Search engine IPO depends on Tencent for results
02/08/2017 03:43
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Alec Macfarlane
HONG KONG, Aug 2 (Reuters Breakingviews) - China's Sogou is
planning a U.S. listing valuing it at up to $5 bln. The firm is
a distant second in mobile search behind Baidu. Sogou, or
"search dog", will have to work like one to convince investors
its relationship with part-owner Tencent can justify that
valuation.
Full view will be published shortly.
On Twitter https://twitter.com/AlecMac11
CONTEXT NEWS
- Sogou, the Chinese search engine, plans an initial public
offering in the United States.
- In a statement on July 31, Sohu.com, the Nasdaq-listed
internet company that controls Sogou, said the unit plans to
submit a confidential, draft registration statement for a
possible IPO to the U.S. Securities and Exchange Commission.
- In mobile, which accounts for the bulk of Sogou's search
business by revenue, it had a 7.9 percent market share in China
in the first quarter, according to China Internet Watch. This
ranks the company second after Baidu, with 78.2 percent.
- As of Dec. 31, Sohu held roughly 36 percent of Sogou's
outstanding, fully diluted equity and more than half the voting
rights. Tencent held a 45 percent stake in Sogou Information,
the company's so-called "variable interest entity" on the
mainland.
- For previous columns by the author, Reuters customers can
click on MAC/
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Baidu competitor says to focus on AI as it plans US IPO
urn:newsml:reuters.com:*:nL4N1KN27Q
Sohu statement http://www.prnewswire.com/news-releases/sohucoms-subsidiary-sogou-inc-plans-for-confidential-submission-of-draft-registration-statement-for-ipo-300496405.html
BREAKINGVIEWS - Baidu rebound buys time for reinvention
urn:newsml:reuters.com:*:nL3N1KJ17K
BREAKINGVIEWS - China's search dinosaur struggles to find new
life urn:newsml:reuters.com:*:nL4N1EU1HC
BREAKINGVIEWS - Baidu's AI reboot is overdue and welcome
urn:newsml:reuters.com:*:nL1N1G702T
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(Editing by Quentin Webb and Katrina Hamlin)
((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))
Keywords: SOGOU IPO/BREAKINGVIEWS