Changyou.com: On pace for best day on Sohu.com's buyout offer
09/09/2019 12:22
** Chinese game developer's shares CYOU.O up 57.1% at
$9.30 premarket; second biggest gainer across NYSE and
Nasdaq-listed stocks
** Stock set for best day ever, and to recover YTD losses
and enter positive territory, if gains hold
** China-based internet co Sohu.com SOHU.O submits a
non-binding proposal to buy CYOU for $5 per Class A ordinary
share, or $10 per ADS, in cash urn:newsml:reuters.com:*:nPnc9YJKra
** Offer represents a premium of ~69% to CYOU's Friday close
** Sohu says its majority-owned subsidiary, Changyou, would
be privately held upon completion of the deal
** Brokerage Jefferies estimates Sohu, which tried buying
Changyou in May 2017, would pay $175 million in cash to CYOU
shareholders
** "With growth of the internet sector cooling down on
slowing traffic momentum, we expect privatization to be a topic
of discussion as in 2015" - analyst Thomas Chong
** Says in 2015, several internet companies were privatized
after their share prices fell sharply on their business models
migrating to mobile from PC
** SOHU shares rise 2.6% at $11.10 premarket
(Reporting by Praveen Paramasivam in Bengaluru)
((Praveen.Paramasivam@ThomsonReuters.com))