July 28 news, Sohu.com announced today that it plans to submit the draft registration documents for the initial public offering of Changyou Ltd's American Depository Shares in a non-public manner to the US Securities and Exchange Commission. These American Depository Shares represent the ordinary shares of Changyou Ltd. Changyou Ltd was recently established in the Cayman Islands as a subsidiary of Sohu.com engaged in online game business. The number and amount of the planned issuance of American Depository Shares have not been determined yet.
Mr. Zhang Chaoyang, Chairman of the Sohu Board of Directors, said that separating the gaming business and establishing Changyou Ltd is a resolution of the Sohu Board of Directors. After its establishment, Changyou Ltd will be an absolutely controlled subsidiary of Sohu, and its main business will be online games.