Sohu Acquires $100 Million Equity In 7Road
Sohu.com Inc. (NASDAQ:SOHU) is a Chinese Internet portal company that has acquired $100 million worth of equity in online gaming company Shenzhen 7Road Technology (7Road). Sohu.com’s subsidiary Changyou.com made the acquisition. Changyou.com will initially get 68.26% ownership by paying $68.26 million in cash. 7Road will get $32.76 million based on performance-based earn-outs.
The acquisition is expected to be complete by June 30, 2011. Changyou.com will be working with the talent behind 7Road to make browser-based casual games. One of 7Road’s best known games is DDTank, a popular multiplayer shooting game that hit 350,000 concurrent users globally in Q4 2010 at its peak.
Changyou.com recently reported their quarterly earnings. They hit $97.1 million in revenues, which is a 35% year-over-year increase. The net income increased to $52.8 million, which is a 33% increase year-over-year.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry