Seeking Alpha

Qihoo dives after pricing $550M debt offering; Sohu pops on Sogou hopes

Qihoo's (QIHU -6.6%) 2018 convertible notes carry an interest rate of 2.5%, and a conversion price of $110.96 (51% above current levels). (PR)

Goldman estimated (before the deal was priced) the offering would dilute EPS by 4%-6%. The firm thinks Qihoo will use the proceeds " to strengthen its presence in the key strategic areas, such as in mobile gaming and search," to counter the expansion efforts of rivals.

Judging by today's rally in Sohu (SOHU +4.7%) shares, some investors are clearly betting Qihoo will use the funds to strengthen its search presence by acquiring Sohu's Sogou unit, for which Qihoo has already held buyout talks.

Previous: Qihoo announces $550M convertible debt offering

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Comments (1)
  • jerry parker
    , contributor
    Comments (87) | Send Message
    stupid article and totally inaccurate - it's not a "DIVE" as the stock's up $50 in the past year, and today is just getting to the trend line after the spike up this past week.
    28 Aug 2013, 11:42 AM Reply Like
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