U.S.-listed gaming company Changyou.com will become a privately-held, wholly-owned subsidiary of Chinese internet stalwart Sohu.com through a merger.
Sohu has filed with the Registrar of Companies of the Cayman Islands to acquire all of Changyou’s outstanding shares that it does not already beneficially own through a merger plan, according to an announcement published by the Chinese company on Tuesday. Plans for the merger were first announced in January and Sohu is already a majority shareholder of Changyou.
According to the merger plan, on Friday Changyou Merger, a wholly-owned subsidiary of Sohu subsidiary Sohu Game, will merge with and into Changyou.
Class A ordinary shares of Changyou, other than those beneficially owned by Sohu, will be canceled in exchange for the right to receive $5.40 per share in cash. Meanwhile, Changyou American depositary shares (ADS) will be canceled in exchange for the right to receive $10.80 in cash, the announcement said.
Changyou Merger already owns more than 90% of voting rights in Changyou so the deal will be a short-form merger, the announcement said, adding that Changyou will delist from the Nasdaq Global Select Market and its ADS program will be terminated upon the deal’s completion.
Changyou, which develops the popular multiplayer online role-playing game “Tian Long Ba Bu,” began as a business unit of Sohu in 2003 and was later spun off in a Nasdaq IPO in 2009.
Contact reporter Ding Yi (email@example.com)