In response, Sogou said it appreciated Tencent's recognition of Sogou's value, technical capabilities and product innovation, according to Jiemian News. Next will be a serious discussion and measurement of relevant matters, so that Sogou can continue to create greater value for users.
Sogou stated that the Board of Directors has received a preliminary non-binding proposal from Tencent to acquire all the remaining outstanding ordinary shares of Sogou, including ADS, not already held by Tencent or its affiliates at a price of US $9.00 per common share or American depositary share (ADS) in cash. Sogou's board has just received the proposal and has yet to make any decision. A special committee of Sogou's board, made up entirely of independent directors, will consider the proposal. There is no guarantee that Tencent will make a final offer.
If the proposed deal is completed, Sogou will become an indirect, wholly-owned subsidiary of Tencent, which is not publicly held, and Sogou ADS will be delisted from the New York Stock Exchange.
IT home to learn that Tencent is currently Sogou single largest shareholder, holding 38.71%, more than Sohu's 33.44%.