Business

Sohu.com Limited (NASDAQ:SOHU) completes the acquisition of all of the outstanding shares of Changyou.com Limited (Changyou)

Sohu.com Limited (NASDAQ:SOHU) stock observed trading -59.13% off 52-week high price. On the other end, the stock has been noted 60.07% away from low price over the last 52-weeks. The stock disclosed a move of 5.01% away from 50 day moving average and -17.38% away from 200 day moving average. Moving closer, we can see that shares have been trading 37.50% off 20-day moving average. It has market cap of $334.28M.

On April 17, 2020, Sohu.com Limited (NASDAQ:SOHU) China’s leading online media, video, search and gaming business group, declared that it has completed the acquisition of all of the outstanding shares of Changyou.com Limited (Changyou) that it did not already beneficially own, through the merger (the Changyou Merger) of an indirect wholly-owned subsidiary (Changyou Merger Co.) of Sohu with and into Changyou, with Changyou being the company surviving the Changyou Merger. As a result of the Changyou Merger, Changyou has become a private company wholly owned directly and indirectly by Sohu and the American depositary shares of Changyou (the Changyou ADSs), each of which represented two Changyou Class A ordinary shares (Changyou Class A Ordinary Shares), are no longer traded on the Nasdaq Global Select Market.

Pursuant to the plan of merger for the Changyou Merger, each Changyou Class A Ordinary Share issued and outstanding immediately prior to the effectiveness of the Changyou Merger, other than Changyou Class A ordinary shares owned beneficially by Sohu, was cancelled in exchange for the right to receive $5.40 in cash without interest, and each outstanding Changyou ADS was cancelled in exchange for the right to receive $10.80 in cash without interest (less $0.05 per ADS cancellation fees and other fees as applicable). Because Changyou Merger Co. owned over 90% of the voting power represented by all issued and outstanding shares of Changyou prior to the effectiveness of the Changyou Merger and the Changyou Merger was in the form of a short-form merger in accordance with section 233(7) of the Companies Law of the Cayman Islands, the Changyou Merger was not subject to a vote of the shareholders of Changyou.

In connection with the Changyou Merger, each outstanding and fully vested option (each, a Vested Option) to purchase Changyou Class A Ordinary Shares under Changyou’s share incentive plans was cancelled, and each holder of a Vested Option has the right to receive an amount in cash determined by multiplying (x) the excess, if any, of $5.40 over the applicable exercise price of such Vested Option by (y) the number of Changyou Class A Ordinary Shares underlying such Vested Option; and each outstanding but unvested option (each, an Unvested Option) to purchase Changyou Class A Ordinary Shares under Changyou’s share incentive plans will remain outstanding and continue to vest following the effectiveness of the Changyou Merger in accordance with the applicable Changyou share incentive plan and award agreement governing such Unvested Option in effect immediately prior to the effectiveness of the Changyou Merger.

The China based company Sohu.com Limited moved with change of 25.51% to $8.66 with the total traded volume of 1213181 shares in recent session versus to an average volume of 496.77K. The stock was observed in the 5 days activity at 27.92%. The one month performance of stock was 52.73%. SOHU’s shares are at -29.65% for the quarter and driving a -42.99% return over the course of the past year and is now at -22.54% since this point in 2018.  Right now the stock beta is 1.76. The average volatility for the week and month was at 9.40% and 8.09% respectively. There are 38.60M shares outstanding and 29.02M shares are floated in market.

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