Alex Xu, Co-CFO of Qihoo 360 (NYSE:QIHU) told Reuters today that the company was in talks to acquire Sogou Inc., an Internet service provider under Sohu (NASDAQ:SOHU). No agreement is reached.

Wang Xiaochuan, CEO of Sogou, said two months ago that they’d introduce strategic investment from Qihoo. More rumors later came saying Qihoo would acquire Sogou for $14 billion.

As the two companies have a similar business model, it is believed there are synergies between the two. If the acquisition is completed, the two will be dominant in markets of browser, Chinese Input method, Internet security, among others. The combined market share in search will also be the second in China.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.