Qihoo 360 today announced that it has issued a notice to smartphone maker Coolpad to exercise its put option, requiring the latter to purchase Qihoo’s entire 49.5% stake in Coolpad E-Commerce, a joint venture between the two which is also the parent company of Coolpad’s sub-brand Dashen and Qihoo-backed smartphone brand Qiku.

[Update] Qihoo 360 and Coolpad has just reached an agreement on Sept. 18 that the former will raise its stake in the joint venture to 75%, while the rest is hold by Coolpad.

According to an official statement from Qihoo, the company has a put option to sell its entire stake in the joint venture to Coolpad at a total price equal to twice its fair market value, exercisable if Coolpad breaches its non-compete obligations under the shareholders agreement.

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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.