Tencent’s $448 million strategic investment in sogou

cloud network hunting on September 16 – and sohu sogou company (” sogou “), today announced a strategic cooperation with tencent. In the strategic cooperation, tencent to sogou $448 million, and its search business of tencent and other related assets into sogou, tencent then get sogou deals fully diluted 36.5% stake, and tencent holdings will increase to 40% or so in the near future.

after tencent’s investment is still the controlling shareholder of sogou sohu and its affiliated parties, sogou will continue as sohu, a subsidiary of independent operation. In the new sogou company, zhang stay on as chairman, Mr Lau, President and chief operating officer of tencent Ren Yuxin served as director of Mr. Mr Wang to continue as a director and chief executive leadership development of the whole company.

tencent and sogou reached a consensus: the common research and development, joint promotion and comprehensive integration of both products and services, and will be in the search technology, user research and in-depth cooperation in the field of data mining and so on. Sogou to its large user base in PC and mobile community provide including sogou input method and sogou search industry leading products.

“the strategic cooperation will enlarge the market share of sogou, and improve its search in the fierce competition in the PC market, as well as the rapid development of mobile search market leader”, chairman and chief executive of sohu, says Dr Zhang, “sogou will continue as a strategic asset of sohu, produce synergies with our other business and create greater value for sohu shareholders.”

“a merger with tencent search, we are very exciting, we became tencent’s closest strategic partner. Deep in combination with tencent core platform, and relying on the strong innovation ability, sogou search would have greater breakthrough, not only we will lead the mobile Internet innovation “, in the field of multiple sogou CEO wang xiaochuan said, “for example, in tencent mobile instant messaging service scenario optimised sogou input method will bring outstanding experience of input, and search and social networking will bring huge imagination.”

“sogou search business is tencent development ideal partner. We have been adhering to the “open, and win-win” concept, is committed to working with good team cooperation, to provide users with innovative products and services experience, to create a healthy, diverse new Internet ecosystem, “ma huateng of tencent company board chairman and chief executive, said” we are very appreciate the sogou team’s innovation ability, their performance. We believe that the sogou and search after the merger, will be in tencent’s social platform, browser and content, especially in the mobile terminal to provide users with better search experience.”

sogou innovation launched “input – browser – search” the strategy of “three-stage rocket” by the market, and developed a series of extremely popular with the users of the innovative products, including: according to the number of users iresearch consulting ranked first in the country’s PC Chinese input method; According to iresearch user permeability, ranked first in the mobile market of mobile pinyin input method; According to the third largest PC browser CNZZ web traffic statistics and PC search engine.

this transaction has been on September 16, 2013 signed and at the same time to complete the delivery. Credit suisse as the sohu’s financial advisers in the transaction. Goldman sachs as the tencent’s financial advisers in the transaction.