Why Sohu Stock Soared Today
Shares of Sohu.com Limited (NASDAQ: SOHU) soared on Tuesday after the company announced its subsidiary Sogou (NYSE: SOGO) is being acquired by Chinese conglomerate Tencent Holdings (OTC: TCEHY) for $1.18 billion. Sogou stock barely moved on the news since it already had spiked higher in July when Tencent first made the buyout offer.
Tencent stock was also largely unchanged. By contrast, Sohu stock was up 8% as of 12:00 p.m. EDT, but had traded as much as 20% higher earlier in the session.
As is often the case with stocks out of China, the business structure can be a little complicated. Sohu operates various web properties and owns subsidiaries, including search engine Sogou and former publicly traded online-game company Changeyou. As per the announced agreement, Tencent is acquiring all of Sogou in the deal and taking it private.
Source Fool.com
