Sohu.com, Sogou And Tencent Announce Strategic Cooperation - Quick Facts

(RTTNews) - Sohu.com Inc. (SOHU), Sogou Inc., and Tencent Holdings Limited (TCEHF.PK, TCEHY.PK) jointly announced the establishment of a strategic cooperation that will strengthen Sogou as a leader in the China market for search and internet services, particularly for the mobile platform.

Tencent has invested $448 million in cash in Sogou and merged its Soso search related businesses and certain other assets with Sogou. Immediately after the transaction, Tencent holds 36.5% of Sogou's equity capital on a fully-diluted basis, which could further increase to approximately 40% in the near future.

Sohu, together with its affiliates, remains the controlling shareholder of Sogou, which will continue to operate independently as a subsidiary of Sohu.

Tencent and Sogou have agreed to jointly develop, cross-promote and integrate their respective products and services, while collaborating in areas of search technology, user insights and data sharing. Sogou's leading products, including Sogou Pinyin and Sogou Search, will have direct access to the vast user base of Tencent's online and mobile social communities.

Sogou is a leading online search, client software and mobile Internet product provider in China. Sogou has over 400 million monthly active users on PC and more than 200 million monthly active users on mobile.