Chinese Portal Sohu's Gaming Division Files For $120 Million IPO

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imageYes, some companies are still brave enough to file for IPOs: Changyou.com, the online gaming division of Chinese online and mobile portal giant Sohu (NSDQ: SOHU), has filed to raise up to $120 million in an IPO. It will be traded on the Nasdaq under the symbol CYOU. It will issue 7.5 million American depositary shares at $14 to $16 a share, with the underwriters being Credit Suisse and Merrill Lynch.

Sohu reorganized recently and made the gaming division into a separate unit. According to the prospectus filed, Changyou.com has a net income of $108 million, on revenues of $202 million in 2008, up in a big way from net income of $5.3 million on revenues of $42 million in 2007. Sohu will remain the majority shareholder after the IPO.

Changyou.com developed the popular multiplayer online role-playing game Tian Long Ba Bu and also operates the game Blade Online under license, and will kick off its investor marketing roadshow in Hong Kong on Thursday; it will price the deal on April 1, reports Reuters, citing sources. Of course this is just an initial filing for now. More details in the release here.

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R Staunch

This is helpful as some wall street types think SOHU is getting out of the gaming business.

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