Sohu, Sogou, Tencent Announce Strategic Cooperation

Sohu, 9/16/13

Chinese internet firm Sohu (Nasdaq: SOHU) and its online search subsidiary Sogou, along with Chinese internet and mobile services firm Tencent (0700.HK), have jointly announced the establishment of a strategic partnership.

According to the agreement, Tencent has invested USD 448 mln in cash in Sogou, at the same time merging its Soso search-related businesses and certain other assets with the company. Following the transaction, Tencent now holds 36.5% of Sogou's equity capital on a fully-diluted basis. Sohu retains a majority stake in Sogou, which will continue to operate independently as a subsidiary of Sohu.

Sohu Chairman and CEO Charles Zhang will stay on as Chairman of Sogou. Tencent President Martin Lau and Tencent COO Mark Ren have joined Sogou's Board of Directors. Wang Xiaochuan will continue on as director and CEO of Sogou.

Editor's Note: For more background on this topic, please see "Rumor: Tencent to Acquire Stake in Sogou" MD 2/16/13 issue.

Keywords: Charles Zhang Martin Lau Wang Xiaochuan Mark Ren Internet online search Sogou Tencent Sohu 0700.HK investment M&A

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