Quick Take: Sohu to Make IPO for Sogou Search Unit

Sogou, the online search engine co-owned by Sohu.com Inc. and internet giant Tencent, said on Monday it plans to make confidential filings for a New York listing, following signals earlier this year that it would make such a move.

The number of shares and size of the initial public offering have yet to be determined, Sohu said in a statement.

“The IPO may commence as early as market conditions permit, and is subject to Sogou's filing with the (Securities and Exchange Commission)…in compliance with the U.S. Securities Act of 1933,” Sohu said.

Earlier in the year, Sogou CEO Wang Xiaochu told Bloomberg his company was aiming to make an IPO that valued the company at $5 billion, probably this year. He said such an offering would involve the sale of about 10% of the company.

Sogou is controlled by Sohu, but is also partly owned by Tencent Holdings Ltd. Also on Monday, Sohu released its latest quarterly report that showed its net loss widened to $88 million for the quarter through June, from $63 million a year earlier. Its revenue grew 10% to $461 million.

Sohu is in the process of privatizing one of its other main units, the New York-listed game operator Changyou, which has struggled in recent years due to stiff competition in China’s online gaming sector.

Contact reporter Yang Ge (geyang@caixin.com)