Tencent-Backed Chinese Search Engine Sogou Debuts on NYS
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Tencent-Backed Chinese Search Engine Sogou Debuts on NYS

Tencent Backed Chinese Search Engine Sogou Debuts on NYS

Chinese search engine Sogou has taken a big step towards becoming international with a successful IPO last Friday. Its shares rose to $13, which raised $585 million for their expansion plans, which include mergers and acquisitions, as well as partnerships to develop practical artificial intelligence (AI).

“This IPO has opened a window for our globalisation,” said Sogou’s CEO Wang Xiaochuan to the Financial Times. “Globally, we will look at M&A and partnerships with companies who have the technology to improve our AI.”

Sogou is expected to seize a major share of the search market in China amid growth in mobile users. Sogou holds 20.9% of the market, while their fierce competitor, Baidu, is the leader at 41.2%. Sogou keeps 483 million users monthly, according to Reuters.

The IPO of Sogou (SOGO.N) is part of a major expansion for Chines tech companies, who are expanding throughout the International market. Recently, another Tencent Holdings enterprise -Sogou parent company- used an IPO to raise capital for China Literature Ltd (0700.HK).

After the IPO, Sohu company will remain Sogou’s controlling shareholder, while Tencent Holdings will own a 38.7%. The net income of the search company climbed 47%, up to $66.7 million in the nine past months, putting their revenue at $630.6 million in that period.

Marco Islas
Marco Islas
Journalist with 15 years of experience covering the verge between culture, tech and business lives in the Mexico Silicon Valley witnessing his bloom.

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