According to a source close to the situation, Brightwire learned that Sogou, a subsidiary of Sohu.com (SOHU) is going to become part of Qihoo 360, as the two companies have signed the paperwork. Wang Xiaochuan, CEO of Sogou, however, denied that the deal was finalized.
A deal between the two companies has been rumored for some time, but in recent weeks, speculation has picked up. Sogou has been linked to acquisition rumors in the past, with names such as Tencent, Qihoo and Baidu (BIDU), China's leading search company, all having reported interest in the company.
The acquisition is expected to boost Qihoo's market share in the lucrative Chinese search market. Sogou currently has less than 10% of the market, but 360 Search, Qihoo's search engine, has 16.3%, according to an industry Web site.Google (GOOG), which has had run-ins with the Chinese government in the past and no longer operates in mainland China, had approximately 3% of the market as of the end of June. Qihoo has not yet responded to a request for comment on this story. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV