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Rumor: Changyou to Acquire

BiaNews, 9/30/11

An industry source closely connected with Chinese online game developer and operator Changyou (Nasdaq: CYOU), a subsidiary of internet portal Sohu (Nasdaq: SOHU), has revealed that Changyou is soon to acquire online gaming portal from Sohu. At present the two sides are ironing out the final details of the negotiations, and once the transaction is completed, 17173 will operate as an online gaming media outlet subsidiary of Changyou, maintaining independent operations. The source also revealed that the acquisition is set to be completed by the end of this quarter.

According to the source, financial aspects aside, the transaction will not have a large impact on Changyou or 17173; Changyou's acquisition of 17173 comes as part of a more comprehensive adjustment of business objectives by Sohu.

At present both Changyou and 17173 have yet to comment on the news.

17173 was established in 2001, and was acquired by Sohu in November 2003.

Keywords: 17173 Changyou online gaming Internet CYOU Sohu M&A


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