BEIJING, CHINA, April 12, 2005
- SOHU.COM Inc. (NASDAQ: SOHU), China's leading online media, communications,
commerce and mobile value-added services company, today announced it has
entered into a definitive agreement to acquire Go2Map Inc. and Go2Map Inc.’s
affiliate, Beijing Tu Xing Tian Xia Information Consultancy Co., Ltd., collectively
referred to as Go2Map, one of the leading online mapping service providers
in China. The acquisition will enable SOHU to apply Go2Map’s rich technological
expertise in professional location-based information to SOHU’s search engine
capabilities as well as online website content.
Go2Map (www.go2map.com)
is one of the leading mapping service solution providers in China. Its
mapping information platform enables online mapping services through different
Internet/Intranet platforms, mobile phones, call centers and PDAs. Go2Map's
database covers points of interests in 200 cities across China, which
has enabled it to develop multiple business applications, including sales
of software and map information resources. Go2Map also provides web surfers
a free on-line mapping inquiry system in 14 cities.
"Through this acquisition we expect to quickly establish a market
position in mapping solutions for nearly 100 million Internet users who
increasingly rely on online technology to find city destinations such
as government offices, restaurants and hotels, and bus line information.
We believe the acquisition will also enhance our overall competitive strength
as a portal and search engine as we enrich our online content and search
engine with location-based information," said Charles Zhang, Chairman
and CEO of SOHU.
SOHU will pay US$9.3 million in cash to acquire Go2Map, of which US$400,000
has been paid as of the signing of the share purchase agreement, US$8.9
million will be paid upon the closing of the acquisition and an additional
amount, not to exceed US$2.5 million, will be paid over 2 years after
the closing of the acquisition, subject to the satisfaction and attainment
of certain post closing operating and financial milestones of Go2Map.
“This acquisition will benefit both the users and marketing clients of
our search engine SoGou. With Go2Map, we can offer our users map-supported
local search while our small and medium sized enterprise clients will
see the effectiveness of their online marketing effort increase though
localization search,” said Jianjun Wang, SOHU’s Vice-President of Search,
Games and Technology.
Safe Harbor Statement
This announcement contains forward-looking statements. Statements that
are not historical facts, including statements about our beliefs and expectations,
are forward-looking statements. These statements are based on current
plans, estimates and projections, and therefore you should not place undue
reliance on them. Forward-looking statements involve inherent risks and
uncertainties. We caution you that a number of important factors could
cause actual results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties include,
but are not limited to, SOHU’s historical and possible future losses,
limited operating history, uncertain regulatory landscape in the People's
Republic of China, fluctuations in quarterly operating results, the company's
reliance on online advertising sales, wireless services (most wireless
revenues are collected from a few mobile telecom operators), online games
and e-commerce for its revenues, and the risks associated with integrating
a newly-acquired business into SOHU’s existing operations. Further information
regarding these and other risks is included in SOHU's Annual Report on
Form 10-K for the year ended December 31, 2004, and other filings with
the Securities and Exchange Commission.
About Sohu
SOHU.COM Inc. (NASDAQ: SOHU) is China's premier online brand and indispensable
to the daily life of millions of Chinese who use the portal network for
their news, search, e-mail, wireless messaging, instant messaging, browsing,
games and shopping. SOHU has built one of the most comprehensive matrices
of Chinese language web properties and proprietary search engines, consisting
of the mass portal and leading online media destination www.sohu.com;
interactive search engine www.sogou.com;
the #1 online alumni club www.chinaren.com;
#1 games information portal www.17173.com;
top real estate website www.focus.cn;
and wireless value-added services provider www.goodfeel.com.cn.
This network of web properties offers the vast SOHU user community very
broad choices regarding information, entertainment, communication and
commerce.
SOHU corporate services consist of online advertising on its matrix of
websites as well as paid listing and bidding listing on its in-house developed
search directory and engine. SOHU also offers three types of consumer
services. SOHU offers wireless value-added services such as news, information,
ringtone and picture content sent over mobile phones. The company also
operates two massively multi-player online role-playing games and manages
a business-to-consumer e-commerce platform.
SOHU.COM, established by Dr. Charles Zhang, one of China's Internet pioneers,
is in its ninth year of operation.
For further information:
Dahlia Wei
SOHU Investor Relations and Communications
Tel: +86 10 6272 6598
E-mail: ir@sohu-inc.com
http://www.sohu.com/about/English
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