Sohu Buys Back 10.88% of Sogou from Alibaba

Sohu’s latest Form 8-K filing with SEC showed the portal site will buy back 24 million Series A preferred share of its wholly-owned subsidiary Sogou from Alibaba. The deal approximately equals to 10.88% of the outstanding share capital of Sogou at a purchase price of $ 25.8M.

A quick review from the beginning: In August, 2010, Sohu announced to spin off its search subsidiary Sogou as an independent operation, CTO Wang Xiaochuan took office. Two months later, Alibaba Investment Limited invested $ 15 million in exchange for 10% of Sogou’s shares.

Sohu’s earning reports of Q1, 2012 showed that Sogou pulled in $ 23 million in revenue, which increased by 184% year over year.

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