Sohu.com (SOHU) Files IPO For Changyou.com Gaming Unit

March 18, 2009 7:16 AM EDT

Sohu.com Inc. (Nasdaq: SOHU) announced that its massively multi-player online role-playing games subsidiary Changyou.com Limited (Nasdaq: CYOU) has filed a registration statement on Form F-1 with the SEC for an IPO of American Depositary Shares.

Each ADS represents two Class A ordinary shares of Changyou and the estimated price for each ADS offered ranges from $14.00 to $16.00.

A total of 7,500,000 ADSs of Changyou will be offered for sale. Of this total, 3,750,000 ADSs will represent newly-issued Class A ordinary shares being offered for sale by Changyou and 3,750,000 ADSs will represent Class A ordinary shares being offered for sale by Sohu.com (Game) Limited, an indirect wholly-owned subsidiary of Sohu. Proceeds to each of Changyou and Sohu Game from ADSs sold in the offering are expected to be approximately $52.3 million, and the total proceeds are expected to be approximately $104.6 million, assuming an initial public offering price per ADS of $15.00, which is the midpoint of the estimated public offering price range, and after deducting underwriting commissions but without deducting any offering expenses payable by Changyou or Sohu Game.

In addition, up to 15% of the 7,500,000 ADSs being offered initially, or up to 1,125,000 additional ADSs, will be available for purchase by the underwriters from Sohu Game to cover over-allotments, at any time within 30 days after the effectiveness of the registration statement.

After the offering, Sohu Game will continue to hold Class B ordinary shares of Changyou. Each Class B ordinary share is entitled to ten votes per share on any matter brought to a vote of Changyou shareholders, whereas Class A ordinary shares are entitled to one vote per share.

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