Tencent Buys Stake In Sogou

Tencent Holdings, one of the largest Chinese Internet companies, yesterday bought a stake in sogou.com, the search engine which until now was a fully owned subsidiary of Sohu Inc (NASDAQ:SOHU). Tencent, according to the official statement, has invested $ 448 million in Sogou and has merged the search business and assets of its own soso search engine with the business of sogou.com. Tencent will now hold a 36.5% stake in Sogou. However Sohu and its affiliate companies will continue to hold a controlling stake in the Sogou search engine and Sogou will continue to operate independently as a Sohu subsidiary under its current management. 

According to Charles Zhang, CEO at Sohu.com, the partnership with Tencent will expand Sogou’s market share, market presence and significantly elevate its position in the highly competitive Chinese online PC search market, and even more so in the rapidly evolving Chinese mobile search market. The combined search service, according to the CEO, will be the second largest search engine in the Chinese internet search space just behind market leader Baidu (NASDAQ:BIDU). The stock price of Sohu had seen a sharp increase of over 7.5% in the last trading session before seeing a .09% dip in after-hours trade, following the announcement of the new agreement.

To see stock price movement, check Sohu stock chart.

Other Interesting Articles: Insider trade updates

Read our Newsletter here – Pandora media FPO announcement shoots down stock price

Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

show more

Comments on this article and BIDU stock

A great stock to invest in! Over the past six months, the company has gained more than 50%
Do share this awesome post