Founder of Internet Firm Sohu.com Denies U.S. Delisting Rumors
Charles Zhang, the founder, chairman and CEO of Chinese internet company Sohu.com Limited, on Monday denied rumors of the company’s required delisting from U.S. stock exchanges. On April 12, the company was included in a category of firms designated for “pre-delisting” by the U.S. Securities and Exchange Commission.
“Some online media authors didn’t know the whole process. They write articles to tease Sohu. They also ridicule my live physics class. It is really unnecessary,” Zhang said.
Zhang previously graduated from the Physics Department of Tsinghua University, then obtained his Ph.D. from the Massachusetts Institute of Technology (MIT). In 2016, Zhang launched the first livestreaming show of an English class. On November 5, 2021, he started a livestreaming physics class out of public welfare and interest.
In response to being included in the pre-delisting list, Sohu.com announced on April 13 that it does not intend to contest the SEC’s provisional accreditation. It has tried to explore other actions, but had not yet made determinations. The company cannot assure investors that delisting or other alternatives will not adversely affect the market value of its ADS.
The SEC also said that it is a normal procedure for the U.S. regulatory authorities to implement the Holding Foreign Companies Accountable Act. Whether the listed companies will withdraw from the stock market in the next two years ultimately depends on the progress of Sino-U.S. audit regulatory cooperation.
According to its financial report, Sohu’s total revenue in 2021 was $836 million, up 11% year-on-year, while non-GAAP net profit was $79 million, up 54.9% year-on-year.