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Sogou’s Loss Widens Amid Doubts Over Tencent’s Plan to Take Search Giant Private
Zhang Yushuo
DATE:  Nov 16 2020
/ SOURCE:  Yicai
Sogou’s Loss Widens Amid Doubts Over Tencent’s Plan to Take Search Giant Private Sogou’s Loss Widens Amid Doubts Over Tencent’s Plan to Take Search Giant Private

(Yicai Global) Nov. 16 -- Sogou reported a 15 percent increase in its net loss for the third quarter amid uncertainty among advertisers about Tencent Holding’s offer to take the Chinese internet giant private in a deal worth almost USD3.6 billion.

Sougou’s net loss widened to USD42 million in the three months ended Sept. 30 from USD36.6 million a year earlier, the Beijing-based company said in an earnings report published today. Revenue fell 31 percent to USD216.7 million due to a weaker search-related business.

The company, which operates a leading internet search engine, said on Sept. 29 that it had entered into a definitive agreement with subsidiaries of Shenzhen-based Tencent to take the company private.Tencent offered USD9 per American depositary share of Sogou that it does not already own.

Sohu, Sogou's controlling shareholder, said it would receive about USD1.18 billion in cash from the sale of its stake.

In pre-market trading in New York, Sogou’s shares [NYSE:SOGO] were 2.7 percent lower at USD8.68 each as of 6.23 a.m. local time. The stock has almost doubled in value this year, after surging in late July.

Editor: Tom Litting

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Keywords:   Sogou,Tencent,privatization