Tencent Offers to Buy Out Chinese Search Engine Sogou in Over $2 billion Deal
Tencent Offers to Buy Out Chinese Search Engine Sogou in Over $2-billion Deal
The proposal would take Sogou private, with Tencent offering $9 (roughly Rs. 670) for each US depositary share it does not already hold.
By Agence France-Presse | Updated: 28 July 2020 14:47 IST
Tencent is one of the world's largest gaming companies
Sogou made its stock market debut in 2017
Sogou currently has a market capitalisation of around $3.3 billion
News of the potential deal Sohu's share price up almost 40 percent
Chinese tech giant Tencent has offered to buy search engine Sogou in a deal worth around $2 billion (roughly Rs. 14,969 crores), sending the latter's share price soaring 48 percent in New York.
The proposal would take Sogou private, with Tencent offering $9 (roughly Rs. 670) in cash for each American depositary share it does not already hold, said Sogou's parent company Sohu.com on Monday.
Chinese tech companies have been looking into listings closer to home as tensions rise between the United States and China on multiple fronts, and with US-listed Chinese firms coming under heightened scrutiny overseas.
Chinese e-commerce giant JD.com -- which listed on the Nasdaq in New York in 2014 -- made its Hong Kong debut in June, while Alibaba-affiliated online payments giant Ant Group said this month it has taken the first steps towards a dual listing in Shanghai and Hong Kong.
Sohu said it is considering the offer by Tencent, which holds nearly 40 percent of Sogou's total issued and outstanding shares.
The $9 (roughly Rs. 670) per share offer represents a premium of around 56.5 percent to the closing trading price last Friday, Sohu added.
News of the potential deal sent Nasdaq-listed Sohu's share price up almost 40 percent.
Sogou made its stock market debut in 2017, and currently has a market capitalisation of around $3.3 billion (roughly Rs. 24,702 crores).
Tencent is one of the world's largest gaming companies and, like other tech giants, has benefited enormously from the billions of people around the world forced into lockdowns or restricted by social distancing rules.