This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sohu Pops on Persuasive Qihoo Rumors

NEW YORK ( TheStreet) -- ( SOHU) was popping more than 5.5% to $64.04 in afternoon trades Monday, with volumes nearly doubling on rising Chinese media speculation over the last few days that the company's Sogou search business has become the takeover target of Chinese internet companies Qihoo 360 Technology ( QIHU), ( BIDU) and Tencent.

The potential buyers were all down more than 2% Monday. Of the three, Qihoo is rumored to be the most serious bidder for Sogou, offering $1.4 billion in cash and stock, as this relatively new entrant to the Chinese search market seeks to build up its search volumes, search technologies and sales force through Sogou. The combined forces of Qihoo and Sogou could boost their search volume to nearly 20% of all search volume in China, according to Oppenheimer data, and increase their bidding power over advertisers.

"Qihoo can get the most synergies out of the combination," said Andy Yeung, an analyst at Oppenheimer & Co. in New York. "The combination would make Sohu's Sogou business and Qihu's search business a more credible competitor to Baidu."

Baidu, which is rumored to be willing to pay even more for Sogou, would likely not have too much to gain on the technology side and ad sales network side through the purchase, but would benefit from Sogou's popular pinyin Chinese input technology. "For Baidu, I think this would be a logically defensive move," Yeung commented.

Likewise, Tencent already has an ad sales network so there would be redundancy there in an acquisition. However, the purchase would bring Sogou's pinyin input technology to Tencent's mobile side and push it to the top two or three position in the Chinese internet search space. "Close to a double-digit market share," said Yeung.

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BIDU $175.61 -1.80%
QIHU $75.59 -0.43%
SOHU $43.39 -2.20%
AAPL $95.38 1.90%
FB $118.05 -0.44%


Chart of I:DJI
DOW 17,764.74 -126.42 -0.71%
S&P 500 2,062.53 -18.90 -0.91%
NASDAQ 4,770.89 -46.7040 -0.97%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs