Sohu’s completion of Changyou’s privatization is expected to improve profits and continue to grow by more than 25%

Sohu’s completion of Changyou’s privatization is expected to improve profits and continue to grow by more than 25%
In 7 months, Sohu (NASDAQ: SOHU) completed the privatization of Changyou (NASDAQ: CYOU), an independently listed holding subsidiary.The company expanded its gains by 25 on Friday in US stock trading days.51%, and Changyou eventually locked in 10.$ 74, market value 5.$ 7.6 billion.On April 18, Sohu announced that it had completed the acquisition of all outstanding shares of Changyou that it did not hold.Sohu’s indirect wholly-owned subsidiary “Changyou M & A Company” merged with Changyou, and Changyou became the surviving company of this merger.After the merger, Changyou has become a private independent company directly or indirectly wholly-owned by Sohu. Changyou US stock depositary shares (ADS) are no longer listed on the NASDAQ Global Select Market.According to documents disclosed by Sohu on the official website of the US Securities and Exchange Commission (SEC), according to Changyou’s merger plan, the Class A common shares of non-Sohu holders that had been issued and existed before the merger were replaced in exchange for US stocks.$ 4 non-interest-bearing cash right; Changyou ‘s existing per ADS (representing 2 shares of Class A common stock) has been replaced in exchange for 10.The right to non-interest-bearing cash of $ 8 (requires 0 per ADS replacement and other fees in advance.05 USD).Since the Changyou M & A company held all voting rights of Changyou’s issued and existing shares in excess of 90% before the Changyou merger, the merger adopted a statutory simplified merger procedure and no Changyou shareholders were required to vote.In this Changyou merger, each compensation that is issued under Changyou Fair Incentive Plan, which is perpetual and can be exercised immediately to purchase Changyou Class A ordinary shares (hereinafter referred to as “feasible rights budget”) has been replaced, and holders of viable rights budgetThe right to receive a certain amount of cash in a budget, the amount from 5.The difference between USD 4 and the exercise price applicable to the exercise budget (eg 5.$ 4 is higher than the exercise price), which is determined by multiplying the number of shares of Changyou Class A common stock that can be purchased with this exercise budget.In addition, according to the Changyou Fair Incentive Plan, the existing and infeasible rights to purchase Changyou Class A common stock expenditure (hereinafter referred to as “infeasible rights budget”) will continue to exist, and the above infeasible rights budget will be managed according to Changyou ‘s actualThe applicable equity incentive plan and incentive agreement will continue to exist after the merger takes effect and calculate the exercise date.Changyou has requested to suspend the listing of its American Depositary Shares on the NASDAQ Global Select Market, and requested the NASDAQ Stock Market to submit documents to the SEC to notify the SEC of its American Depositary Shares from NASDAQGram delisted and delisted.Changyou also updated several related documents on the SEC website.According to public information, in July 2002, Changyou ‘s predecessor Sohu Games Division was established, and the company experienced the development path of agency and self-research.In May 2007, the open beta of “Dragons of the Eight Divisions” was launched, and this game is still contributing revenue to the company; in December of the same year, Changyou independently established the company.It was listed on NASDAQ in April 2009. After the listing, the company successively acquired merged companies.Changyou has always been Sohu’s stable source of cash supply.Even if quarterly revenue drops by 10% annually, Changyou will still announce a one-time dividend payment, bringing value to Sohu3.US $ 3.7 billion in disposable income.Zhang Chaoyang, chairman and CEO of Sohu’s board of directors, once told Sauna, Yewang, “Because we need to spend money.Because Changyou is split and listed, it can only be distributed through dividends. “In the past budget, he has always expected the company to achieve profitability and solve the problems of long-term reductions and total available funds.The investment bank Citigroup announced an increase in the rating of Sohu ‘s stock and weighed it. The proprietary Changyou will benefit both Sohu and Changyou. For Sohu, the benefit is more significant, because there is no need to replace “from income” (Changyou) is attributable to minority shareholders ‘rights.Citigroup predicts that the move will improve Sohu ‘s own reported profits.Before the Japanese and US stock markets on March 9, Changyou released its 2019 annual performance report, showing that its total revenue was 4.US $ 5.5 billion, an increase of 9% from 2018; the net profit attributable to Changyou Non-U.S. GAAP is 1.7.9 billion US dollars, an increase of 46%.There is no doubt that Sohu released the 2019 annual results on the same day, showing a total revenue of 18.US $ 500 million, an increase of 2% from 2018; the net replacement attributed to Sohu Non-U.S. GAAP is US $ 93 million, while the net replacement in 2018 was 2.USD 0.7 billion; after excluding the profits and losses of Sogou and Changyou, the net collapse was 2.$ 4.6 billion, compared with 3 in 2018.$ 2.6 billion.At present, Sohu has not disclosed whether to adjust Changyou’s follow-up business strategy.Democracy, Chen Dewen, CEO of Changyou, said that for the future, it will continue to implement the core strategy of “Top Games”, focusing on the MMOPRG mobile game, breaking demand in casual game and strategy game development, and occupying more vitalityInternational market.Changyou Congress expects total revenue to be 1 in the first quarter of 2020.$ 2.3 billion to 1.Between 3.3 billion US dollars, it also suggests that due to the potential impact of the new coronavirus epidemic, its predictions are very uncertain.Sauna, Night Net Editor Liang Chen Li Weijia Proofreading Liu Jun