NEW YORK (AP) — A subsidiary of Sohu.com has reached a deal with a rival company that could boost its position on the Chinese Internet.
Shares of Sohu.com Inc. spiked 9 percent, or $5.94, to $70.68 before the opening bell.
The rival internet search company, Tencent Holdings Ltd., invested $448 million in Sogou, the subsidiary of Soho.com, and it merged its Soso search related businesses and other assets with that company.
Once the deal becomes effective, Tencent will hold an about 37 percent stake in Sogou, which could increase to about 40 percent down the road.
Sohu.com still holds a controlling stake in Sogou and Sohu Chairman and CEO Charles Zhang will remain Sogou's chairman. Tencent President Martin Lau and Chief Operating Officer Mark Ren joined Sogou's board. Wang Xiaochuan will remain Sogou's director and CEO.
As part of the deal, Tencent and Sogou will jointly develop, promote and merge their respective products and services, while working together in areas of search technology and data sharing, the companies said.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Original headline: Sohu.com inks investment deal with Tencent
Most Popular Stories
- Frightfully Fun Films Return for Halloween
- Pfizer Approves $11 Billion Buyback Plan
- Would Soccer Be Richer Without Small Clubs?
- Cloud Lifts Microsoft's Quarterly Results
- Hollywood Eager to Grasp Hispanic Market
- IS Funded by Black Market Oil Sales, Racketeering
- Jennifer Aniston, Justin Theroux Set the Date
- Weekly Jobless Claims Rise but Remain Low
- Stocks Continue Strong After Opening Surge
- Teresa Giudice Must Serve Time in Prison