BEIJING, April 5, 2018 /PRNewswire/ -- Changyou.com
Limited ("Changyou" or the "Company") (NASDAQ: CYOU), a leading
online game developer and operator in China, today announced that its board of
directors has declared a special cash dividend of US$4.70 per Class A ordinary or Class B ordinary
share, or US$9.40 per American
depositary share ("ADS"), each of which represents two Class A
ordinary shares. The aggregate amount of the special cash dividend
will be approximately US$500
million.
Record holders of the Company's ordinary shares at the close of
business U.S. Eastern Time on April 20,
2018 (the "Record Date") will be entitled to receive the
special cash dividend. Changyou expects The Bank of New York
Mellon, the depositary bank for Changyou's ADS program, to
distribute dividends to holders of ADSs as of the Record Date on or
about April 26, 2018.
Mr. Dewen Chen, Changyou's CEO,
commented, "We are pleased to reward our shareholders with this
special dividend, which reflects our continued commitment to drive
value for investors over the long term. After this distribution, we
are confident that we will have sufficient capital for our
business, including to fully fund our R&D, execute game
strategy, take advantage of new opportunities as they arise, and
maintain our leading position in the online game market, and we
believe that we will continue to be able to generate strong cash
flows."
In order to facilitate the distribution of this special
dividend, Changyou has revised its policy for its PRC subsidiaries
with respect to their distribution of cash dividends. Under the
revised policy, all PRC subsidiaries in the Changyou Group will be
able to distribute their cumulative available and undistributed
earnings to their direct overseas parent companies in the Changyou
Group. The change will result in Changyou's accrual of additional
withholding income taxes of approximately $47 million for the period before December 31, 2017, which will be recognized in
the Company's consolidated financial statements for the quarter
ended March 31, 2018.
As of December 31, 2017, Changyou
had cash and cash equivalents and short-term investments of
US$978 million. Operating cash flow
for the year ended December 31, 2017
was a net inflow of US$199
million.
Safe Harbor Statement
This announcement contains forward-looking statements.
Statements that are not historical facts, including statements
about the Company'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. The Company cautions 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, continuing
volatility in global financial and credit markets and its potential
impact on the Chinese economy; exchange rate fluctuations in
general and possible continued fluctuations in the exchange rate of
the RMB in particular, including their potential impact on the
Chinese economy and on the Company's reported U.S. dollar results;
slowing growth in the Chinese economy; the uncertain regulatory
landscape in the People's Republic of
China; fluctuations in Changyou's quarterly operating
results; the possibility that Changyou will be unable to develop a
series of successful games for mobile platforms or successfully
monetize mobile games it develops or acquires; the possibility that
the Company's margins will decline as a result of the need for
revenue-sharing with mobile game platform operators; and the
Company's reliance on TLBB as a major revenue source. Further
information regarding these and other risks is included in
Changyou's Annual Report on Form 20-F filed on February 28, 2018, and other filings with the
Securities and Exchange Commission.
About Changyou
Changyou.com Limited (NASDAQ: CYOU) is a leading developer and
operator of online games in China
with a diverse portfolio of popular online games, such as
Tian Long Ba Bu ("TLBB"), one of the
most popular PC games in China, as
well as a number of mobile games. Changyou also owns and operates
the 17173.com Website, a leading game information portal in
China. Changyou began operations
as a business unit within Sohu.com Inc. (NASDAQ: SOHU) in 2003, and
was carved out as a separate, stand-alone company in December 2007. It completed an initial public
offering on April 7, 2009. Changyou
has an advanced technology platform that includes advanced 2.5D and
3D graphics engines, a uniform game development platform, effective
anti-cheating and anti-hacking technologies, proprietary
cross-networking technology and advanced data protection
technology. For more information, please visit
http://ir.changyou.com.
For investor and media inquiries, please contact:
In China:
Changyou.com Limited
Investor Relations Department
Phone: +86 (10) 6192-0800
E-mail: ir@cyou-inc.com
In the United
States:
Ms. Linda
Bergkamp
Christensen
Phone: +1 (480) 614-3004
Email: lbergkamp@ChristensenIR.com
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SOURCE Changyou.com Limited