BEIJING, Aug. 9 /PRNewswire-Asia/ -- Sohu.com Inc.
(Nasdaq: SOHU), China's leading
online media, communications, search, online games and wireless
value- added services group, today announced that it has entered
into a preliminary, non-binding term sheet for the possible sale to
strategic investors, including Alibaba Group(1) and Yunfeng Fund
L.P.(2) (collectively referred to as "Ali"), of a minority interest
of preferred shares in Sohu's Sogou online search business. The
non-binding term sheet also contemplates that certain members of
Sohu's executive management, including Dr. Charles Zhang, Sohu's Chairman and Chief
Executive Officer, will participate in the transaction as
investors. If the proposed transaction is completed, Sogou will use
the net proceeds from investors to further develop its
business.
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Proposed terms would involve issuing Sogou shares to Ali and Dr.
Charles Zhang's investment fund,
representing approximately 16 percent, respectively, of Sogou on a
fully-diluted basis. Sohu would then maintain 68 percent of Sogou.
The amount of the proposed investment and pricing were not
announced. Sohu and Sogou would also establish a share incentive
program for Sogou management and key employees as well as certain
members of Sohu's executive management. The non-binding term sheet
is subject, among other things, to the proposed strategic
investors' satisfactory completion of due diligence and the
parties' negotiation, preparation, and execution of definitive
investment documentation. Key pricing and other terms also are
subject to approval by Sohu's audit committee, which is composed
solely of independent directors. Sohu's audit committee and full
board, with Dr. Charles Zhang
abstaining, have given preliminary approval to the proposed
transaction, subject to the completion and review of a third-party
appraisal of the Sogou search business.
There can be no assurance that definitive investment documents
will be entered into by the parties, or that the proposed
transaction will be completed.
(1) Alibaba Group is a family of Internet-based businesses that
includes business-to-business international trade, online retail
and payment platforms and data-centric cloud computing services.
(2) A venture capital fund, started by Mr. Jack Ma and Mr. Feng Yu.
Safe Harbor Statement
This announcement may contain forward-looking statements.
Statements that are not historical facts, including statements
about Sohu's beliefs and expectations, are forward-looking
statements. These statements are based on current plans, estimates
and projections, and therefore you should not place undue reliance
on them. Forward-looking statements involve inherent risks and
uncertainties. We caution you that a number of important factors
could cause actual results to differ materially from those
contained in any forward- looking statement. Potential risks and
uncertainties include, but are not limited to, the risk that the
proposed investment transaction, which is non- binding on the
parties, will be abandoned by the parties and never completed.
About Sohu.com
Sohu.com Inc. (NASDAQ: SOHU) is China's premier online brand and indispensable
to the daily life of millions of Chinese, providing a network of
web properties and community based/web 2.0 products which offer the
vast Sohu user community a broad array of choices regarding
information, entertainment and communication. Sohu has built one of
the most comprehensive matrices of Chinese language web properties
and proprietary search engines, consisting of the mass portal and
leading online media destination www.sohu.com; interactive search
engine www.sogou.com; #1 games information portal www.17173.com;
the top real estate website www.focus.cn; #1 online alumni club
www.chinaren.com; wireless value-added services provider
www.goodfeel.com.cn; leading online mapping service provider
www.go2map.com; and developer and operator of online games
www.changyou.com.
Sohu corporate services consist of brand advertising on its
matrix of websites as well as paid listing and bid listing on its
in-house developed search directory and engine. Sohu also offers
wireless value-added services such as news, information, music,
ringtone and picture content sent over mobile phones. The Company's
massively multiplayer online role-playing game (MMORPG) subsidiary,
Changyou.com (NASDAQ: CYOU), currently operates five online games,
including the in-house developed Tian Long
Ba Bu, one of the most popular online games in China, and the licensed Blade Online, Blade
Hero 2, Da Hua Shui Hu and Zhong Hua Ying
Xiong. Sohu.com, established by Dr. Charles Zhang, one of China's internet pioneers, is in its
fourteenth year of operation.
For investor and media inquiries, please contact:
In China:
Ms. Li Mei
Sohu.com Inc.
Phone: +86-10-6272-6596
Email: ir@contact.sohu.com
Mr. Chen Yuan Yuan
Christensen
Phone: +86-10-5971-2001
Email: ychen@ChristensenIR.com
In the United States:
Mr. Jeff Bloker
Christensen
Phone: +1-480-614-3003
Email: jbloker@ChristensenIR.com
SOURCE Sohu.com Inc.
Copyright g. 9 PR Newswire