Sohu completed the “privatization” transaction of Changyou company, and its share price soared more than 25%

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Sohu shares rose all the way to $8.66 on Friday, up 25.51% at the end of the day.
On April 15, Sohu announced that it would complete the privatization of Changyou, the holding subsidiary of its game business, which will become a wholly-owned private company of Sohu, in three days.
After Friday’s closing, Sohu officially announced that Sohu had completed the acquisition of all outstanding shares of Changyou that it did not hold through merger. In the merger, Changyou merger Co. limited, an indirect wholly-owned subsidiary of Sohu, was merged into Changyou, and Changyou became the surviving company of the merger. After the merger, Changyou has become a private company owned directly and indirectly by Sohu. Changyou’s American Depository stock (i.e. “ads”, one American Depository stock representing two class a common shares) is no longer listed on the NASDAQ Global Select market.
Citigroup, an investment bank, yesterday announced a higher rating on Sohu shares, explaining the significance of the move: “Changyou will become a private company owned directly and indirectly by Sohu.”
This arrangement will benefit both companies, especially for Sohu, because it will no longer need to “deduct (Changyou) the equity attributable to minority shareholders” from the earnings. Citi predicts that the move will improve Sohu’s own reported profits, so Sohu’s current share price is low.