Chinese internet company Sohu to take video-games subsidiary Changyou private (updated)
24/01/2020 10:22
(Adds deal terms)
Jan 24 (Reuters) - China-based internet company Sohu.com Ltd
SOHU.O said on Friday it would take its majority-owned
subsidiary Changyou.com CYOU.O private in an all-cash deal
that values the company at about $579 million.
Changyou, which has a portfolio of mobile and computer games
including Tian Long Ba Bu, began as a business unit of Sohu.com
in 2003 and was later separated. urn:newsml:reuters.com:*:nPn9FwfLfa
Sohu said it intends to fund the deal primarily through
debt.
Under the agreement, Sohu will pay $10.8 for each Changyou
American Depositary Share (ADS), which represents a premium of
82.4% to the closing price of Changyou ADS on Sept. 6, the last
trading day prior to Sohu's proposal to take the company
private. urn:newsml:reuters.com:*:nPnc9YJKra
Sohu, which provides multiple news and information services
on mobile platforms including a news app and mobile news portal
m.sohu.com, expects to close the deal in the second quarter of
this year.
China Renaissance is serving as financial adviser to the
Sohu Group for the deal.
(Reporting by Manojna Maddipatla in Bengaluru;
Editing by Shailesh Kuber and Vinay Dwivedi)
((manojna.kalyani@thomsonreuters.com; within the U.S. +1 646
223 8780, outside the U.S. +91 80 6749 1692;))