Sohu May Issue Independent IPO for Online Gaming Division

Sohu announced today that it is very possible the company may split its Online Games division so that it can issue a separate IPO in the United States. A spokesman stated that the company will soon deliver IPO registration draft documents to the US Securities and Exchange Commission in an unofficial capacity. Sources have stated that Sohu has already established an offshore company in the Cayman Islands for its online gaming business, a common practice among Chinese online games companies. Its main online games revenues are derived from the Chinese-themed title Tianlong Babu, which generated revenues of US$45.5 million, up 17% quarter-on-quarter in Q2 2008.