Sogou Inc. has merged with Tencent Holdings. The search engine will become a privately-held company wholly owned indirectly by Tencent, delisting in the US.
Sogou has requested the suspension of ADS trading on the NYSE and was acquired at the price of US$9 per ADS.
In 2013, Tencent Holdings invested US$450 million in a merger between Soso, Tencent’s search engine, and Sogou, acquiring 36.5 percent of Sogou. By 2019 Tencent’s share had increased to 39.2 percent, with 52.3 percent of voting rights. Sohu, once a parent of Sogou, will receive US$1.2 billion for its 33.8 percent of Sogou.
In Q2, Sogou made US$148 million, 44 percent off compared with last year. The company made a net loss of US$8.5 million in 2020.