Sohu.com Falls as Company Says it is Not Going Private
Shares of Chinese internet company Sohu.com (NASDAQ: SOHU) were lower on Wednesday after the company squelched market rumors that it is in talks to go private.
The company also added that it is not going to delist its common stock from the Nasdaq Stock Market. "No such discussions are in progress or currently contemplated," Chief Financial Officer Carol Yu said in a statement.
The statement from the company was in response to a report from South China Morning Post, which cited four industry sources, that said Sohu.com was in talks with investment banks about potential financing for a go-private transaction.
The news became public late on Tuesday, resulting in a huge, late-day rally in SOHU. The stock moved from roughly $44 to around $49 on heavy volume in the wake of the report on Tuesday. During Wednesday's trading session, SOHU has given back those gains and was last trading down around 10 percent to $43.90.
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