According to Marbridge Consulting, Chinese internet company Baidu (Nasdaq: BIDU) has entered into an agreement to fully acquire internet firm Sohu’s (Nasdaq: SOHU) online search subsidiary Sogou.
Under the terms of the agreement, Baidu will acquire Sogou for USD 2-2.5 bln in an as yet unknown combination of cash and stock in Baidu’s online video subsidiary, iQiyi. After the transaction, Sohu could be iQiyi’s largest stakeholder, in which case Sohu may no longer be interested in acquiring Chinese P2P streaming video platform PPLive (PPTV), as previously rumored. Neither Baidu nor Sogou has confirmed the rumor.
Source: Marbridge Consulting