Alibaba buys shares in Sogou search engine
Sohu sells shares of its Sogou search engine
Sohu will actually sell 16% to Alibaba Group, parent of Hong Kong-listed Alibaba.com and Yunfeng fund, co-founded by Alibaba Chairman Jack Ma, and another 16% to a fund invested by Sohu Chairman Charles Zhang. The remaining 68% of Sogou will be held by Sohu.
When it launched Sogou, Sohu had big hopes for its wholly-owned search engine, but it has failed to gain market share against Baidu and Google during the past few years. The deal with Sohu will help Alibaba expand in the nation’s $1 billion search-engine market.
Sogou is China's third-biggest search engine
Alibaba doesn't seem to really believe in the search potential of Yahoo! China that it entirely owns. It actually pitched Yahoo! China site as an entertainment-oriented portal. By the way, we were wondering last week whether Yahoo! China would team up with a search partner.