This excerpt taken from the SOHU 8-K filed Jun 1, 2005.
SOHU Announces Closing of Go2Map Acquisition
BEIJING, CHINA, May 31, 2005 - SOHU.com (NASDAQ: SOHU), Chinas leading online media, communications, commerce and mobile value-added services company, reports that it has closed the acquisition of Go2Map Inc. and Go2Map Inc.s affiliate, Beijing Tu Xing Tian Xia Information Consultancy Co., Ltd., collectively referred to as Go2Map, one of the leading online mapping service providers in China.
The acquisition involves the payment of US$9.3 million in cash, of which US$400,000 had been paid as of the signing of the share purchase agreement, and US$8.9 million was paid upon the closing of the acquisition on May 31, 2005. An additional amount, not to exceed US$2.5 million, will be paid over two years after the closing of the acquisition, subject to the satisfaction and attainment of certain post closing operating and financial milestones of Go2Map.
We believe the Go2Map acquisition will enhance our overall competitive strength as a portal and search engine as we integrate Go2Maps rich technological expertise in professional location-based information. We expect Go2Map to contribute to our strength in localization search as it allows us to offer our consumers more differentiated and compelling content in our drive to make SoGou one of the leading online search engines for the Chinese market, said Charles Zhang, chairman and CEO of SOHU.COM. This week SOHUs proprietary search engine SoGou launched its mapping search services in open beta version, integrating Go2Maps technology to provide convenient maps, location and transportation information to SoGou users. Currently SoGou has over three million pieces of mapping data, covering 200 cities across China, including high-way information, intra-city transportation as well as street information, which are all easily accessible to users by use of key words.
SoGous mapping search services are a highly targeted marketing tool for small and medium sized enterprises. These enterprises can mark out their business location and contact information in SoGous mapping database.
Since its launch in August of last year SoGou has developed very fast, with our database comprising close to one billion Chinese language indexed web pages and traffic jumping into the Top 20 of most visited Chinese websites according to Alexa.com. The launch of SoGou mapping services is expected to be another milestone in SoGous ongoing development, further commented Charles Zhang, chairman and CEO of SOHU.COM
Safe Harbor Statement
This announcement contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward- looking statement. Potential risks and uncertainties include, but are not limited to, SOHUs historical and possible future losses, limited operating
history, uncertain regulatory landscape in the Peoples Republic of China, fluctuations in quarterly operating results, and the companys reliance on online advertising sales, wireless services (most wireless revenues are collected from a few mobile telecom operators), online games and e-commerce for its revenues. Further information regarding these and other risks is included in SOHUs annual report on Form 10-K for the year ended December 31, 2004, and other filings with the Securities and Exchange Commission.