Rumor: Qihoo 360 Acquires Sogou for USD 1.4 Bln
DoNews, 7/12/13
According to an industry source, Zhou Hongyi, CEO and Chairman of Chinese internet services and security software provider Qihoo 360 (NYSE: QIHU), recently left China for America to meet with Carol Yu, CFO of Chinese internet firm Sohu (Nasdaq: SOHU), to conduct final negotiations over Qihoo 360's acquisition of Sohu's online search subsidiary Sogou. The source also stated that the details of the acquisition have been set, and an announcement will soon be made that Qihoo 360 will fully acquire the search company for USD 1.4 bln.
Qihoo 360 will pay for the acquisition through issuance of new shares equivalent to 30% of Qihoo 360's current outstanding shares, according to the source. Once the acquisition is complete, Sohu Chairman Charles Zhang will be made Co-Chairman of Qihoo 360, with Zhou Hongyi maintaining his positions as CEO and Chairman.
Although Sogou CEO Wang Xiaochuan has denied the acquisition rumors, both companies have maintained an official policy of not commenting on the matter.
Editor's Note: For more information on this topic, please see "Rumor: Sogou May Announce M&A Details in July," MD 7/01/13 issue.
Keywords: Charles Zhang Wang Xiaochuan Zhou Hongyi Carol Yu Internet online search Sogou M&A Sohu Qihoo 360 QIHU
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