Sohu.com Issues Statement on Changyou.com IPO
April 02 2009 - 5:04PM
PR Newswire (US)
BEIJING, April 2 /PRNewswire-Asia/ -- Sohu.com Inc. ("Sohu.com" or
"Sohu") (NASDAQ:SOHU), China's leading online media,
communications, search, online games and mobile value-added
services company, today issued a statement in relation to the
initial public offering of its massively multi-player online
role-playing games (or "MMORPGs") subsidiary, Changyou.com Limited
("Changyou") (NASDAQ:CYOU). Dr. Charles Zhang, chairman and CEO of
Sohu.com, said, "Today's IPO represents a new and significant
chapter in Sohu's corporate history. We believe that Changyou's
carve-out IPO allows for a sharper focus on the MMORPG business and
related strategic opportunities while simultaneously helping us to
pave the way for Sohu to push ahead with our long-term vision to
maintain our position as a leading Internet company in China.
Following the IPO, Sohu remains as Changyou's majority shareholder,
and we expect to continue to provide Changyou with strong marketing
and game development support." Of the total of 7,500,000 American
Depositary Shares (or "ADSs") of Changyou that are being offered in
the IPO, 3,750,000 ADSs are being offered by Changyou and 3,750,000
ADSs, plus up to an additional 1,125,000 ADSs to cover
over-allotments, are being offered by an indirect wholly-owned
subsidiary of Sohu. Assuming that the underwriters do not exercise
the over- allotment option, Sohu will hold approximately 70.7% of
the total outstanding equity interests in Changyou and control
81.5% of the total voting power. About Changyou Changyou.com
Limited ("Changyou") (NASDAQ:CYOU) is a developer and operator of
online games in China. Changyou currently operates two MMORPGs,
including the in-house developed Tian Long Ba Bu and the licensed
Blade Online. Changyou has three pipeline games scheduled to begin
open beta testing in 2009 and 2010, including the in-house
developed Duke of Mount Deer, as well as the licensed Immortal
Faith and Legend of the Ancient World. 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 http://www.sohu.com/ ; interactive
search engine http://www.sogou.com/ ; #1 online alumni club
http://www.chinaren.com/ ; #1 games information portal
http://www.17173.com/ ; the top real estate website
http://www.focus.cn/ ; wireless value-added services provider
http://www.goodfeel.com.cn/ ; and leading online mapping service
provider http://www.go2map.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 engines. Sohu also offers two types of consumer services. The
Company's MMORPG subsidiary, Changyou, currently operates two
MMORPGs, Tian Long Ba Bu and Blade Online. Sohu also offers
wireless value-added services such as news, information, music,
ringtone and picture content sent over mobile phones. Sohu.com,
established by Dr. Charles Zhang, one of China's Internet pioneers,
is in its thirteenth year of operation. Safe Harbor Statement This
announcement contains forward-looking statements. It is currently
expected the Business Outlook will not be updated until release of
Sohu's next quarterly earnings announcement; however, Sohu reserves
right to update its Business Outlook at any time for any reason.
Statements that are not historical facts, including statements
about our 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 current global
financial and credit markets crisis and its potential impact on the
Chinese economy, the slower growth the Chinese economy experienced
during the latter half of 2008, which could continue into 2009, the
uncertain regulatory landscape in the People's Republic of China,
fluctuations in Sohu's quarterly operating results, Sohu's
historical and possible future losses and limited operating
history, and the company's reliance on online advertising sales,
online games and wireless services (most wireless revenues are
collected from a few mobile network operators) for its revenues.
Further information regarding these and other risks is included in
Sohu's annual report on Form 10-K for the year ended December 31,
2008, and other filings with the Securities and Exchange
Commission. For further information, please contact: Sohu.com Inc.
Helen Zhang Director, Investor Relations and Corporate
Communications Tel: +86-10-6272-6969 Email: Web:
http://corp.sohu.com/ DATASOURCE: Sohu.com Inc. CONTACT: Shanshan
Cai, Manager, Investor Relations and Corporate Communications at
+86-10-6272-6596 or Web site: http://www.sohu.com/
http://www.sogou.com/ http://www.chinaren.com/
http://www.17173.com/ http://www.focus.cn/
http://www.goodfeel.com.cn/ http://www.go2map.com/
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