Sogou and Tencent Dump NYSE

Sogou and Tencent Dump NYSE

Chinese search engine Sogou confirmed Tuesday it would be taken private by tech giant Tencent, in a deal that values the US-listed firm at around $3.5 billion.

The announcement comes a day after Chinese internet giant Sina Corp, parent company of the country’s Twitter-like platform Weibo, said it would be taken private.

A growing number of Chinese companies have delisted from the US or opted for secondary, domestic listings as the world’s two superpowers butt heads over a number of issues including technology, Hong Kong and the virus.

Sohu.com, which is Sogou’s parent company, said in a statement that the purchase price will be at $9 per share.

This represents a premium of approximately 56.5 percent to the closing trading price of Sogou on July 24, when the company announced it had received a proposal on going private from Tencent.

If the share purchase is completed, Sohu’s subsidiary Sohu.com (Search) will receive an aggregate consideration of around $1.18 billion in cash, and Sohu will no longer have any beneficial ownership interest in Sogou.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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