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Tencent buys Sogou – one of China’s largest search engines

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Miguel A. Rodriguez
Miguel A. Rodriguez
20 July 2021
After fining the company for antitrust practices, the State Administration for Market Regulation has granted the “unconditional approval” for a purchase

China’s antitrust watchdog approved Tencent Holdings’ request to buy out US-listed search engine Sogou. The grant came days after the SAMR blocked the merger of Huya and Douyu International Holdings – the country’s two most significant video game live-streaming platforms. As Tencent is the controlling shareholder of Huya and owns more than a third of Douyu, the SAMR considered that the merger could have strengthened the company’s dominant position in the game streaming market.

The deal between Tencent and Sogou was initially announced in September 2020, when the first was looking to buy the 60% of the latter that it did not already own, making it the latest Chinese company to leave the US markets amid tensions between the countries. Tencent has been Sogou’s largest shareholder since 2013. At that time, it merged the search engine with its own Soso search.

After the news hit the wires, Tencent stock price climbed 3.9%.

Read here more about Tencent’s latest fine!

Sources: Bloomberg.com, scmp.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.