Sohu to buy Alibaba's Sogou stake for $25.8M

Chinese Web company files request to U.S. SEC to acquire remaining 10.88 percent stake in search operator Sogou, thus ending a two-year partnership with Alibaba.

Chinese Internet company will be acquiring from Alibaba Group the 10.88 percent share the latter is currently holding for online search operator Sogou.

In a filing made to the United States Securities and Exchange Commission on Monday, said the agreement between both companies was arrived at the end of June and it will be paying Alibaba US$25.8 million for its stake. and Alibaba's partnership lasted for almost two years. In August 2010, Alibaba announced it would be acquiring 16 percent stake in Sogou at US$15 million. Sohu remained the majority stakeholder of the search company with 68 percent share.

At the beginning of the partnership, Sogou's market share in China was at 0.8 percent with Baidu dominating the market at 70 percent share and Google at 24.2 percent share. A year in, Sogou's market share doubled and surpassed Google to become the second-largest search engine in China, according to a separate Sina Tech report on Monday.


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