On Monday, Sohu.com, Inc. (NASDAQ: SOHU) shares soared after reporting losses of $89 million but a 10% increase in revenues for the second quarter of the year. Shares increased 14.4% and the company plans on launching its Sogou business on a U.S. stock market through an IPO.
Sogou is a subsidiary of Sohu and was established in 2004 where it operates as “controlled internet search” through its own ranking system marking it China’s second or third ranked search engine behind Baidu. Sogou’s revenues increased by 30% to $211 million. Sohu’s revenue totaled to $461 million after having their “Legacy Tian Long Ba Bu Bu” games as one of their biggest online games in China during the quarter.
Sohu plans to invest more and wants to shift their content focus to self developed dramas and expects this move to generate more cost savings to improve their results in 2018.