NEW YORK (TheStreet) -- Shares of YY (YY), a video-based Chinese social network with more than 300 million users, were gaining 6.7% to $79.82 on heavy trading volume Wednesday as Chinese stocks rally following Qihoo 360's (QIHU) buyout offer.
Qihoo 360 CEO Hongyi Zhou and other shareholders offer to buy the Chinese Internet company for $77 a share on Wednesday to bring it private. The offer represents a 16.6% premium over Qihoo 360's Tuesday closing price of $66.05 a share.
More than a dozen Chinese companies received buyout offers from executives this year, with Qihoo 360 being the largest of the group, according to Barron's.
YY lets users create groups around online games, music, dating shows, and fashion, among other things.
About 1.6 million shares of YY were traded by 10:52 a.m. Wednesday, above the company's average trading volume of about 1.5 million shares a day.
TheStreet Ratings team rates YY INC -ADR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate YY INC -ADR (YY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."