- Sohu is an online media and game service group from China.
- Note that Sohu sold its search division to Tencent for $1.1 billion. Sohu sold the best business division of the company and kept the worst-performing divisions.
- The question arises about whether the company does not distribute all the cash. If Sohu doesn’t have new business projects, shareholders may want to receive a dividend.
- Taking into account the figures from the quarter ended June 30, 2020, without the search division, Sohu may make $170-180 million per quarter.
- The market capitalization is equal to more than $700 million. Even if the brand advertising and online gaming do not grow, the valuation is very low.
For further details see:
Sohu.com Limited: Bad Business Decisions