China’s Tencent has made a preliminary, non-binding provision to purchase New York’s indexed search engine operator Sogou as a component of a $2.1 billion deal, which analysts say can also help more effectively. Tencent expands its online search business.
The large games and social media company founded in Shenzhen is providing nine dollars in coins for any of Sogou’s U.S. custody stocks that do not have a position of its own, according to a network that Sogou launched on Tuesday. The agreement, if concluded, would see the apple become its own and become a wholly owned subsidiary of Tencent. Sogou’s shares rose 48% to $8.five at the close of operations on Tuesday, valuing the combined apple founded in Beijing at $3.3 billion.
Shawn Yang, managing director of Shenzhen’s-founded study corporation, Blue Lotus Capital Advisors, said Tencent can also expect the search to serve as consistent with its WeChat app. The most virtuous 1.2 billion user messaging platform also allows users to view a wide variety of content, such as news and music from other sites and app stations. Its mini-programs, or the so-called Lean app station that is also built-in and available on WeChat, also have product and content search features.
“If an agreement is reached, Tencent can also integrate Sogou into WeChat research,” Yang explains. “It is imaginable that Tencent has assessed Sogou in a position and is attracted by his skill and experience in technologies such as artificial intelligence.”
A Tencent spokesman said the apple had no further comment on the proposal and that Sogou did not respond to a request for comments by email. In the previous statement, the joint apple states that a special committee of the Board of Directors is reviewing the proposal. Tencent is in a position the largest shareholder in Sogou. It owns about 39.2% of Sogou and controls more than 50% of its voting rights. China’s media and entertainment apple Sohu holds a 33.8% stake and controls 44% of its voting rights.
The proposed agreement also comes at a time when tensions are emerging between China and the United States. Faced with an increasingly hostile environment and a imaginable crackdown on audits, large Chinese indexed apple corporations in the United States have chosen to finance channels closer to home. This year, corporations such as e-commerce site JD.com and gaming company Apple NetEase opted for secondary listings in Hong Kong, while online gaming company Changyou was privatized in April.
I am founded in Beijing and cover the Chinese generation sector. I make a direct contribution to Forbes, and a while ago I worked on my own for SCMP and Nikkei. Before Beijing, I spent six
I am founded in Beijing and cover the Chinese generation sector. I make a direct contribution to Forbes, and a while ago I worked on my own for SCMP and Nikkei. Before Beijing, I spent six months as an intern in the Hong Kong workplace of TIME magazine. I graduated from the Medill School of Journalism, Northwestern University. Email: [email protected] Twitter: @yueyueyuewang