Changyou PR, 4/25/11
Chinese online game developer and operator Changyou (Nasdaq: CYOU), a subsidiary of Internet portal Sohu (Nasdaq: SOHU), today announced it has recently entered into a definitive agreement with Shenzhen-based browser game developer 7Road Technology Co., Ltd. under which Changyou will acquire a majority equity stake in 7Road and its affiliates.
Changyou will acquire 68.258% of the equity of 7Road for a fixed cash consideration of approximately USD 68.26 mln, plus an additional variable cash consideration of up to a maximum of USD 32.76 mln that is contingent upon the achievement of specified performance milestones through December 31, 2012. The acquisition is expected to be completed by June 30, 2011, subject to regulatory approvals and other customary conditions specified in the agreement.
7Road is a developer of web-based games and the creator of multiplayer browser game DDTank (Dan Dan Tang). DDTank had more than 350,000 peak concurrent users (PCUs) globally in the fourth quarter of 2010. 7Road jointly operates DDTank with over 50 of the most frequently visited game portals and SNS sites in China and overseas, such as Duowan, Chinese internet company Baidu (Nasdaq: BIDU), Kaixin001 and RenRen. Translated into 9 different languages, DDTank has been launched in countries overseas including Vietnam, Taiwan, Brazil and others.