Sohu to Revise Offer for Online Gaming Firm Changyou After Weak Results

Sohu to Revise Offer for Online Gaming Firm Changyou After Weak Results

Liao Shumin

Date: Fri, 02/02/2018 - 14:55 / source:Yicai
Sohu to Revise Offer for Online Gaming Firm Changyou After Weak Results
Sohu to Revise Offer for Online Gaming Firm Changyou After Weak Results

(Yicai Global) Feb. 2 -- Chinese internet firm Sohu.Com Inc. will revise its price for acquisition target online game developer Changyou.Com Ltd. following weaker-than-expected financial results.

The Beijing-based firm reaffirmed its intention to purchase the firm in a letter to Changyou, though it will reexamine its bid price, the company said yesterday.

Sohu first extended a non-binding offer for Changyou in May last year to acquire all of the company's outstanding shares, for USD 21.05 each.

Shares in Sohu and its search engine arm Sogou Inc. have tumbled York since Sohu announced a USD556 million loss for last year, which is a key consideration for the re-think on the Changyou bid. Sohu also cites increased competition in the Chinese online gaming market and more regulatory oversight on Chinese mergers and acquisitions as other factors. 

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Keywords: Changyou.com, Buyout Offer, Charles Zhang