the proceeds of an initial public offering by Sogou. The loan amount consists primarily of losses historically incurred in Sogou's search business and previously funded by Sohu.
Sohu Video's unique visitors surpassed 100 mln in December 2010, an increase of 100% YoY. The cost of brand advertising revenues for 2010 rose USD 27.2 mln to USD 86.7 mln. The increase was primarily attributable to investment in Sohu's video site, including a USD 9.7 mln increase in content and license costs, and a USD 8.9 mln increase in bandwidth leasing costs to the company's expanded business.
Editor's Note: To view Sohu's complete 10-K report, please click here.
Keywords: online advertising users Internet loss Sogou Sohu IPO online search online video spin-off
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