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BEIJING, China, April 3, 2009 - Sohu.com Inc. ("Sohu.com" or "Sohu") (NASDAQ: SOHU), China's leading online media, communications, search, online games and mobile value-added services company, today issued a statement in relation to the initial public offering of its massively multi-player online role-playing games (or "MMORPGs") subsidiary, Changyou.com Limited ("Changyou") (NASDAQ: CYOU).
Dr. Charles Zhang, chairman and CEO of Sohu.com, said, "Today's IPO represents a new and significant chapter in Sohu's corporate history. We believe that Changyou's carve-out IPO allows for a sharper focus on the MMORPG business and related strategic opportunities while simultaneously helping us to pave the way for Sohu to push ahead with our long-term vision to maintain our position as a leading Internet company in China. Following the IPO, Sohu remains as Changyou's majority shareholder, and we expect to continue to provide Changyou with strong marketing and game development support."
Of the total of 7,500,000 American Depositary Shares (or "ADSs") of Changyou that are being offered in the IPO, 3,750,000 ADSs are being offered by Changyou and 3,750,000 ADSs, plus up to an additional 1,125,000 ADSs to cover over-allotments, are being offered by an indirect wholly-owned subsidiary of Sohu. Assuming that the underwriters do not exercise the over-allotment option, Sohu will hold approximately 70.7% of the total outstanding equity interests in Changyou and control 81.5% of the total voting power.
About Changyou
Changyou.com Limited ("Changyou")
(NASDAQ: CYOU) is a developer and operator of online games in China. Changyou
currently operates two MMORPGs, including the in-house developed Tian Long Ba Bu
and the licensed Blade Online. Changyou has three pipeline games scheduled to
begin open beta testing in 2009 and 2010, including the in-house developed Duke
of Mount Deer, as well as the licensed Immortal Faith and Legend of the Ancient
World.
About Sohu.com
Sohu.com Inc. (NASDAQ: SOHU) is
China's premier online brand and indispensable to the daily life of millions of
Chinese, providing a network of web properties and community based/web 2.0
products which offer the vast Sohu user community a broad array of choices
regarding information, entertainment and communication. 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; #1 online alumni
club www.chinaren.com; #1 games
information portal www.17173.com; the top
real estate website www.focus.cn; wireless
value-added services provider www.goodfeel.com.cn; and leading online
mapping service provider www.go2map.com.
Sohu corporate services consist of brand advertising on its matrix of
websites as well as paid listing and bid listing on its in-house developed
search directory and engines. Sohu also offers two types of consumer services.
The Company's MMORPG subsidiary, Changyou, currently operates two MMORPGs , Tian
Long Ba Bu and Blade Online . Sohu also offers wireless value-added services
such as news, information, music, ringtone and picture content sent over mobile
phones. Sohu.com, established by Dr. Charles Zhang, one of China's internet
pioneers, is in its thirteenth year of operation.
Safe Harbor Statement
This announcement contains
forward-looking statements. It is currently expected the Business Outlook will
not be updated until release of Sohu's next quarterly earnings announcement;
however, Sohu reserves right to update its Business Outlook at any time for any
reason. 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,
the current global financial and credit markets crisis and its potential impact
on the Chinese economy, the slower growth the Chinese economy experienced during
the latter half of 2008, which could continue into 2009, the uncertain
regulatory landscape in the People's Republic of China, fluctuations in Sohu's
quarterly operating results, Sohu's historical and possible future losses and
limited operating history, and the company's reliance on online advertising
sales, online games and wireless services (most wireless revenues are collected
from a few mobile network operators) for its revenues. Further information
regarding these and other risks is included in Sohu's annual report on Form 10-K
for the year ended December 31, 2008, and other filings with the Securities and
Exchange Commission.
Sohu.com Contact Information
Helen
Zhang
Director
Investor Relations and Corporate Communications
Tel: +86
10 6272 6969
E-mail: ir@contact.sohu.com
http://corp.sohu.com