Sohu.com Announces Changyou to Acquire a Majority Stake in Social
Communication Software Provider Raidcall
NEW YORK, Nov. 20, 2013
NEW YORK, Nov. 20, 2013 /PRNewswire/ --Sohu.com Inc. (NASDAQ: SOHU), China's
leading online media, search, gaming, community and mobile service group,
today announces that its online game subsidiary, Changyou.com Limited
("Changyou") (NASDAQ: CYOU) and Kalends Inc. ("Kalends"), a provider of
comprehensive Internet products and services for the global market, today
jointly announce that they have entered into a definitive investment agreement
(the "Investment Agreement") pursuant to which Changyou will acquire 62.5% of
the equity interests, on a fully-diluted basis, of a company of Kalends
outside of China that will hold all of the assets associated with Raidcall
("Raidcall"), a free social communication platform (such assets, the "Raidcall
Business"), for US$50 million in cash. The transaction is expected to close in
December 2013, subject to customary closing conditions. This acquisition
accelerates Changyou's progress toward creating a global gamer platform.
Mr. Dewen Chen, Changyou's president, said, "With over 20 million registered
users globally, Raidcall is a popular, high-quality communication software
used by gamers for real-time audio group chat while they play online games.
With this transaction, Changyou offers gamers a more comprehensive selection
of products and moves forward in its plan to develop a platform business. In
addition, we will add a proven team of top engineers, and we are confident in
their capabilities to continue to make Raidcall a popular product in new
countries that we market to."
Mr. Yahui Zhou, chairman and chief executive officer of Kalends, said,
"Kalends and Changyou share the same passion in providing the best-in-class
products and services to gamers. With Changyou's investment in the Raidcall
Business and their expertise and capabilities in marketing, we see greater
chance for success and an even larger potential to grow Raidcall's presence
Raidcall is a free social communication software that facilitates real-time
online group activities via voice, text and video, allowing users to create
and organize groups of varying size to participate in a wide range of online
group activities such as online games, music, karaoke and other live
performance dynamics. Raidcall has provided group communication services to
over 20 million registered users to-date, including world-class professional
gaming teams such as Fnatic and Evil Geniuses. Available in 14 different
languages, Raidcall currently operates overseas in multiple regions, such as
Taiwan, Hong Kong, Macau, Brazil, Russia, and others.
Changyou.com Limited (NASDAQ: CYOU) is a leading developer and operator of
online games in China with a diverse portfolio of online games that includes
Tian Long Ba Bu, one of the most popular massively multi-player online ("MMO")
games in China, and DDTank and Wartune (also known as Shen Qu), which are two
popular web games in China. Changyou also owns and operates the 17173.com
Website, a leading game information portal in China. Changyou began operations
as a business unit within Sohu.com Inc. (NASDAQ: SOHU) in 2003, and was carved
out as a separate, stand-alone company in December 2007. It completed an
initial public offering in 2009. Changyou has an advanced technology platform
that includes advanced 2.5D and 3D graphics engines, a uniform game
development platform, effective anti-cheating and anti-hacking technologies,
proprietary cross-networking technology and advanced data protection
technology. For more information, please visit http://ir.changyou.com/.
Founded in 2008, Kalends Inc. is a provider of comprehensive Internet products
and services for the global market. Kalends has three core businesses that
include the development and global publishing of online games, the development
and operation of the Raidcall social communication platform, and the operation
of the Brothersoft free software download directory. Kalends is one of the
leading mobile game and web game developers and operators in China. It also
publishes mobile games and web games overseas. For more information, please
Sohu.com Inc. (NASDAQ: SOHU) is China's premier online brand and indispensable
to the daily life of millions of Chinese, providing a network of web
properties and community based/web 2.0 products which offer the vast Sohu user
community a broad array of choices regarding information, entertainment and
communication. Sohu has built one of the most comprehensive matrices of
Chinese language web properties and proprietary search engines, consisting of
the mass portal and leading online media destination www.sohu.com; interactive
search engine www.sogou.com; developer and operator of online games
www.changyou.com/en/ and leading online video website tv.sohu.com.
Sohu corporate services consist of online brand advertising on its matrix of
websites as well as bid listing and home page on its in-house developed search
directory and engine. Sohu also provides multiple news and information
services on mobile platforms, including Sohu News App and mobile news portal
WAP.Sohu.com. Sohu's online game subsidiary, Changyou.com (NASDAQ: CYOU) has a
diverse portfolio of online games that includes Tian Long Ba Bu, one of the
most popular massively multi-player online ("MMO") games in China, and DDTank
and Wartune (also known as Shen Qu), which are two popular web games in China.
Sohu.com, established by Dr. Charles Zhang, one of China's internet pioneers,
is in its seventeenth year of operation.
Safe Harbor Statement
This announcement contains forward-looking statements. It is currently
expected that the Business Outlook will not be updated until release of Sohu's
next quarterly earnings announcement; however, Sohu reserves right to update
its Business Outlook at any time for any reason. Statements that are not
historical facts, including statements about Sohu's beliefs and expectations,
are forward-looking statements. These statements are based on current plans,
estimates and projections, and therefore you should not place undue reliance
on them. Forward-looking statements involve inherent risks and uncertainties.
We caution you that a number of important factors could cause actual results
to differ materially from those contained in any forward-looking statement.
Potential risks and uncertainties include, but are not limited to, the current
global financial and credit markets crisis and its potential impact on the
Chinese economy, the uncertain regulatory landscape in the People's Republic
of China, fluctuations in Sohu's quarterly operating results, and Sohu's
reliance on online advertising sales, online games and mobile services (most
mobile revenues are collected from a few mobile network operators) for its
revenues. Further information regarding these and other risks is included in
Sohu's annual report on Form 10-K for the year ended December 31, 2012, and
other filings with the Securities and Exchange Commission.
For investor and media inquiries, please contact:
Tel: +86 (10) 6272-6593
In the United States:
Mr. Jeff Bloker
Tel: +1 (480) 614-3003
SOURCE Sohu.com Inc.
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