Sohu Reaffirms Changyou Buyout Offer
Sohu.com Ltd. (Nasdaq: SOHU) reaffirmed its buyout proposal of Changyou.Com Ltd. (Nasdaq: CYOU) on Wednesday.
The statement came after various Chinese media reported that the media giant Sohu has dropped its acquisition proposal.
Last week, Sohu has proposed to acquire all outstanding shares of Changyou for $10 per American depositary share for $148.7 million, sending shares in Changyou to skyrocket 49 percent at the time. Assuming the approval of the offer, Changyou would become a privately-held, wholly-owned subsidiary of Sohu through a merger, which would result in the removal of Changyou's ADSs from the Nasdaq Global Select Market.
Sohu, which operates businesses in online media, video, search and gaming, controls the search engine Sogou Inc. (NYSE: SOGO) and the online gaming company Changyou. The company reported a net loss of $53 million in the second quarter and lowered its revenue guidance for the third quarter, expecting to generate between $445 million and $470 million.
Since the announcement of the bid, the stock in Changyou has soared 52 percent, from trading at $5.92 per share on Sept. 9 to today's intraday price of $9.02 per share.