Sohu, Alibaba to Establish Search JV
Techweb, 8/09/10
An industry source claims that Hangzhou-based e-commerce company Alibaba has reached an agreement with Beijing-based internet firm Sohu (Nasdaq: SOHU) to establish a subsidiary for joint development of Sohu's Sogou search engine. The source declined to reveal further details of the partnership, saying that the deal would be announced in the near future, but did add that Sohu CTO Wang Xiaochuan would continue to oversee Sogou as CEO of the new JV.
The JV reportedly could seek investment from a third-party fund; industry speculation is that this could be the newly established "Yunfeng Fund." The fund was started by Alibaba founder Jack Ma and Target Media founder David Feng Yu.
Sohu and Alibaba have yet to comment on the rumor.
Editor's Note: According to Sina Tech, Sohu has announced that it will spin off its Sogou search business. Sohu will remain the largest shareholder, with a 68% stake, while Alibaba and the "Yunfeng Fund" will take a 16% stake, as will Sohu CEO Charles Zhang. Zhang said Sogou has no immediate plans to list, though the board may decide to do so after the company has been spun off. Sohu CTO Wang Xiaochuan will become CEO of the new company.
Keywords: Jack Ma Wang Xiaochuan Target Media Internet Sogou Alibaba JV Sohu 1688.HK David Feng Yu online search
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