Rumor: Qihoo 360 President to Buy Qihoo's Enterprise Security Business
Tencent Tech, 12/09/15
Qi Xiangdong, president of Chinese internet services and security software provider Qihoo 360 (NYSE: QIHU), is reportedly considering a USD 300 mln management buyout (MBO) of Qihoo 360's enterprise security business, according to a source familiar with the matter.
Enterprise security accounts for only about 4% of Qihoo's total operating revenue, according to Zhu Xuan, an investor at New China Life Insurance (601336.SH), so an MBO would have a limited effect on Qihoo 360's overall business.
Previous reports have said that Qi Xiandong and Qihoo CEO Zhou Hongyi do not get along. While Zhou is more focused on hardware, Qi's interests are security and search. When directly questioned about whether Qihoo 360 would split up, Qi declined to comment.
According to data from CITIC Asset Management Corporation, Qihoo 360 will finalize the funding for privatization by the end of 2015. The company plans to complete privatization and delist from the New York Stock Exchange in mid-March 2016. Qihoo 360 will dissolve its variable interest entity (VIE) structure in June, 2016, and file with the China Securities Regulatory Commission for a relisting in China by the end of 2016.
Keywords: Zhu Xuan M&A Qi Xiangdong Zhou Hongyi Internet security Qihoo 360 QIHU corporate user delist spin-off
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