SOHU - Why Changyou.com Stock Skyrocketed 65.5% in September
Shares of Changyou.com (NASDAQ: CYOU) soared 65.5% in September, according to data from S&P Global Market Intelligence, after its former parent company and largest stakeholder, Sohu.com (NASDAQ: SOHU), made a non-binding offer to acquire the Chinese video game developer for $10 per American depositary share (ADS). When Changyou.com announced the proposal on Sept. 9, that price marked a whopping 69% premium from the previous day's close.
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To be fair, the timing of Sohu's offer is no coincidence. Shares of Changyou had plunged more than 65% year to date leading up to the announcement, including a more-than 50% single-day drop in June (as fellow Fool Keith Noonan pointed out at the time) after the company paid a special dividend of $9.40 per share in an apparent effort to return cash to Sohu and pave the way for such a transaction.