It's not easy following Sohu.com (SOHU), given its complex structure as well as the complex deals it gets involved in. One such deal was the selling of a 36.5% interest on Sogou to Tencent. This deal went as follows:
- Tencent paid $448 million for a 36.5% fully-diluted interest in Sogou;
- Sogou paid a special dividend of $301 million to its series A preferred shareholders, including Sohu search, Photon and China Web search;
- Sogou bought back series A preferred shares from Sohu search, Photon (just part of the shareholdings) and China Web search, for a total amount of $147 million;
- So basically all of Tencent's $448 million was paid back to Sogou's series A preferred shareholders.