Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Entity Registrant Name | 'SOHU COM INC |
Entity Central Index Key | '0001104188 |
Current Fiscal Year End Date | '--12-31 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 38,476,961 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,050,362 | $1,287,288 |
Restricted time deposits | 372,058 | 393,087 |
Short-term investments | 0 | 2,827 |
Investments in debt securities | 0 | 82,009 |
Accounts receivable, net | 164,906 | 154,342 |
Prepaid and other current assets | 139,978 | 132,002 |
Total current assets | 1,727,304 | 2,051,555 |
Fixed assets, net | 549,233 | 564,442 |
Goodwill | 207,541 | 208,795 |
Intangible assets, net | 99,926 | 107,108 |
Restricted time deposits | 9,305 | 40,961 |
Prepaid non-current assets | 8,704 | 9,527 |
Other assets | 32,143 | 16,327 |
Total assets | 2,634,156 | 2,998,715 |
LIABILITIES | ' | ' |
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $4,762 and $16,167, respectively, as of June 30, 2014 and December 31, 2013) | 126,059 | 125,896 |
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $75,749 and $79,041, respectively, as of June 30, 2014 and December 31, 2013) | 201,984 | 227,018 |
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $43,050 and $60,140, respectively, as of June 30, 2014 and December 31, 2013) | 102,104 | 113,328 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $3,265 and $3,241, respectively, as of June 30, 2014 and December 31, 2013) | 113,504 | 90,901 |
Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of $6,567 and $7,616, respectively, as of June 30, 2014 and December 31, 2013) | 38,850 | 48,324 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $3,as of both June 30, 2014 and December 31, 2013) | 20,601 | 18,813 |
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both June 30, 2014 and December 31, 2013) | 257,000 | 410,331 |
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $18,620 and $253,933, respectively, as of June 30, 2014 and December 31, 2013) | 66,366 | 79,798 |
Contingent consideration (including contingent consideration of consolidated VIEs without recourse to the Company of $2,867 and nil, respectively, as of June 30, 2014 and December 31, 2013) | 2,867 | 0 |
Total current liabilities | 929,335 | 1,114,409 |
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of $1,554 and $1,621, respectively, as of June 30, 2014 and December 31, 2013) | 5,331 | 6,252 |
Long-term taxes payable (including long-term taxes payable of consolidated VIEs without recourse to the Company of nil as of both June 30, 2014 and December 31, 2013) | 24,820 | 24,835 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Company of $3,106 and $3,777, respectively, as of June 30, 2014 and December 31, 2013) | 11,180 | 12,337 |
Contingent consideration (including contingent consideration of consolidated VIEs without recourse to the Company of $1,498 and $4,162, respectively, as of June 30, 2014 and December 31, 2013) | 1,498 | 4,162 |
Total long-term liabilities | 42,829 | 47,586 |
Total liabilities | 972,164 | 1,161,995 |
Commitments and contingencies | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock: $0.001 par value per share (75,400 shares authorized; 38,477 shares and 38,326 shares, respectively, issued and outstanding as of June 30, 2014 and December 31, 2013) | 44 | 44 |
Additional paid-in capital | 652,185 | 601,633 |
Treasury stock (5,889 shares as of both June 30, 2014 and December 31, 2013) | -143,858 | -143,858 |
Accumulated other comprehensive income | 106,958 | 116,304 |
Retained earnings | 632,638 | 752,582 |
Total Sohu.com Inc. shareholders' equity | 1,247,967 | 1,326,705 |
Noncontrolling interest | 414,025 | 510,015 |
Total shareholders' equity | 1,661,992 | 1,836,720 |
Total liabilities and shareholders' equity | $2,634,156 | $2,998,715 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current liabilities: | ' | ' |
Accounts payable | $126,059 | $125,896 |
Accrued liabilities | 201,984 | 227,018 |
Receipts in advance and deferred revenue | 102,104 | 113,328 |
Accrued salary and benefits | 113,504 | 90,901 |
Taxes payable | 38,850 | 48,324 |
Deferred tax liabilities | 20,601 | 18,813 |
Short-term bank loans | 257,000 | 410,331 |
Other short-term liabilities | 66,366 | 79,798 |
Contingent consideration | 2,867 | 0 |
Noncurrent liabilities: | ' | ' |
Long-term accounts payable | 5,331 | 6,252 |
Long-term taxes payable | 24,820 | 24,835 |
Deferred tax liabilities | 11,180 | 12,337 |
Contingent consideration | 1,498 | 4,162 |
Sohu.com Inc. shareholders' equity: | ' | ' |
Common stock, par value per share (in US dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 75,400 | 75,400 |
Common stock, shares outstanding (in shares) | 38,477 | 38,326 |
Treasury stock, shares (in shares) | 5,889 | 5,889 |
Consolidated VIEs [Member] | ' | ' |
Current liabilities: | ' | ' |
Accounts payable | 4,762 | 16,167 |
Accrued liabilities | 75,749 | 79,041 |
Receipts in advance and deferred revenue | 43,050 | 60,140 |
Accrued salary and benefits | 3,265 | 3,241 |
Taxes payable | 6,567 | 7,616 |
Deferred tax liabilities | 3 | 3 |
Short-term bank loans | 0 | 0 |
Other short-term liabilities | 18,620 | 253,933 |
Contingent consideration | 2,867 | 0 |
Noncurrent liabilities: | ' | ' |
Long-term accounts payable | 1,554 | 1,621 |
Long-term taxes payable | 0 | 0 |
Deferred tax liabilities | 3,106 | 3,777 |
Contingent consideration | $1,498 | $4,162 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Brand advertising | $133,408 | $100,191 | $244,511 | $180,428 |
Search and others | 85,064 | 46,171 | 149,373 | 82,223 |
Subtotal of online advertising revenues | 218,472 | 146,362 | 393,884 | 262,651 |
Online games | 153,877 | 168,295 | 317,265 | 335,716 |
Others | 27,802 | 24,247 | 54,317 | 48,133 |
Total revenues | 400,151 | 338,904 | 765,466 | 646,500 |
Cost of revenues: | ' | ' | ' | ' |
Brand advertising | 82,898 | 51,556 | 147,038 | 96,434 |
Search and others | 40,420 | 24,498 | 72,157 | 45,290 |
Subtotal of cost of online advertising revenues | 123,318 | 76,054 | 219,195 | 141,724 |
Online games | 30,263 | 22,981 | 56,849 | 45,630 |
Others | 16,305 | 14,610 | 32,340 | 29,820 |
Total cost of revenues | 169,886 | 113,645 | 308,384 | 217,174 |
Gross profit | 230,265 | 225,259 | 457,082 | 429,326 |
Operating expenses: | ' | ' | ' | ' |
Product development | 102,218 | 63,361 | 219,940 | 115,180 |
Sales and marketing | 136,606 | 71,678 | 278,960 | 130,401 |
General and administrative | 53,246 | 25,772 | 88,600 | 48,361 |
Total operating expenses | 292,070 | 160,811 | 587,500 | 293,942 |
Operating profit /(loss) | -61,805 | 64,448 | -130,418 | 135,384 |
Other income | 694 | 1,532 | 4,444 | 4,063 |
Net interest income | 8,779 | 5,498 | 17,236 | 12,199 |
Exchange difference | 59 | -1,984 | 637 | -3,969 |
Income /(loss) before income tax expense | -52,273 | 69,494 | -108,101 | 147,677 |
Income tax benefit /(expense) | 1,740 | -16,251 | 1,526 | -36,269 |
Net income /(loss) | -50,533 | 53,243 | -106,575 | 111,408 |
Less: Net income /(loss) attributable to the mezzanine-classified noncontrolling interest shareholders | 0 | 7,112 | 0 | 17,780 |
Net income /(loss) attributable to the noncontrolling interest shareholders | -9,443 | 24,505 | -14,378 | 47,571 |
Deemed dividend to noncontrolling Sogou Series A Preferred shareholders | 0 | 0 | 27,747 | 0 |
Net income /(loss) attributable to Sohu.com Inc. | -41,090 | 21,626 | -119,944 | 46,057 |
Net income /(loss) | -50,533 | 53,243 | -106,575 | 111,408 |
Other comprehensive income /(loss): Foreign currency translation adjustment, net of tax | -255 | 20,429 | -13,079 | 25,232 |
Comprehensive income /(loss) | -50,788 | 73,672 | -119,654 | 136,640 |
Less: Comprehensive income /(loss) attributable to the mezzanine-classified noncontrolling interest shareholders | 0 | 7,112 | 0 | 17,780 |
Comprehensive income /(loss) attributable to noncontrolling interest shareholders | -9,485 | 28,800 | -18,111 | 52,932 |
Deemed dividend to noncontrolling Sogou Series A Preferred shareholders | 0 | 0 | 27,747 | 0 |
Comprehensive income /(loss) attributable to Sohu.com Inc. | ($41,303) | $37,760 | ($129,290) | $65,928 |
Basic net income /(loss) per share attributable to Sohu.com Inc. (in US dollars per share) | ($1.07) | $0.57 | ($3.12) | $1.21 |
Shares used in computing basic net income /(loss) per share attributable to Sohu.com Inc. (in shares) | 38,475 | 38,259 | 38,443 | 38,214 |
Diluted net income /(loss) per share attributable to Sohu.com Inc. (in US dollars per share) | ($1.16) | $0.56 | ($3.18) | $1.16 |
Shares used in computing diluted net income /(loss) per share attributable to Sohu.com Inc. (in shares) | 38,475 | 38,492 | 38,443 | 38,461 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income /(loss) | ($106,575) | $111,408 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 38,751 | 23,833 |
Share-based compensation expense | 14,771 | 2,325 |
Amortization of intangible assets and purchased video content in prepaid expense | 64,562 | 32,309 |
Impairment of intangible assets | 412 | 1,444 |
Provision for allowance for doubtful accounts | 471 | -386 |
Investment income from investments in debt securities | -1,370 | -2,748 |
Change in fair value of put option | -2,304 | 0 |
Others | 1,299 | -1,507 |
Changes in assets and liabilities, net of acquisition: | ' | ' |
Accounts receivable | -12,082 | -38,516 |
Prepaid and other assets | -2,978 | -24,002 |
Accounts payable | -9,168 | 5,534 |
Receipts in advance and deferred revenue | -10,582 | 1,141 |
Taxes payable | -9,337 | 1,744 |
Deferred tax | -17,058 | 6,133 |
Accrued and other short-term liabilities | 20,847 | 33,014 |
Net cash provided by /(used in) operating activities | -30,341 | 151,726 |
Cash flows from investing activities: | ' | ' |
Purchase of noncontrolling interest in 7Road | 0 | -76,010 |
Purchase of fixed assets | -56,070 | -48,655 |
Purchase of intangible and other assets | -54,363 | -38,942 |
Proceeds received from maturity of debt securities | 82,009 | 0 |
Cash received /(paid) related to restricted time deposits | 48,764 | -90,963 |
Proceeds from /(purchase of) short-term investments, net | 2,827 | -40,682 |
Other cash proceeds related to investing activities | 1,687 | 93 |
Net cash provided by /(used in) investing activities | 24,854 | -295,159 |
Cash flows from financing activities: | ' | ' |
Issuance of common stock | 425 | 784 |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | -47,285 | 0 |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | -24,532 | 0 |
Proceeds /(repayments) of loans from offshore banks | -153,193 | 81,000 |
Payment of contingent consideration | -2,813 | -19,736 |
Exercise of share-based awards in subsidiary | 404 | 1,324 |
Proceeds received from early exercise of share-based awards in subsidiary | 0 | 5,278 |
Net cash provided by /(used in) financing activities | -226,994 | 68,650 |
Effect of exchange rate changes on cash and cash equivalents | -4,445 | 11,790 |
Net decrease in cash and cash equivalents | -236,926 | -62,993 |
Cash and cash equivalents at beginning of period | 1,287,288 | 833,535 |
Cash and cash equivalents at end of period | 1,050,362 | 770,542 |
Supplemental cash flow disclosures: | ' | ' |
Barter transactions | 721 | 374 |
Supplemental schedule of non-cash investing activity: | ' | ' |
Consideration payable for purchase of noncontrolling interest in 7Road | 0 | 2,000 |
Changes in government grant in prepaid and other current assets | $0 | $1,066 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
In Thousands | |||||||
Beginning balance at Dec. 31, 2012 | $1,315,217 | $44 | $364,092 | ($143,858) | $79,542 | $784,403 | $230,994 |
Issuance of common stock | 784 | 0 | 784 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 2,286 | 0 | 1,581 | 0 | 0 | 0 | 705 |
Purchase of noncontrolling interest in 7Road | 2,257 | 0 | 1,517 | 0 | 0 | 0 | 740 |
Settlement of share-based awards in subsidiary | 1,323 | 0 | 7,348 | 0 | 0 | 0 | -6,025 |
Net income attributable to Sohu.com Inc. and noncontrolling interest shareholders | 93,628 | 0 | 0 | 0 | 0 | 46,057 | 47,571 |
Foreign currency translation adjustment, net of tax | 25,232 | 0 | 0 | 0 | 19,871 | 0 | 5,361 |
Ending balance at Jun. 30, 2013 | 1,440,727 | 44 | 375,322 | -143,858 | 99,413 | 830,460 | 279,346 |
Beginning balance at Dec. 31, 2013 | 1,836,720 | 44 | 601,633 | -143,858 | 116,304 | 752,582 | 510,015 |
Issuance of common stock | 425 | 0 | 425 | 0 | 0 | 0 | 0 |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | -47,285 | 0 | 26,276 | 0 | 0 | -27,747 | -45,814 |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | -24,532 | 0 | 0 | 0 | 0 | 0 | -24,532 |
Exercise of right to repurchase from China Web | 1,584 | 0 | 1,584 | 0 | 0 | 0 | 0 |
Purchase of equity interests of a VIE from a third party shareholder | -809 | 0 | 11 | 0 | 0 | 0 | -820 |
Share-based compensation expense | 14,753 | 0 | 11,029 | 0 | 0 | 0 | 3,724 |
Settlement of share-based awards in subsidiary | 790 | 0 | 11,227 | 0 | 0 | 0 | -10,437 |
Net income attributable to Sohu.com Inc. and noncontrolling interest shareholders | -106,575 | 0 | 0 | 0 | 0 | -92,197 | -14,378 |
Foreign currency translation adjustment, net of tax | -13,079 | 0 | 0 | 0 | -9,346 | 0 | -3,733 |
Ending balance at Jun. 30, 2014 | $1,661,992 | $44 | $652,185 | ($143,858) | $106,958 | $632,638 | $414,025 |
The_Company_and_Basis_of_Prese
The Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
The Company and Basis of Presentation [Abstract] | ' |
The Company and Basis of Presentation | ' |
1. The Company and Basis of Presentation | |
Nature of Operations | |
Sohu.com Inc. (“Sohu” or the “Company”), a Delaware corporation organized in 1996, is a leading Chinese online media, search and game service group providing comprehensive online products and services on PCs and mobile devices in the People’s Republic of China (the “PRC” or “China”). The Company, together with its wholly-owned and majority-owned subsidiaries and variable interest entities (collectively the “Sohu Group” or the “Group”), mainly offers online advertising services and online game services. | |
Online advertising and online games are the core businesses of the Sohu Group. | |
Online Advertising | |
The online advertising business consists of the brand advertising business as well as the search and others business. | |
Brand Advertising Business | |
The Sohu Group’s brand advertising business offers to its users, over its matrices of Chinese language online media content and services, various products and services (such as free of charge content, including news, video, interactive community and other competitive Internet services and membership services) across multiple Internet-enabled devices, such as PCs, mobile phones and tablets. It also offers advertisements on Sohu Group Web properties to companies seeking to increase their brand awareness online. | |
Search and Others Business | |
The search and others business, provided by Sohu’s search subsidiary Sogou Inc. (“Sogou”), primarily offers customers pay-for-click services, as well as online marketing services on the Sogou Web Directory. | |
On September 16, 2013, pursuant to a Subscription Agreement entered into on that date by and among Sogou, THL A21 Limited, a wholly-owned subsidiary of Tencent Holdings Limited (Tencent Holdings Limited together with its subsidiaries, “Tencent”); Sohu’s wholly-owned subsidiary Sohu.com (Search) Limited, a Cayman Islands company (“Sohu Search”); and Photon Group Limited (“Photon”), the investment vehicle of the Sohu Group’s Chairman and Chief Executive Officer Dr. Charles Zhang, and a series of other contracts also entered into on that date between Sogou and Tencent, Tencent invested a net amount of $448 million in cash in Sogou and transferred its Soso search-related businesses and certain other assets to Sogou (collectively, the “Sogou-Tencent Transactions”). | |
On September 16, 2013, Sogou entered into (i) a Repurchase Option Agreement with Sohu Search, exercisable commencing March 16, 2014, granting to Sogou the right to purchase 24 million Series A Preferred Shares of Sogou held by Sohu Search for an aggregate purchase price of $78.8 million; (ii) a Repurchase Option Agreement with Photon, also exercisable commencing March 16, 2014, granting to Sogou the right to purchase 6.4 million Series A Preferred Shares of Sogou held by Photon for an aggregate purchase price of $21 million; and (iii) a Repurchase/Put Option Agreement with China Web Search (HK) Limited (“China Web”), an investment vehicle of Yunfeng Capital, granting to Sogou the right to purchase at any time from March 16, 2014 to July 31, 2014, and granting to China Web the right to put to Sogou at any time prior to July 31, 2014, 14.4 million Series A Preferred Shares of Sogou held by China Web for an aggregate purchase price of $47.3 million. | |
On September 16, 2013, Sogou, Sohu Search, Photon, Mr. Xiaochuan Wang, four other members of Sogou’s management (collectively, the “Sohu Parties”) and Tencent entered into a Shareholders Agreement (the “Shareholders Agreement”) under which the parties agreed to vote their Sogou voting shares in all elections of directors to elect three designees of Sohu Search and two designees of Tencent. | |
On September 17, 2013, Sogou paid a special dividend to the three holders of Series A Preferred Shares of Sogou in the aggregate amount of $301 million, of which Sohu Search received $161 million, Photon received $43 million, and China Web received $97 million. | |
On December 2, 2013, Tencent invested $1.5 million in cash in Beijing Sogou Information Service Co., Ltd. (“Sogou Information”), a VIE of Sogou, as additional consideration in connection with the Sogou-Tencent Transactions. | |
On March 24, 2014, Sogou purchased from China Web, pursuant to the Repurchase/Put Option Agreement between Sogou and China Web, 14.4 million Series A Preferred Shares of Sogou, for an aggregate purchase price of $47.3 million. | |
In June 2014, Sogou repurchased approximately 4.2 million of its Class A Ordinary Shares from non-controlling shareholders, some of whom are employees of the Group, for an aggregate purchase price of $41.6 million. | |
Pursuant to the Shareholders Agreement, Sohu will hold approximately 53% of the total voting power for the election of the Board of Directors of Sogou, assuming that the remaining repurchase options are exercised, Tencent’s non-voting Class B Ordinary Shares are converted to voting shares, and all share options under the Sogou 2010 Share Incentive Plan and all share options under an arrangement providing for Sogou share-based awards to be available for grants to Sohu management and key employees (the “Sohu Management Sogou Share Option Arrangement”) are granted and exercised. As Sohu is the controlling shareholder of Sogou, Sohu consolidates Sogou in the Sohu Group’s consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu. | |
Online Games | |
The online game business is conducted by Sohu’s majority-owned subsidiary Changyou.com Limited (“Changyou”). Changyou is a leading online game developer and operator in China as measured by the popularity of its massively multiplayer online game (“MMOG”) Tian Long Ba Bu (“TLBB”) and its Web games DDTank and Wartune (also known as “Shen Qu”), which Changyou developed in-house. Changyou engages in the development, operation and licensing of online games for PCs and mobile devices. Changyou’s online games include MMOGs, which are interactive online games that may be played simultaneously by hundreds of thousands of game players, Web games, which are played over the Internet using a Web browser, and mobile games, which are played on mobile devices with an Internet connection. | |
Basis of Consolidation and Recognition of Noncontrolling Interest | |
The consolidated financial statements include the accounts of Sohu and its wholly-owned and majority-owned subsidiaries and consolidated VIEs. All intercompany transactions are eliminated. | |
VIE Consolidation | |
The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. The Sohu Group has two VIEs that are not consolidated, since the Group is not the primary beneficiary. | |
Noncontrolling Interest Recognition | |
Noncontrolling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. | |
Basis of Presentation | |
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
The accompanying unaudited condensed consolidated interim financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results for the interim periods presented. Results for the six months ended June 30, 2014 are not necessarily indicative of the results expected for the full fiscal year or for any future period. | |
Reclassification of Mobile Business to Others Business | |
Commencing in the first quarter of 2014, the Group reclassified the mobile business to the others business, because the Group did not consider the mobile business to be significant enough to constitute a separately-disclosed revenue stream. The mobile business offers mobile related services through mobile products to mobile phone users through cooperation with China mobile network operators. The mobile products consist primarily of short messaging services (“SMS”), mobile video, ring-back tones (“RBT”), and interactive voice response (“IVR”). A majority of the content is purchased from third-party content providers. To conform to current period presentations, certain comparative figures for prior periods have been reclassified accordingly. Such reclassifications amounted to $15.3 million and $29.1 million, respectively, for revenues and $9.0 million and $18.2 million, respectively, for costs for the three months and six months ended June 30, 2013. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||
2. Segment Information | |||||||||||||||||||||||||||||
The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. Some items, such as share-based compensation expense, operating expenses, other income and expense, and income tax expense, are not reviewed by the CODM. These items are disclosed in the segment information for reconciliation purposes only. | |||||||||||||||||||||||||||||
In connection with the reclassification of the mobile business to the others business, as the CODM no longer reviewed the mobile business as a separate segment, the Group reclassified the mobile segment to the others segment from the first quarter of 2014. There are four reportable segments in the Group, consisting of brand advertising, Sogou (which mainly consists of search and others business), Changyou (which mainly consists of the online game business) and others business. The Group has restated the presentation of its reportable segments for prior periods to conform to the current presentation. | |||||||||||||||||||||||||||||
The following tables present summary information by reportable segment (in thousands): | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 121,685 | $ | 13,400 | $ | 135,085 | $ | 90,951 | $ | 177,781 | $ | (3,666 | ) | $ | 400,151 | ||||||||||||||
Segment cost of revenues | (78,582 | ) | (6,815 | ) | (85,397 | ) | (39,988 | ) | (43,519 | ) | 217 | (168,687 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 43,103 | $ | 6,585 | 49,688 | 50,963 | 134,262 | (3,449 | ) | 231,464 | |||||||||||||||||||
SBC (2) in cost of revenues | (700 | ) | (482 | ) | (17 | ) | 0 | (1,199 | ) | ||||||||||||||||||||
Gross profit | 48,988 | 50,481 | 134,245 | (3,449 | ) | 230,265 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (21,825 | ) | (25,286 | ) | (48,977 | ) | 1,164 | (94,924 | ) | ||||||||||||||||||||
Sales and marketing | (54,494 | ) | (14,309 | ) | (69,387 | ) | 3,695 | (134,495 | ) | ||||||||||||||||||||
General and administrative | (12,075 | ) | (2,590 | ) | (22,452 | ) | (168 | ) | (37,285 | ) | |||||||||||||||||||
SBC (2) in operating expenses | (4,770 | ) | (20,603 | ) | (441 | ) | 448 | (25,366 | ) | ||||||||||||||||||||
Total operating expenses | (93,164 | ) | (62,788 | ) | (141,257 | ) | 5,139 | (292,070 | ) | ||||||||||||||||||||
Operating profit /(loss) | (44,176 | ) | (12,307 | ) | (7,012 | ) | 1,690 | (61,805 | ) | ||||||||||||||||||||
Other income /(expense) | 1,399 | 103 | 434 | (1,242 | ) | 694 | |||||||||||||||||||||||
Net interest income | 2,635 | 402 | 5,742 | 0 | 8,779 | ||||||||||||||||||||||||
Exchange difference | (14 | ) | (78 | ) | 151 | 0 | 59 | ||||||||||||||||||||||
Income /(loss) before income tax expense | (40,156 | ) | (11,880 | ) | (685 | ) | 448 | (52,273 | ) | ||||||||||||||||||||
Income tax (expense) /benefit | (452 | ) | 0 | 2,192 | 0 | 1,740 | |||||||||||||||||||||||
Net income /(loss) | $ | (40,608 | ) | $ | (11,880 | ) | $ | 1,507 | $ | 448 | $ | (50,533 | ) | ||||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 92,298 | $ | 17,837 | $ | 110,135 | $ | 49,874 | $ | 182,371 | $ | (3,476 | ) | $ | 338,904 | ||||||||||||||
Segment cost of revenues | (48,372 | ) | (9,800 | ) | (58,172 | ) | (24,495 | ) | (30,976 | ) | 96 | (113,547 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 43,926 | $ | 8,037 | 51,963 | 25,379 | 151,395 | (3,380 | ) | 225,357 | |||||||||||||||||||
SBC (2) in cost of revenues | (60 | ) | (3 | ) | (35 | ) | 0 | (98 | ) | ||||||||||||||||||||
Gross profit | 51,903 | 25,376 | 151,360 | (3,380 | ) | 225,259 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (22,115 | ) | (14,650 | ) | (26,188 | ) | 0 | (62,953 | ) | ||||||||||||||||||||
Sales and marketing | (46,960 | ) | (9,447 | ) | (18,450 | ) | 3,380 | (71,477 | ) | ||||||||||||||||||||
General and administrative | (9,699 | ) | (2,428 | ) | (13,113 | ) | 0 | (25,240 | ) | ||||||||||||||||||||
SBC (2) in operating expenses | (535 | ) | (261 | ) | (347 | ) | 2 | (1,141 | ) | ||||||||||||||||||||
Total operating expenses | (79,309 | ) | (26,786 | ) | (58,098 | ) | 3,382 | (160,811 | ) | ||||||||||||||||||||
Operating profit /(loss) | (27,406 | ) | (1,410 | ) | 93,262 | 2 | 64,448 | ||||||||||||||||||||||
Other income /(expense) | 937 | 82 | 513 | 0 | 1,532 | ||||||||||||||||||||||||
Net interest income | 1,171 | 272 | 4,055 | 0 | 5,498 | ||||||||||||||||||||||||
Exchange difference | (458 | ) | 143 | (1,669 | ) | 0 | (1,984 | ) | |||||||||||||||||||||
Income /(loss) before income tax expense | (25,756 | ) | (913 | ) | 96,161 | 2 | 69,494 | ||||||||||||||||||||||
Income tax (expense) /benefit | (2,366 | ) | (6 | ) | (13,879 | ) | 0 | (16,251 | ) | ||||||||||||||||||||
Net income /(loss) | $ | (28,122 | ) | $ | (919 | ) | $ | 82,282 | $ | 2 | $ | 53,243 | |||||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 226,255 | $ | 26,814 | $ | 253,069 | $ | 160,923 | $ | 358,534 | $ | (7,060 | ) | $ | 765,466 | ||||||||||||||
Segment cost of revenues | (139,451 | ) | (14,049 | ) | (153,500 | ) | (71,689 | ) | (82,663 | ) | 453 | (307,399 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 86,804 | $ | 12,765 | 99,569 | 89,234 | 275,871 | (6,607 | ) | 458,067 | |||||||||||||||||||
SBC (2) in cost of revenues | (344 | ) | (513 | ) | (128 | ) | 0 | (985 | ) | ||||||||||||||||||||
Gross profit | 99,225 | 88,721 | 275,743 | (6,607 | ) | 457,082 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (44,332 | ) | (49,469 | ) | (118,535 | ) | 2,343 | (209,993 | ) | ||||||||||||||||||||
Sales and marketing | (107,938 | ) | (25,349 | ) | (149,960 | ) | 7,101 | (276,146 | ) | ||||||||||||||||||||
General and administrative | (21,390 | ) | (5,187 | ) | (43,620 | ) | (344 | ) | (70,541 | ) | |||||||||||||||||||
SBC (2) in operating expenses | (7,515 | ) | (23,429 | ) | (637 | ) | 761 | (30,820 | ) | ||||||||||||||||||||
Total operating expenses | (181,175 | ) | (103,434 | ) | (312,752 | ) | 9,861 | (587,500 | ) | ||||||||||||||||||||
Operating profit /(loss) | (81,950 | ) | (14,713 | ) | (37,009 | ) | 3,254 | (130,418 | ) | ||||||||||||||||||||
Other income /(expense) | 3,427 | 2,459 | 1,051 | (2,493 | ) | 4,444 | |||||||||||||||||||||||
Net interest income | 4,549 | 854 | 11,833 | 0 | 17,236 | ||||||||||||||||||||||||
Exchange difference | (88 | ) | (163 | ) | 888 | 0 | 637 | ||||||||||||||||||||||
Income /(loss) before income tax expense | (74,062 | ) | (11,563 | ) | (23,237 | ) | 761 | (108,101 | ) | ||||||||||||||||||||
Income tax (expense) /benefit | (3,349 | ) | 0 | 4,875 | 0 | 1,526 | |||||||||||||||||||||||
Net income /(loss) | $ | (77,411 | ) | $ | (11,563 | ) | $ | (18,362 | ) | $ | 761 | $ | (106,575 | ) | |||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 167,966 | $ | 36,240 | $ | 204,206 | $ | 89,204 | $ | 359,956 | $ | (6,866 | ) | $ | 646,500 | ||||||||||||||
Segment cost of revenues | (90,593 | ) | (20,343 | ) | (110,936 | ) | (45,285 | ) | (61,005 | ) | 220 | (217,006 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 77,373 | $ | 15,897 | 93,270 | 43,919 | 298,951 | (6,646 | ) | 429,494 | |||||||||||||||||||
SBC (2) in cost of revenues | (138 | ) | (5 | ) | (25 | ) | 0 | (168 | ) | ||||||||||||||||||||
Gross profit | 93,132 | 43,914 | 298,926 | (6,646 | ) | 429,326 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (40,808 | ) | (27,431 | ) | (46,183 | ) | 0 | (114,422 | ) | ||||||||||||||||||||
Sales and marketing | (87,833 | ) | (17,374 | ) | (31,467 | ) | 6,646 | (130,028 | ) | ||||||||||||||||||||
General and administrative | (17,450 | ) | (4,068 | ) | (25,817 | ) | 0 | (47,335 | ) | ||||||||||||||||||||
SBC (2) in operating expenses | (1,159 | ) | (411 | ) | (589 | ) | 2 | (2,157 | ) | ||||||||||||||||||||
Total operating expenses | (147,250 | ) | (49,284 | ) | (104,056 | ) | 6,648 | (293,942 | ) | ||||||||||||||||||||
Operating profit /(loss) | (54,118 | ) | (5,370 | ) | 194,870 | 2 | 135,384 | ||||||||||||||||||||||
Other income /(expense) | 2,161 | 86 | 1,816 | 0 | 4,063 | ||||||||||||||||||||||||
Net interest income | 3,638 | 606 | 7,955 | 0 | 12,199 | ||||||||||||||||||||||||
Exchange difference | (582 | ) | 147 | (3,534 | ) | 0 | (3,969 | ) | |||||||||||||||||||||
Income /(loss) before income tax expense | (48,901 | ) | (4,531 | ) | 201,107 | 2 | 147,677 | ||||||||||||||||||||||
Income tax (expense) /benefit | (5,751 | ) | (6 | ) | (30,512 | ) | 0 | (36,269 | ) | ||||||||||||||||||||
Net income /(loss) | $ | (54,652 | ) | $ | (4,537 | ) | $ | 170,595 | $ | 2 | $ | 111,408 | |||||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||
Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||||
Advertising | |||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 494,051 | $ | 163,090 | $ | 393,221 | $ | 0 | $ | 1,050,362 | |||||||||||||||||||
Accounts receivable, net | 107,497 | 19,902 | 37,599 | (92 | ) | 164,906 | |||||||||||||||||||||||
Fixed assets, net | 254,225 | 47,347 | 247,661 | 0 | 549,233 | ||||||||||||||||||||||||
Total assets (1) | $ | 1,138,858 | $ | 252,290 | $ | 1,397,671 | $ | (154,663 | ) | $ | 2,634,156 | ||||||||||||||||||
Note (1): | The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||||
Advertising | |||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 498,058 | $ | 240,746 | $ | 548,484 | $ | 0 | $ | 1,287,288 | |||||||||||||||||||
Accounts receivable, net | 102,823 | 15,705 | 35,996 | (182 | ) | 154,342 | |||||||||||||||||||||||
Fixed assets, net | 257,307 | 60,461 | 246,674 | 0 | 564,442 | ||||||||||||||||||||||||
Total assets (1) | $ | 1,221,003 | $ | 350,256 | $ | 1,585,212 | $ | (157,756 | ) | $ | 2,998,715 | ||||||||||||||||||
Note (1): | The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. |
ShareBased_Compensation_Expens
Share-Based Compensation Expense | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Share-Based Compensation Expense [Abstract] | ' | ||||||||||||||||
Share-Based Compensation Expense | ' | ||||||||||||||||
3. Share-Based Compensation Expense | |||||||||||||||||
Sohu, Changyou, Sogou, and Fox Video Limited (“Sohu Video”) have incentive plans, and prior to June 28, 2013 7Road.com Limited (“7Road”) had an incentive plan, for the granting of share-based awards, including common stock or ordinary shares, share options, restricted shares and restricted share units, to their executive officers, management and employees. | |||||||||||||||||
Sohu, Changyou, and Sogou Share-based Awards | |||||||||||||||||
For Sohu, Changyou and Sogou, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, share-based compensation expense is recognized by Sogou in the consolidated statements of comprehensive income based on the then-current fair value at each reporting date. For Sogou Class A Ordinary Shares repurchased from employees of the Group in the second quarter of 2014, share-based compensation expense is recognized by the Sohu Group in the consolidated statements of comprehensive income in an amount equal to the excess of the repurchase price over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11—Sohu.com Inc. Shareholders’ Equity. | |||||||||||||||||
Share-based compensation expense is charged to the shareholders’ equity or noncontrolling interest section in the consolidated balance sheets. | |||||||||||||||||
Sohu Video Share-based Awards | |||||||||||||||||
On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video to management and key employees of the video division and to Sohu management. As of June 30, 2014, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been made, of which options for the purchase of 4,972,800 ordinary shares were vested. | |||||||||||||||||
For purposes of ASC 718-10-25, no grant date may be established until a mutual understanding can be reached between Sohu Video and the recipients as to the option awards’ key terms and conditions, and such mutual understanding cannot be reached until the fair value of the awards is determinable and can be accounted for. No grant date could be determined as of June 30, 2014, because the broader terms and conditions of the option awards had neither been finalized nor mutually agreed upon with the recipients. | |||||||||||||||||
Under ASC 718-10-55, if the service inception date precedes the grant date for equity-classified awards, compensation expense should be accrued beginning on the service inception date and re-measured on each subsequent reporting date before the grant date, based on the estimated fair value of the awards. The estimate of the awards’ fair value would be fixed in the period in which the grant date occurs, and cumulative compensation expense should be adjusted based on the fair value at the grant date. Management determined that the service inception date with respect to vested option awards for the purchase of 4,972,800 shares had preceded the grant date. | |||||||||||||||||
As of June 30, 2014, $4.2 million in cumulative share-based compensation expense was recognized as costs and expenses for these vested awards in the consolidated statements of comprehensive income based on the fair value of the awards on June 30, 2014. | |||||||||||||||||
7Road Share-based Awards | |||||||||||||||||
On July 10, 2012, 7Road adopted the 2012 Share Incentive Plan (the “7Road 2012 Share Incentive Plan”), which initially provided for the issuance to selected directors, officers, employees, consultants and advisors of 7Road of up to 5,100,000 ordinary shares of 7Road (amounting to 5.1% of the then outstanding 7Road shares on a fully-diluted basis). On November 2, 2012, 7Road’s Board of Directors and its shareholders approved an increase from 5,100,000 to 15,100,000 ordinary shares (amounting to 13.7% of the then outstanding 7Road shares on a fully-diluted basis) under the 7Road 2012 Share Incentive Plan. | |||||||||||||||||
On May 1, 2013, Changyou entered into an agreement with noncontrolling shareholders to acquire all of the outstanding ordinary shares of 7Road held by the noncontrolling shareholders. The acquisition closed on June 5, 2013. | |||||||||||||||||
On June 28, 2013, 7Road’s Board of Directors approved the cancellation of the 7Road 2012 Share Incentive Plan. 7Road concurrently offered to a total of 42 7Road employees holding an aggregate of 2,223,750 restricted share units which had been granted under the 7Road 2012 Share Incentive Plan the right to exchange their restricted share units for, at each employee’s election, in each case subject to the employee’s continued employment by 7Road, either (i) Scheme I: the right to a cash payment of up to an aggregate of $2.90 per restricted share unit exchanged, vesting and payable at the rate of 40%, 30% and 30%, respectively, on the first, second and third anniversaries of July 18, 2012, which is the date when the surrendered restricted share units were granted under the 7Road 2012 Share Incentive Plan, or (ii) Scheme II: the right to receive an annual cash bonus, over a seven-year period commencing July 1, 2013, based on the adjusted annual cumulative net income of 7Road. All restricted share units held by these 42 holders under the 7Road 2012 Share Incentive Plan as of June 28, 2013 were included in this exchange program. | |||||||||||||||||
In the third quarter of 2013, 7Road granted to an additional 48 7Road employees the right to receive an annual cash bonus under Scheme II with the same terms as described above. | |||||||||||||||||
As the original awards of restricted share units made under the 7Road 2012 Share Incentive Plan included as a vesting condition the completion of an initial public offering, which is not considered probable until it occurs, no share-based compensation expense was recognized for the fair value of the original awards. Incremental compensation expense, which is not classified as share-based compensation expense, is equal to the fair values of the two new compensation schemes included in the exchange program as of the date of the modification resulting from the exchange program. | |||||||||||||||||
For Scheme I, incremental compensation expense in the total amount of $5.3 million resulting from the modification will be recognized in the consolidated statements of comprehensive income ratably over the remaining vesting period of the awards for each tranche. For Scheme II, the incremental compensation expense varies depending on 7Road’s financial performance. | |||||||||||||||||
Share-based Compensation Expense Recognition | |||||||||||||||||
Share-based compensation expense was recognized in costs and expenses for the three and six months ended June 30, 2014 and 2013, respectively, as follows (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Share-based compensation expense | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenues | $ | 1,199 | $ | 98 | $ | 985 | $ | 168 | |||||||||
Product development expenses | 7,294 | 408 | 9,947 | 758 | |||||||||||||
Sales and marketing expenses | 2,111 | 201 | 2,814 | 373 | |||||||||||||
General and administrative expenses | 15,962 | 532 | 18,060 | 1,026 | |||||||||||||
$ | 26,566 | $ | 1,239 | $ | 31,806 | $ | 2,325 | ||||||||||
Share-based compensation expense was recognized for share awards of Sohu, Changyou, Sogou and Sohu Video as follows (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Share-based compensation expense | 2014 | 2013 | 2014 | 2013 | |||||||||||||
For Sohu share-based awards | $ | 1,277 | $ | 722 | $ | 3,905 | $ | 1,583 | |||||||||
For Changyou share-based awards | 459 | 363 | 739 | 572 | |||||||||||||
For Sogou share-based awards (1) | 20,603 | 154 | 22,935 | 170 | |||||||||||||
For Sohu Video share-based awards | 4,227 | 0 | 4,227 | 0 | |||||||||||||
$ | 26,566 | $ | 1,239 | $ | 31,806 | $ | 2,325 | ||||||||||
Note (1): | Includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11—Sohu.com Inc. Shareholders’ Equity. | ||||||||||||||||
There was no share-based compensation expense recognized for the share-based awards of 7Road for any of the periods presented in the above table. | |||||||||||||||||
There was no capitalized share-based compensation expense for the three and six months ended June 30, 2014 and 2013. |
Changyou_Employee_Incentive_Pl
Changyou Employee Incentive Plans | 6 Months Ended |
Jun. 30, 2014 | |
Changyou Employee Incentive Plans [Abstract] | ' |
Changyou Employee Incentive Plans | ' |
4. Changyou Employee Incentive Plans | |
On February 8, 2014, Changyou’s Board of Directors approved three new employee incentive plans with terms of 10 years, effective January 1, 2014, under which Changyou may pay compensation to employees based on Changyou’s profits, or the profits of specified projects. Eligible employees will receive a cash award from the plans as a bonus based on the number of employee incentive instruments they hold in the plans. | |
Under two of these three plans, Changyou may pay compensation to employees based on Changyou’s profits. Changyou will distribute to eligible employees who participate in the plans up to 5% of Changyou’s annual adjusted net profits. Combined, these two plans will distribute up to 10% of Changyou’s annual adjusted net profits. Eligible employees will participate in these plans by paying an amount to purchase instruments that will entitle them, while they are employed by Changyou, to receive annual compensation under the plans. After four years of service to Changyou, employees who participate in either of these two plans will be entitled to sell their instruments to other employees at any time during their employment with Changyou at a price negotiated between the two employees, and by doing so would be compensated with the present value of their expected future cash bonuses for the remaining period of the incentive plans. Management concluded that compensation expense associated with these two plans should be accounted for by analogy to deferred compensation arrangements, and that the present value of the amounts forecasted to be distributed under the plans should be amortized over the first four years after the effective date of the plans, before the instruments are first allowed to be transferred to other employees; that the present value of future cash bonuses in the remaining period should be re-measured at each reporting date; that the gain or loss resulting from the re-measurement in the first four years should be amortized over the remaining portion of the four-year period; and that the gain or loss after the four-year period should be booked immediately upon re-measurement at each reporting date after the four-year period. For the three and six months ended June 30, 2014, compensation expense recognized for these two plans was $1.5 million and $2.8 million, respectively. | |
The third employee incentive plan is structured to allow eligible employees to receive up to 20% of the annual adjusted net profits of projects that they work on. Unlike under the first two plans, certain of the incentive instruments to be issued under this plan will permit participating employees to sell the instruments to other employees at any time during their employment, and certain of the incentive instruments will not permit participating employees to sell their instruments to other employees. Management concluded that compensation expense in the former case should be accounted for by analogy to deferred compensation arrangements, and accordingly should be accrued as of the effective date of the plan at the then present value of the amounts forecasted to be distributed under the plan; that the gain or loss resulting from the re-measurement of the cash bonus in the remaining period of the plan should be booked immediately upon re-measurement; and that compensation expense in the latter case should be recognized when the amount of relevant distributions under these plans is determined and Changyou’s obligations are established each year. For the three and six months ended June 30, 2014, compensation expense recognized for this plan was $1.5 million and $26.7 million, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
5. Fair Value Measurements | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: | |||||||||||||||||
Level 1—observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2—include other inputs that are directly or indirectly observable in the market place. | |||||||||||||||||
Level 3—unobservable inputs which are supported by little or no market activity. | |||||||||||||||||
The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of June 30, 2014 (in thousands): | |||||||||||||||||
Fair value measurements at reporting date using | |||||||||||||||||
Items | As of | Quoted Prices | Significant | Significant | |||||||||||||
June 30, | in Active Markets | Other | Unobservable | ||||||||||||||
2014 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Cash equivalents | $ | 411,671 | $ | 0 | $ | 411,671 | $ | 0 | |||||||||
Restricted time deposits | 381,363 | 0 | 381,363 | 0 | |||||||||||||
Total Assets | $ | 793,034 | $ | 0 | $ | 793,034 | $ | 0 | |||||||||
The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 (in thousands): | |||||||||||||||||
Fair value measurements at reporting date using | |||||||||||||||||
Items | As of | Quoted Prices | Significant | Significant | |||||||||||||
December 31, | in Active Markets | Other | Unobservable | ||||||||||||||
2013 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Cash equivalents | $ | 359,289 | $ | 0 | $ | 359,289 | $ | 0 | |||||||||
Restricted time deposits | 434,048 | 0 | 434,048 | 0 | |||||||||||||
Short-term investments | 2,827 | 0 | 2,827 | 0 | |||||||||||||
Investments in debt securities | 82,009 | 0 | 0 | 82,009 | |||||||||||||
Total Assets | $ | 878,173 | $ | 0 | $ | 796,164 | $ | 82,009 | |||||||||
Put option recognized as other short-term liability | $ | 3,888 | $ | 0 | $ | 0 | $ | 3,888 | |||||||||
The following table sets forth the reconciliation of the fair value measurements using significant unobservable inputs (level 3) from December 31, 2013 to June 30, 2014 (in thousands): | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Significant Unobservable Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Debt Securities | Put Option | ||||||||||||||||
Beginning balance at December 31, 2013 | $ | 82,009 | $ | 3,888 | |||||||||||||
Transactions: | |||||||||||||||||
Change in fair value | 0 | (2,304 | ) | ||||||||||||||
Currency translation adjustment | (736 | ) | 0 | ||||||||||||||
Financial instruments matured /exercised | (81,273 | ) | (1,584 | ) | |||||||||||||
Ending balance at June 30, 2014 | $ | 0 | $ | 0 | |||||||||||||
Cash Equivalents | |||||||||||||||||
The Sohu Group’s cash equivalents mainly consist of time deposits and money market funds with original maturities of three months or less. The fair value of cash equivalents are determined based on the pervasive interest rates in the market. The Group classifies the valuation techniques that use the pervasive interest rates input as Level 2 of fair value measurements. Generally there are no quoted prices in active markets for identical cash equivalents at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method and observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||
Restricted Time Deposits | |||||||||||||||||
Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. | |||||||||||||||||
Changyou Loans from Offshore Banks, Secured by Time Deposits | |||||||||||||||||
In 2012 and 2013, Changyou drew down loans from offshore branches of certain banks for the purposes of expediting the payment of a special one-time cash dividend to its shareholders, providing working capital to support its overseas operations, and funding its acquisitions and its share repurchase program. These bank loans are secured by an equivalent or greater amount of RMB deposits by Changyou in the onshore branches of such banks. The loans from the offshore branches of the lending banks are classified as short-term bank loans or long-term bank loans according to their payment terms. | |||||||||||||||||
As of June 30, 2014, the total amount of the bank loans was $257 million, all of which carried a floating rate of interest based on the London Inter-Bank Offered Rate (“LIBOR”). For the three and six months ended June 30, 2014, interest income from the restricted time deposits securing the loans was $3.7 million and $7.9 million, respectively, and interest expense on the bank loans was $1.2 million and $2.9 million, respectively. For the three and six months ended June 30, 2013, interest income from the restricted time deposits securing the loans was $3.1 million and $5.9 million, respectively, and interest expense on the bank loans was $2.2 million and $4.1 million, respectively. | |||||||||||||||||
Collateral related to Sogou Incentive Shares Trust Arrangements | |||||||||||||||||
In February 2013, Sohu deposited $9 million in cash into restricted time deposit accounts at a bank as collateral for credit facilities provided by the bank to certain Sogou employees. The facilities were intended to fund the employees’ early exercise of Sogou share options and related PRC individual income tax. Sohu is not subject to any additional potential payments other than the restricted time deposit amounts, and believes that the fair value of its guarantee liability is immaterial. | |||||||||||||||||
Short-term Investments | |||||||||||||||||
In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income as other income /(expense). To estimate fair value, the Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. | |||||||||||||||||
As of June 30, 2014, the Sohu Group’s investment in financial instruments was nil. For the three and six months ended June 30, 2014, the Sohu Group recorded in the consolidated statements of comprehensive income change in the fair value of short-term investments in the amount of nil and $16,000, respectively. For the three and six months ended June 30, 2013, the Group recorded in the consolidated statements of comprehensive income change in the fair value of short-term investments in the amount of $0.8 million and $1.5 million, respectively. | |||||||||||||||||
Investments in Debt Securities | |||||||||||||||||
In September 2010, Sohu purchased from a PRC-based company (the “Debtor”) a convertible debt security in the principal amount of $74.6 million (or RMB0.5 billion) with interest, payable quarterly in cash, of 3.8% per annum and an initial maturity of twelve months, subject to extension in Sohu’s sole discretion for additional six-month periods. The Debtor’s obligations on the debt were secured by a pledge from the Debtor’s parent company of its entire equity interest in the Debtor. The Company extended the maturity of the security, at an interest rate of 6.8% per annum, for successive six-month periods through March 2014. Under the terms of the security, the Company had the option, exercisable on March 31, 2014, to convert the outstanding principal into fixed percentages of equity interests in two companies which are affiliates of the Debtor. On March 31, 2014, the Company neither extended the debt security nor exercised the option, and accordingly the $81.3 million (or RMB0.5 billion) principal amount of the security was repaid to the Company on that date. | |||||||||||||||||
For the three and six months ended June 30, 2014, interest income generated from this debt security amounted to nil and $1.37 million, respectively. For the three and six months ended June 30, 2013, interest income generated from this debt security amounted to $1.39 million and $2.74 million, respectively. | |||||||||||||||||
The Sohu Group elected the fair value option to account for its investments in debt securities at their initial recognition. Changes in fair value were recognized in other income /(expense). For the three and six months ended June 30, 2014 and 2013, there was no change in fair value. To estimate fair value, the Group used the income approach, which considers the estimated future return from the investment and the probabilities of getting these returns. The Group classifies the valuation techniques that use these inputs as Level 3 of fair value measurements. | |||||||||||||||||
Repurchase Options and Put Option for Sogou Series A Preferred Shares | |||||||||||||||||
As discussed in Note 1—The Company and Basis of Presentation, in September 2013, Sogou entered into Repurchase Option Agreements with Sohu Search and Photon, and a Repurchase/Put Option Agreement with China Web, with respect to Series A Preferred Shares of Sogou held by them. On March 24, 2014, Sogou purchased from China Web, pursuant to the Repurchase/Put Option Agreement between Sogou and China Web, 14.4 million Series A Preferred Shares of Sogou, for an aggregate purchase price of $47.3 million. | |||||||||||||||||
Sogou’s repurchase options with Photon and China Web were initially recognized in additional paid-in capital in the Sohu Group’s consolidated balance sheets at fair value when the agreements were signed. Any subsequent changes in the fair values of the repurchase options were not and will not be recognized. On March 24, 2014, the repurchase option with China Web was exercised by Sogou. As of June 30, 2014, the remaining balance for the repurchase option with Photon in additional paid-in capital was $1.2 million, based on the fair value of the repurchase option on September 16, 2013. | |||||||||||||||||
China Web’s put option with Sogou was initially recognized in other short-term liabilities in the Sohu Group’s consolidated balance sheets at fair value when the agreement was signed. Subsequent changes in the fair value of the put option were recognized quarterly in other income /(expense) in the Sohu Group’s consolidated statements of comprehensive income. In the first quarter of 2014, while the put option remained outstanding, the changes in the fair value of the put option of $2.3 million were recognized in other income in the Sohu Group’s consolidated statements of comprehensive income. After Sogou’s repurchase of the Series A Preferred Shares from China Web, the other short-term liabilities recognized with respect to China Web were reversed to zero. | |||||||||||||||||
Management determined the fair values of the repurchase options with Photon and China Web when the agreements were signed, and of the put option with China Web before Sogou exercised the repurchase option, using the binominal model, with a discount for lack of marketability, given that the repurchase options and the put option were not publicly traded at the time of grant. Management made the determination with the assistance of a qualified professional appraiser using management’s estimates and assumptions. The Sohu Group classifies the valuation techniques that use these inputs as Level 3 of fair value measurements. | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
The following are other financial instruments not measured at fair value in the consolidated balance sheets, but for which the fair value was estimated for disclosure purposes. | |||||||||||||||||
Short-term Receivables and Payables | |||||||||||||||||
Accounts receivable and prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Short-term accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short term nature. | |||||||||||||||||
For short-term bank loans, the rates of interest under the agreements with the lending banks were determined based on the prevailing interest rates in the market. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. For other short-term receivables and payables, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Group classifies the valuation technique as Level 3 of fair value measurements. | |||||||||||||||||
Prepaid Non-current Assets and Long-term Payables | |||||||||||||||||
Prepaid non-current assets are financial assets with carrying values that approximate fair value because the impact of applying a discount rate to the carrying values would be immaterial. Long-term accounts payable are financial liabilities with carrying values that approximate fair value due to any changes in fair value, after considering the discount rate, being immaterial. For prepaid non-current assets and long-term accounts payable, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Sohu Group classifies the valuation technique as Level 3 of fair value measurements. |
Goodwill
Goodwill | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Goodwill [Abstract] | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
6. Goodwill | |||||||||||||||||
The changes in the carrying value of goodwill by segment are as follows (in thousands): | |||||||||||||||||
Brand Advertising | Sogou | Changyou | Total | ||||||||||||||
and others | |||||||||||||||||
Balance as of December 31, 2013 | |||||||||||||||||
Goodwill | $ | 58,042 | $ | 6,290 | $ | 185,452 | $ | 249,784 | |||||||||
Accumulated impairment losses | (35,788 | ) | 0 | (5,201 | ) | (40,989 | ) | ||||||||||
$ | 22,254 | $ | 6,290 | $ | 180,251 | $ | 208,795 | ||||||||||
Transactions in 2014 | |||||||||||||||||
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 0 | 42 | 0 | 42 | |||||||||||||
Foreign currency translation adjustment | (1 | ) | (58 | ) | (1,237 | ) | (1,296 | ) | |||||||||
Balance as of June 30, 2014 | $ | 22,253 | $ | 6,274 | $ | 179,014 | $ | 207,541 | |||||||||
Balance as of June 30, 2014 | |||||||||||||||||
Goodwill | $ | 58,041 | $ | 6,274 | $ | 184,215 | $ | 248,530 | |||||||||
Accumulated impairment losses | (35,788 | ) | 0 | (5,201 | ) | (40,989 | ) | ||||||||||
$ | 22,253 | $ | 6,274 | $ | 179,014 | $ | 207,541 |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2014 | |
Taxation [Abstract] | ' |
Taxation | ' |
7. Taxation | |
Sohu.com Inc. is subject to United States (“U.S.”) income tax, and Changyou’s income that is from a U.S. source is generally subject to U.S. income tax. The majority of the subsidiaries and VIEs of the Sohu Group are based in mainland China and are subject to income taxes in the PRC. These China-based subsidiaries and VIEs conduct substantially all of the Sohu Group’s operations, and generate most of the Sohu Group’s income or losses. | |
The Group did not have any penalties or significant interest associated with tax positions for the three and six months ended June 30, 2014, nor did the Group have any significant unrecognized uncertain tax positions for the three and six months ended June 30, 2014. | |
PRC Corporate Income Tax | |
The PRC Corporate Income Tax Law (the “CIT Law”) applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs can enjoy an income tax rate of 15% for three years, but need to re-apply after the end of the three-year period. In addition, the CIT Law and its implementing regulations provide that a “Software Enterprise” can enjoy an income tax exemption for two years beginning with its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. An entity that qualifies as a “Key National Software Enterprise” can enjoy a further reduced preferential income tax rate of 10% for two years, but needs to re-apply after the end of the two-year period. | |
Entities Qualified as HNTEs | |
As of June 30, 2014, the following entities were qualified as HNTEs: Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”), Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”), Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”), Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”), Sogou Information, Changyou’s China-based subsidiary Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”), Changyou’s China-based VIE Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”), and Shenzhen 7Road Technology Co., Ltd. (“Shenzhen 7Road”). | |
Entities Qualified as Software Enterprises | |
As of June 30, 2014, the following entities were qualified as Software Enterprises: Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”), AmazGame, Shenzhen 7Road, Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”), ICE Information Technology (Shanghai) Co., Ltd. (“ICE Information”), Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) and Shenzhen 7Road Network Technologies Co., Ltd. (“7Road Technology”). AmazGame also qualified as a “Key National Software Enterprise.” | |
Applicable Income Tax Rate | |
As of June 30, 2014, Sohu Era, Sohu Media, Sohu Internet, Sogou Technology, Sogou Information, Gamease and Shenzhen7Road were entitled to an income tax rate of 15% as HNTEs; Gamespace and Shanghai ICE were entitled to an income tax rate of 12.5% as Software Enterprises; and Sohu New Momentum was in its first income tax exemption year as a Software Enterprise. 7Road Technology was in its second income tax exemption year as a Software Enterprise. AmazGame was entitled to an income tax rate of 10% as a Key National Software Enterprise. ICE Information was not subject to income tax as it has been incurring losses. | |
Sohu Era, Sohu Media, Sogou Technology, AmazGame, Gamease and Shenzhen 7Road will need to re-apply for HNTE status prior to September 2014. Pending approval of their re-applications, each of these companies will be entitled to continue to enjoy their beneficial tax rates as if they had already qualified as HNTEs for 2014. Sohu Internet and Sogou Information will need to re-apply for HNTE status in 2015, and AmazGame will need to re-apply for Key National Software Enterprise status in 2015. | |
PRC Withholding Tax on Dividends | |
The CIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside mainland China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under the Arrangement Between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital (the “China-HK Tax Arrangement”) if such holding company is considered a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign invested enterprise distributing the dividends, subject to approval of the PRC local tax authority. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to a withholding tax rate of 10%. | |
In order to fund the distribution of a dividend to shareholders of Sohu’s majority-owned subsidiary Changyou, Changyou’s board of directors determined to cause one of its PRC subsidiaries to declare and distribute a cash dividend of all of its 2012 stand alone earnings and half of its 2013 and 2014 stand alone earnings to its direct overseas parent company, Changyou HK. With the exception of that dividend, the Sohu Group does not intend to have any of its PRC subsidiaries distribute any undistributed profits of such subsidiaries to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries for their PRC operations. | |
As of June 30, 2014, Changyou had accrued deferred tax liabilities in the amount of $20.6 million for PRC withholding tax. | |
PRC Value-Added Tax and Business Tax | |
Effective September 1, 2012, a pilot program (the “Pilot Program”) for transition from the imposition of PRC business tax (“Business Tax”) to the imposition of value-added tax (“VAT”) for revenues from certain industries was expanded from Shanghai to eight other cities and provinces in China, including Beijing and Tianjin. Commencing August 1, 2013 the Pilot Program was expanded to all regions in the PRC. All the Sohu Group’s brand advertising and search revenues as well as certain online game revenues were subject to the Pilot Program. | |
VAT payable on advertising and search revenues as well as online game revenues from Changyou’s Web game operations that were not developed in house is the difference between the output VAT (at a rate of 6%) and available input VAT amount (at the rate applicable to the supplier). Other online game revenues were not affected by the Pilot Program. Before and after the Pilot Program, revenues from MMOG operations are subject to a 5% Business Tax, and revenues of 7Road that deemed to be derived from the sale of software are subject to VAT. VAT payable by 7Road is at a rate of 17%, with a 14% immediate tax refund irrespective of the availability of any input VAT, resulting in a net rate of 3%. | |
The Group adopted the net presentation method for its brand advertising and search businesses both before and after the implementation of the Pilot Program. The Group adopted the gross presentation method for revenues of 7Road deemed to be derived from the sale of software both before and after the implementation of the Pilot Program. | |
U.S. Corporate Income Tax | |
Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of 34% or 35%. To the extent that it has U.S. taxable income, the Sohu Group accrues U.S. corporate income tax in its consolidated statements of comprehensive income and makes estimated tax payments as and when required by U.S. law. | |
Uncertain Tax Positions | |
In order to assess uncertain tax positions, we apply a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Unconditional Obligations | |
As of June 30, 2014, the Sohu Group had commitments for bandwidth purchases in the amount of $76.3 million, commitments for video content purchases in the amount of $52.2 million, commitments for operating leases in the amount of $45.4 million, commitments for purchases of games developed by third-parties in the amount of $44.8 million, commitments for purchases of cinema advertisement slot rights in the amount of $30.2 million and commitments for other content and service purchases in the amount of $28.0 million. | |
Litigation | |
The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. Management does not expect the results of any of these actions to have a material adverse effect on the Group’s business, results of operations, financial condition and cash flows. | |
PRC Law and Regulations | |
The Chinese market in which the Sohu Group operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability to operate an Internet business and to conduct brand advertising, search and others, online game, and others services in the PRC. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign-owned entities, like the Sohu Group, may operate. The Chinese government may issue from time to time new laws or new interpretations of existing laws to regulate areas such as telecommunication, information and media. Certain risks related to PRC law that could affect the Sohu Group’s VIE structure are discussed in Note 10—VIE. | |
Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu Group’s legal structure and scope of operations in China could be subject to restrictions, which could result in limits on its ability to conduct business in the PRC. | |
The Sohu Group’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of its assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB by its subsidiaries in China may require certain supporting documentation in order to effect the remittance. |
Contingent_Consideration
Contingent Consideration | 6 Months Ended |
Jun. 30, 2014 | |
Contingent Consideration [Abstract] | ' |
Contingent Consideration | ' |
9. Contingent Consideration | |
The agreement for Changyou’s acquisition of Beijing Doyo Internet Technology Co., Ltd. (“Doyo”) includes a contingent consideration arrangement that requires additional consideration to be paid by Changyou based on the achievement of specified performance milestones by Doyo for the fiscal years 2013 through 2015. The range of the undiscounted amounts Changyou could pay under the contingent consideration agreement is between nil and $7.3 million. The fair value of the contingent consideration, in the amount of $4.8 million, was recognized on the acquisition date using the income approach /discounted cash flow method with a scenario analysis applied. There were no indemnification assets involved. | |
The agreement for Changyou’s acquisition of the RaidCall business includes a contingent consideration arrangement that gives Changyou the right to acquire additional shares of TalkTalk Limited (“TalkTalk”) at no cost if specified conditions occur through the 2014 fiscal year. The range of the additional shares of TalkTalk that Changyou could acquire under the contingent consideration arrangement is between nil and 7.5% of the outstanding shares of TalkTalk on a post-issuance fully-diluted basis. The fair value of the contingent consideration recognized on the acquisition date was nil, as management determined that it is unlikely that the specified conditions will occur and that as a result the fair value and the financial impact on recognition of the noncontrolling interest was zero. | |
For the three and six months ended June 30, 2014, based on management’s assessment, there were no changes in the estimated fair values of these contingent consideration arrangements. |
VIEs
VIEs | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
VIE [Abstract] | ' | ||||||||||||||||
VIEs | ' | ||||||||||||||||
10. VIE | |||||||||||||||||
Background | |||||||||||||||||
PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Sohu Group is engaged or could be deemed to be engaged. Consequently, the Sohu Group conducts certain of its operations and businesses in the PRC through its VIEs. | |||||||||||||||||
The Sohu Group consolidates in its consolidated financial statements all of the VIEs of which the Group is the primary beneficiary. The Sohu Group has two VIEs that are not consolidated in the Group’s consolidated financial statements because the Group is not the primary beneficiary. | |||||||||||||||||
VIEs Consolidated within the Sohu Group | |||||||||||||||||
The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. Management made evaluations of the relationships between the Sohu Group and its VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of contractual arrangements with its consolidated VIEs, the Sohu Group controls the shareholders’ voting interests in those VIEs. As a result of such evaluation, the management concluded that the Sohu Group is the primary beneficiary of the VIEs which the Group consolidates. | |||||||||||||||||
All of the consolidated VIEs are incorporated and operated in the PRC, and are directly or indirectly owned by Dr. Charles Zhang, Sohu’s Chairman and Chief Executive Officer, or other executive officers and employees of the Sohu Group identified below. Capital for the consolidated VIEs was funded by the Sohu Group through loans provided to Dr. Charles Zhang and those other executive officers and employees, and was initially recorded as loans to related parties. These loans are eliminated for accounting purposes against the capital of the VIEs upon consolidation. | |||||||||||||||||
Under contractual agreements with the Sohu Group, Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs are required to transfer their ownership in these entities to the Group, if permitted by PRC laws and regulations, or, if not so permitted, to designees of the Group at any time as requested by the Group to repay the loans outstanding. All voting rights of the consolidated VIEs are assigned to the Sohu Group, and the Group has the right to designate all directors and senior management personnel of the consolidated VIEs, and also has the obligation to absorb losses of the consolidated VIEs. Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs have pledged their shares in the consolidated VIEs as collateral for the loans. As of June 30, 2014, the aggregate amount of these loans was $14.9 million. | |||||||||||||||||
Under its contractual arrangements with the consolidated VIEs, the Sohu Group has the power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without any restrictions. Therefore, the Group considers that there is no asset of a consolidated VIE that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs. As of June 30, 2014, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $56.4 million. As all of the consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the consolidated VIEs do not have recourse to the general credit of the Sohu Group for any of the liabilities of the consolidated VIEs. Currently there is no contractual arrangement that could require the Sohu Group to provide additional financial support to the consolidated VIEs. As the Sohu Group is conducting certain business in the PRC mainly through the consolidated VIEs, the Group may provide such support on a discretionary basis in the future, which could expose the Group to a loss. | |||||||||||||||||
The following is a summary of the consolidated VIEs within the Sohu Group: | |||||||||||||||||
Basic Information | |||||||||||||||||
Corporate | |||||||||||||||||
High Century | |||||||||||||||||
Beijing Century High Tech Investment Co., Ltd. (“High Century”) was incorporated in 2001. As of June 30, 2014, the registered capital of High Century was $4.6 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. | |||||||||||||||||
Heng Da Yi Tong | |||||||||||||||||
Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong “), formally known as “Beijing Sohu Entertainment Culture Media Co., Ltd.” (“Sohu Entertainment”), was incorporated in 2002. As of June 30, 2014, the registered capital of Heng Da Yi Tong was $1.2 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. | |||||||||||||||||
Sohu Internet | |||||||||||||||||
Sohu Internet was incorporated in 2003. As of June 30, 2014, the registered capital of Sohu Internet was $1.6 million and High Century and Heng Da Yi Tong held 75% and 25% interests, respectively, in this entity. | |||||||||||||||||
SohuPay | |||||||||||||||||
SohuPay Science and Technology Co., Ltd. (“SohuPay”) was incorporated in January 2014. As of June 30, 2014, the registered capital of SohuPay was $16.4 million and Sohu Internet held 100% of the equity interests in this entity. | |||||||||||||||||
For the Online Advertising Business | |||||||||||||||||
Brand Advertising Business | |||||||||||||||||
Donglin | |||||||||||||||||
Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) was incorporated in 2010. As of June 30, 2014, the registered capital of Donglin was $1.5 million and High Century and Sohu Internet each held a 50% interest in this entity. | |||||||||||||||||
Pilot New Era | |||||||||||||||||
Beijing Pilot New Era Advertising Co., Ltd. (“Pilot New Era”) was incorporated in 2010. As of June 30, 2014, the registered capital of Pilot New Era was $0.7 million and High Century and Sohu Internet each held a 50% interest in this entity. | |||||||||||||||||
Focus Yiju | |||||||||||||||||
Beijing Focus Yiju Network Information Technology Co., Ltd. (“Focus Yiju”) was acquired in 2011. As of June 30, 2014, the registered capital of Focus Yiju was $1.6 million and High Century held 100% of the equity interests in this entity. | |||||||||||||||||
Tianjin Jinhu | |||||||||||||||||
Tianjin Jinhu Culture Development Co., Ltd. (“Tianjin Jinhu”) was incorporated in 2011. As of June 30, 2014, the registered capital of Tianjin Jinhu was $0.5 million and Ye Deng and Xuemei Zhang each held a 50% interest in this entity. | |||||||||||||||||
Search and Others Business | |||||||||||||||||
Sogou Information | |||||||||||||||||
Sogou Information was incorporated in 2005. As of June 30, 2014, the registered capital of Sogou Information was $2.5 million and Xiaochuan Wang, Sogou’s Chief Executive Officer, High Century and Tencent held 10%, 45% and 45% interests, respectively, in this entity. | |||||||||||||||||
Shi Ji Guang Su | |||||||||||||||||
Shenzhen Shi Ji Guang Su Information Technology Co., Ltd. (“Shi Ji Guang Su”) was acquired in September 2013. As of June 30, 2014, the registered capital of Shi Ji Guang Su was $3.2 million and Sogou Information held 100% of the equity interests in this entity. | |||||||||||||||||
For the Online Game Business | |||||||||||||||||
Gamease | |||||||||||||||||
Gamease was incorporated in 2007. As of June 30, 2014, the registered capital of Gamease was $1.3 million and Tao Wang, Chief Executive Officer of Changyou, and Dewen Chen, President of Changyou, held 60% and 40% interests, respectively, in this entity. | |||||||||||||||||
Shanghai ICE | |||||||||||||||||
Shanghai ICE was acquired by Changyou in 2010. As of June 30, 2014, the registered capital of Shanghai ICE was $1.2 million and Runa Pi and Rong Qi each held a 50% interest in this entity. | |||||||||||||||||
Guanyou Gamespace | |||||||||||||||||
Guanyou Gamespace was incorporated in 2010. As of June 30, 2014, the registered capital of Guanyou Gamespace was $1.5 million and Tao Wang and Dewen Chen held 60% and 40% interests, respectively, in this entity. | |||||||||||||||||
Zhi Hui You | |||||||||||||||||
Beijing Zhi Hui You Information Technology Co., Ltd. (“Zhi Hui You”) was incorporated in 2011. Initially Jing Zhou, who is a Sohu employee, and a third party entity each held 50% of the equity interests in this entity. In the first quarter of 2014, Jing Zhou and the third party entity transferred all of their equity interests in Zhi Hui You to Changyou’s VIE Guanyou Gamespace. As of June 30, 2014, the registered capital of Zhi Hui You was $1.6 million and Guanyou Gamespace held 100% of the equity interests in this entity. | |||||||||||||||||
Shenzhen 7Road | |||||||||||||||||
68.258% of the equity interests of Shenzhen 7Road were acquired by Gamease in 2011. The remaining 31.742% of the equity interests of Shenzhen 7Road were acquired by Gamease on May 1, 2013. As of June 30, 2014, the registered capital of Shenzhen 7Road was $1.5 million and Gamease held 100% of the equity interests in this entity. | |||||||||||||||||
Doyo | |||||||||||||||||
Doyo was acquired by Guanyou Gamespace in November 2013. As of June 30, 2014, the registered capital of Doyo was $1.6 million and Guanyou Gamespace held 100% of the equity interests in this entity. | |||||||||||||||||
Changyou e-pay | |||||||||||||||||
Beijing Changyou e-pay Co. Ltd. (“Changyou e-pay”) was incorporated in 2013. As of June 30, 2014, the registered capital of Changyou e-pay was $1.6 million and Gamease held 100% of the equity interests in this entity. | |||||||||||||||||
Aishouxin | |||||||||||||||||
Beijing Changyou Aishouxin ecological technology Co., Ltd. (“Aishouxin”) was incorporated in May 2014. As of June 30, 2014, the registered capital of Aishouxin was $2.4 million and Gamease held 100% of the equity interests in this entity. | |||||||||||||||||
Changyou Thai | |||||||||||||||||
Changyou.com (TH) Limited (“Changyou Thai”) was incorporated in April 2014. As of June 30, 2014, the registered capital of Changyou Thai was $0.3 million and a third-party entity and Changyou.com HK Limited held 51% and 49% interests, respectively, in this entity. | |||||||||||||||||
For the Others Business | |||||||||||||||||
GoodFeel | |||||||||||||||||
Beijing GoodFeel Technology Co., Ltd. (“GoodFeel”) was acquired in 2004. As of June 30, 2014, the registered capital of GoodFeel was $1.2 million and James Deng and Jing Zhou, held 58.1% and 41.9% interests, respectively, in this entity. | |||||||||||||||||
21 East Beijing | |||||||||||||||||
Beijing 21 East Culture Development Co., Ltd. (“21 East Beijing”) was acquired in 2006. As of June 30, 2014, the registered capital of 21 East Beijing was $1.6 million and High Century held 100% of the equity interests in this entity. | |||||||||||||||||
Yi He Jia Xun | |||||||||||||||||
Beijing Yi He Jia Xun Information Technology Co., Ltd. (“Yi He Jia Xun”) was acquired in September 2011. As of June 30, 2014, the registered capital of Yi He Jia Xun was $2.1 million and Gang Fang and Yanfeng Lv each held a 50% interest in this entity. | |||||||||||||||||
Financial Information | |||||||||||||||||
The following financial information of the Sohu Group’s consolidated VIEs is included in the accompanying consolidated financial statements (in thousands): | |||||||||||||||||
As of | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
ASSETS: | |||||||||||||||||
Cash and cash equivalents | $ | 64,918 | $ | 112,316 | |||||||||||||
Short-term investments | 0 | 2,460 | |||||||||||||||
Accounts receivable, net | 91,350 | 95,595 | |||||||||||||||
Prepaid and other current assets | 36,884 | 41,838 | |||||||||||||||
Intercompany receivables due from the Company’s subsidiaries | 116,960 | 223,877 | |||||||||||||||
Total current assets | 310,112 | 476,086 | |||||||||||||||
Fixed assets, net | 10,351 | 8,190 | |||||||||||||||
Goodwill | 138,243 | 139,478 | |||||||||||||||
Intangible assets, net | 37,203 | 35,135 | |||||||||||||||
Other non-current assets | 68,719 | 61,550 | |||||||||||||||
Total assets | $ | 564,628 | $ | 720,439 | |||||||||||||
LIABILITIES: | |||||||||||||||||
Accounts payable | $ | 4,762 | $ | 16,167 | |||||||||||||
Accrued and other short-term liabilities | 107,071 | 343,834 | |||||||||||||||
Receipts in advance and deferred revenue | 43,050 | 60,140 | |||||||||||||||
Intercompany payables due to the Company’s subsidiaries | 217,889 | 12,059 | |||||||||||||||
Total current liabilities | 372,772 | 432,200 | |||||||||||||||
Other long-term liabilities | 6,158 | 9,560 | |||||||||||||||
Total liabilities | $ | 378,930 | $ | 441,760 | |||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net revenue | $ | 254,129 | $ | 254,165 | $ | 505,249 | $ | 500,586 | |||||||||
Net income /(loss) | $ | (43,785 | ) | $ | 9,090 | $ | (88,459 | ) | $ | 19,872 | |||||||
For the table below, consolidated VIEs under the Brand advertising, Sogou and Others segments are classified as Sohu’s VIEs, and consolidated VIEs under the Changyou segment are classified as Changyou’s VIEs. | |||||||||||||||||
Cash flows of Sohu’s VIEs | |||||||||||||||||
Six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net cash provided by operating activities | $ | 15,935 | $ | 2,795 | |||||||||||||
Net cash used in investing activities | (979 | ) | (991 | ) | |||||||||||||
Net cash provided by financing activities | $ | 0 | $ | 0 | |||||||||||||
Cash flows of Changyou’s VIEs | |||||||||||||||||
Six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net cash provided by operating activities | $ | 23,802 | $ | 28,842 | |||||||||||||
Net cash used in investing activities | (84,578 | ) | (55,869 | ) | |||||||||||||
Net cash used in financing activities | $ | (793 | ) | $ | 0 | ||||||||||||
Summary of Significant Agreements Currently in Effect | |||||||||||||||||
Agreements between Consolidated VIEs and Nominee Shareholders | |||||||||||||||||
Loan and share pledge agreements between Sohu Era and the shareholders of High Century and Heng Da Yi Tong: These loan agreements provide for loans to the shareholders of High Century and Heng Da Yi Tong for them to make contributions to the registered capital of High Century and Heng Da Yi Tong in exchange for the equity interests in High Century and Heng Da Yi Tong, and under these pledge agreements the shareholders pledge those equity interests to Sohu Era as security for the loans. The loan agreements include powers of attorney that give Sohu Era the power to appoint nominees to act on behalf of the shareholders of High Century and Heng Da Yi Tong in connection with all actions to be taken by High Century and Heng Da Yi Tong. Pursuant to the loan agreements, the shareholders executed in blank transfers of their equity interests in High Century and Heng Da Yi Tong, which transfers are held by the Sohu Group’s legal department and may be completed and effected at Sohu Era’s election. | |||||||||||||||||
Loan and share pledge agreements between Sogou Technology and the shareholders of Sogou Information. The loan agreement provides for a loan to Xiaochuan Wang, the individual shareholder of Sogou Information, to be used by him to make contributions to the registered capital of Sogou Information in exchange for his equity interest in Sogou Information. The loan is interest free-and is repayable on demand, but the shareholder may repay the loan only by transferring to Sogou Technology his equity interest in Sogou Information. Under the pledge agreement, all of the shareholders of Sogou Information pledge their equity interests to Sogou Technology to secure the performance of their obligations under the various VIE-related agreements. If any shareholder of Sogou Information breaches any of his or its obligations under any VIE-related agreements, Sogou Technology is entitled to exercise its right as the beneficiary under the share pledge agreement. The share pledge agreement terminates only after all of the obligations of the shareholders under the various VIE-related agreements are no longer in effect. | |||||||||||||||||
Exclusive equity interest purchase right agreements between Sogou Technology, Sogou Information and the shareholders of Sogou Information. Pursuant to these agreements, Sogou Technology and any third party designated by it have the right, exercisable at any time when it becomes legal to do so under PRC law, to purchase from the shareholders of Sogou Information all or any part of their equity interests at a purchase price equal to the shareholders’ initial contributions to registered capital. | |||||||||||||||||
Business operation agreement among Sogou Technology, Sogou Information and the shareholders of Sogou Information. The agreement sets forth the right of Sogou Technology to control the actions of the shareholders of Sogou Information. The agreement has a term of 10 years, renewable at the request of Sogou Technology. | |||||||||||||||||
Powers of Attorney executed by the shareholders of Sogou Information in favor of Sogou Technology with a term of 10 years, extendable at the request of Sogou Technology. These powers of attorney give Sogou Technology the right to appoint nominees to act on behalf of each of the three Sogou Information shareholders in connection with all actions to be taken by Sogou Information. | |||||||||||||||||
Loan and share pledge agreements between Sohu Era and the respective shareholders of GoodFeel: These loan agreements provide for loans to the shareholders of GoodFeel for them to make contributions to the registered capital of GoodFeel in exchange for the equity interests in GoodFeel, and under these pledge agreements the shareholders pledge those equity interests to Sohu Era as security for the loans. The loan agreements include powers of attorney that give Sohu Era the power to appoint nominees to act on behalf of the shareholders of GoodFeel in connection with all actions to be taken by GoodFeel. Pursuant to the loan agreements, the shareholders executed in blank transfers of their equity interests in GoodFeel, which transfers are held by the Sohu Group’s legal department and may be completed and effected at Sohu Era’s election. | |||||||||||||||||
Loan and share pledge agreements between Sohu Era and the shareholders of Yi He Jia Xun. The loan agreement provides for loans to the individual shareholders of Yi He Jia Xun, to be used by them to make contributions to the registered capital of Yi He Jia Xun in exchange for the equity interest in Yi He Jia Xun. The loans are interest free-and are repayable on demand, but the shareholders may repay the loans only by transferring to Sohu Era their equity interest in Yi He Jia Xun. Under the pledge agreements, all of the shareholders of Yi He Jia Xun pledge their equity interests to Sohu Era to secure the performance of their obligations under the various VIE-related agreements. If any shareholder of Yi He Jia Xun breaches any of his or its obligations under any VIE-related agreements, Sohu Era is entitled to exercise its right as the beneficiary under the share pledge agreement. The share pledge agreement terminates only after all of the obligations of the shareholders under the various VIE-related agreements are no longer in effect. | |||||||||||||||||
Exclusive equity interest purchase right agreements between Sohu Era, Yi He Jia Xun and the shareholders of Yi He Jia Xun. Pursuant to these agreements, Sohu Era and any third party designated by it have the right, exercisable at any time when it becomes legal to do so under PRC law, to purchase from the shareholders of Yi He Jia Xun all or any part of their equity interests at a purchase price equal to the shareholders’ initial contributions to registered capital. | |||||||||||||||||
Business operation agreement among Sohu Era, Yi He Jia Xun and the shareholders of Yi He Jia Xun. The agreement sets forth the right of Sohu Era to control the actions of the shareholders of Yi He Jia Xun. The agreement has a term of 10 years, renewable at the request of Sohu Era. | |||||||||||||||||
Powers of Attorney executed by the shareholders of Yi He Jia Xun in favor of Sohu Era with a term of 10 years, extendable at the request of Sohu Era. These powers of attorney give Sohu Era the right to appoint nominees to act on behalf of each of the two Yi He Jia Xun shareholders in connection with all actions to be taken by Yi He Jia Xun. | |||||||||||||||||
Loan agreements and equity pledge agreements between AmazGame and the shareholders of Gamease and between Gamespace and the shareholders of Guanyou Gamespace. The loan agreements provide for loans to the shareholders of Gamease and Guanyou Gamespace, respectively, for them to make contributions to the registered capital of Gamease and Guanyou Gamespace in exchange for the equity interests in Gamease and Guanyou Gamespace, respectively. Under the equity pledge agreements the shareholders of Gamease and Guanyou Gamespace, respectively, pledge to AmazGame and Gamespace, respectively, their equity interests in Gamease and Guanyou Gamespace, respectively, to secure the performance of their obligations under the loan agreements and Gamease’s and Guanyou Gamespace’s obligations to AmazGame and Gamespace under their business agreements. The loans are interest free and are repayable on demand, but the shareholders can only repay the loans by transferring to AmazGame and Gamespace, respectively, their equity interests in Gamease and Guanyou Gamespace. | |||||||||||||||||
Equity interest purchase right agreements between AmazGame and the shareholders of Gamease and between Gamespace and the shareholders of Guanyou Gamespace. Pursuant to these agreements, AmazGame and Gamespace, respectively, have the right, and any third party designated by them has the right, exercisable at any time during the terms of the agreements, if and when it becomes legal to do so under PRC law, to purchase from the shareholders of Gamease and Guanyou Gamespace, respectively, all or any part of their equity interests at a purchase price equal to their initial contributions to the registered capital of Gamease and Guanyou Gamespace or the proportional amount of such initial contribution in the case of a partial purchase of such equity interests. | |||||||||||||||||
Business operation agreements among AmazGame, Gamease and the shareholders of Gamease and among Gamespace, Guanyou Gamespace and the shareholders of Guanyou Gamespace. These agreements set forth the rights of AmazGame and Gamespace, respectively, to control the actions of the shareholders of Gamease and Guanyou Gamespace, respectively. The agreements have a term of 10 years. | |||||||||||||||||
Powers of attorney executed by the shareholders of Gamease in favor of AmazGame and the shareholders of Guanyou Gamespace in favor of Gamespace, with a term of 10 years. These powers of attorney give AmazGame and Gamespace, respectively, the exclusive right to appoint nominees to act on behalf of the shareholders in connection with all actions to be taken by Gamease and Guanyou Gamespace, respectively. | |||||||||||||||||
Call option agreement among ICE Information, Shanghai ICE and Shanghai ICE shareholders. This agreement provides to ICE Information and any third party designated by ICE Information the right, exercisable at any time during the terms of the agreements, if and when it becomes legal to do so under PRC law, to purchase from the shareholders all or any part of their shares in Shanghai ICE or purchase from Shanghai ICE all or part of its assets or business at the lowest purchase price permissible under PRC law. The agreement is terminable only if ICE Information is dissolved. | |||||||||||||||||
Share pledge agreement among ICE Information, Shanghai ICE and the shareholders of Shanghai ICE. Under this agreement the shareholders pledge to ICE Information their equity interests in Shanghai ICE to secure the performance of their obligations under the call option agreement described above and Shanghai ICE’s obligations to ICE Information under their business agreements described below. | |||||||||||||||||
Business operation agreement among ICE Information, Shanghai ICE and the shareholders of Shanghai ICE. This agreement sets forth the right of ICE Information to control the actions of the shareholders of Shanghai ICE. The agreement is terminable only if ICE Information is dissolved. | |||||||||||||||||
Amended and restated equity interest purchase right agreement among 7Road Technology, Shenzhen 7Road and Gamease, which is Shenzhen 7Road’s sole shareholder. Under this agreement, 7Road Technology and any third-party designated by 7Road Technology have the right, exercisable at any time during the term of the agreement, if and when it is legal to do so under PRC law, to purchase from Gamease all or any part of its shares in Shenzhen 7Road at a nominal purchase price. This agreement has a term of 10 years, is renewable by 7Road Technology for such term as it may determine and is terminable by 7Road Technology by notice to the other parties at any time when, under PRC law as then in effect, 7Road Technology cannot exercise its purchase right, and is also terminable if Shenzhen 7Road’s or 7Road Technology’s existence is terminated, by mutual agreement of the parties or upon the written request of 7Road Technology. Neither Gamease nor Shenzhen 7Road has any power to terminate the agreement. | |||||||||||||||||
Equity interest pledge agreement among 7Road Technology, Shenzhen 7Road and Gamease. Under this agreement, Gamease agreed to pledge to 7Road Technology its equity interests in Shenzhen 7Road to secure the performance of its obligations and Shenzhen 7Road’s obligations under the various VIE-related agreements. If Gamease or Shenzhen 7Road breaches its obligations under any VIE-related agreements, 7Road Technology is entitled to exercise its rights as the beneficiary under the Equity Interest Pledge Agreement. This agreement terminates only after all of the obligations of Gamease and of Shenzhen 7Road under the various VIE-related agreements are no longer in effect. | |||||||||||||||||
Business operation agreement among 7Road Technology, Shenzhen 7Road and Gamease. This agreement grants to 7Road Technology the right to control the actions of Shenzhen 7Road and the actions of Gamease in its capacity as the shareholder of Shenzhen 7Road. This agreement has a term of 10 years, is renewable by 7Road Technology for such term as it may determine and is terminable early if the existence of Shenzhen 7Road or 7Road Technology is terminated, by mutual agreement of the parties or upon the written request of 7Road Technology. | |||||||||||||||||
Power of attorney executed by Gamease in favor of 7Road Technology. This power of attorney gives 7Road Technology the exclusive right to appoint designees to act on behalf of Gamease in connection with all actions to be taken by Shenzhen 7Road requiring shareholder approval. | |||||||||||||||||
Business Arrangements between Subsidiaries and Consolidated VIEs | |||||||||||||||||
Exclusive technology consulting and service agreement between Sohu Era and Sohu Internet. Pursuant to this agreement Sohu Era has the exclusive right to provide technical consultation and other related services to Sohu Internet, in exchange for a percentage of the gross income of Sohu Internet. The agreement has an initial term of two years, and is renewable at the request of Sohu Era. | |||||||||||||||||
Exclusive technology consulting and service agreement between GoodFeel and Sohu Era. Pursuant to this agreement Sohu Era has the exclusive right to provide technical consultation and other related services to GoodFeel in exchange for a fee. The agreement has a term of two years, and is renewable at the request of Sohu Era. | |||||||||||||||||
Exclusive technology consulting and service agreement between Yi He Jia Xun and Sohu Era. Pursuant to this agreement Sohu Era has the exclusive right to provide technical consultation and other related services to Yi He Jia Xun in exchange for a fee. The agreement has a term of ten years, and is renewable at the request of Sohu Era. | |||||||||||||||||
Business cooperation agreement between Sogou Technology and Sogou Information. Pursuant to this agreement, Sogou Information provides Internet information services to Sogou Technology’s customers in exchange for a fee payable to Sogou Information. The agreement has a term of 10 years, and is renewable at the request of Sogou Technology. | |||||||||||||||||
Exclusive technology consulting and service agreement between Sogou Technology and Sogou Information. Pursuant to this agreement Sogou Technology has the exclusive right to provide technical consultation and other related services to Sogou Information in exchange for a fee. The agreement has a term of 10 years and is renewable at the request of Sogou Technology. | |||||||||||||||||
Technology support and utilization agreements between AmazGame and Gamease and between Gamespace and Guanyou Gamespace. Pursuant to these agreements, AmazGame and Gamespace, respectively, have the exclusive right to provide certain product development and application services and technology support to Gamease and Guanyou Gamespace, respectively, for a fee equal to a predetermined percentage, subject to adjustment by AmazGame or Gamespace at any time, of Gamease’s and Guanyou Gamespace’s respective revenues. These agreements will be terminated only when AmazGame and Gamespace are dissolved. | |||||||||||||||||
Services and maintenance agreements between AmazGame and Gamease between Gamespace and Guanyou Gamespace. Pursuant to these agreements, AmazGame and Gamespace, respectively, provide marketing, staffing, business operation and maintenance services to Gamease and Guanyou Gamespace, respectively, in exchange for a fee equal to the cost of providing such services plus a predetermined margin. These agreements will be terminated only when AmazGame and Gamespace are dissolved. | |||||||||||||||||
Exclusive business cooperation agreement between ICE Information and Shanghai ICE. This agreement sets forth the exclusive right of ICE Information to provide business support and technical services to Shanghai ICE. The agreement will be terminated only when ICE Information is dissolved. | |||||||||||||||||
Exclusive technology consulting and services agreement between ICE Information and Shanghai ICE. This agreement provides to ICE Information the exclusive right to provide technical consultation and other related services to Shanghai ICE in exchange for a fee equal to the balance of Shanghai ICE’s gross income after deduction of related costs and expenses. The agreement will be terminated only when ICE Information is dissolved. | |||||||||||||||||
Technology development and utilization agreement between 7Road Technology and Shenzhen 7Road. Under this agreement, 7Road Technology has the exclusive right to provide product development and application services and technology support to Shenzhen 7Road for a fee based on Shenzhen 7Road’s revenues, which fee can be adjusted by 7Road Technology at any time in its sole discretion. The fee is eliminated upon consolidation. This agreement will terminate if the existence of 7Road Technology or Shenzhen 7Road is terminated, by mutual agreement of the parties or upon failure to perform due to a force majeure event. | |||||||||||||||||
Services and maintenance agreement between 7Road Technology and Shenzhen 7Road. Pursuant to this agreement, 7Road Technology provides marketing and maintenance services to Shenzhen 7Road in exchange for a fee equal to the cost of providing such services plus a predetermined margin. This agreement will terminate if the existence of 7Road Technology or Shenzhen 7Road is terminated, by mutual agreement of the parties or upon failure to perform due to a force majeure event. | |||||||||||||||||
Certain of the contractual arrangements described above between the VIEs and the related wholly-owned subsidiaries of the Sohu Group are silent regarding renewals. However, because the VIEs are controlled by the Sohu Group through powers of attorney granted to the Sohu Group by the shareholders of the VIEs, the contractual arrangements can be, and are expected to be, renewed at the subsidiaries’ election. | |||||||||||||||||
VIE-Related Risks | |||||||||||||||||
It is possible that the Sohu Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC laws and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If such a finding were made, regulatory authorities with jurisdiction over the licensing and operation of such operations businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a materially adverse impact on the Group’s cash flows, financial position and operating performance. The Group’s management considers the possibility of such a finding by PRC regulatory authorities to be remote. | |||||||||||||||||
In addition, it is possible that the contracts with the Sohu Group, the Sohu Group’s VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Group would not be able to exert effective control over the affected VIEs. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Sohu Group’s consolidated financial statements. If such were the case, the Group’s cash flows, financial position and operating performance would be materially adversely affected. The Sohu Group’s contractual arrangements with respect to its consolidated VIEs are approved and in place. The management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sohu Group’s operations and contractual relationships would find the contracts to be unenforceable. | |||||||||||||||||
The Sohu Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include goodwill and intangible assets acquired through business acquisitions. Goodwill primarily represents the expected synergies from combining an acquired business with the Group. Intangible assets acquired through business acquisitions mainly consist of customer relationships, non-compete agreements, user bases, copyrights, trademarks and developed technologies. Unrecognized revenue-producing assets mainly consist of licenses and intellectual property. Licenses include operations licenses, such as internet information service licenses and licenses for providing content. Intellectual property developed by Sohu mainly consists of patents, copyrights, trademarks, and domain names. The Group’s operations and businesses may be adversely impacted if the Group loses the ability to use and enjoy assets held by these VIEs. | |||||||||||||||||
VIEs Not Consolidated within the Sohu Group | |||||||||||||||||
As of June 30, 2014, Sohu acquired a 25% equity interest and a 15% equity interest, respectively, in two VIEs to support Sohu’s brand advertising business, for a total price of approximately $1.6 million. Since the Sohu Group neither has the power to direct these VIEs’ activities that will significantly impact their economic performance nor has the obligation to absorb losses of, or the right to receive benefits from, these VIEs that could potentially be significant to these VIEs, the Group is not the primary beneficiary and, accordingly, the Group recognizes the investments under the equity method or the cost method according to the share percentage the Group holds. In assessing the maximum exposure to a loss on the investments compared to the cost of its investment, the Sohu Group determined that it did not have further obligations exceeding the cost of the investments and that there were no terms of the investment arrangements that could require the Sohu Group to provide further financial support to the VIEs. |
Sohucom_Inc_Shareholders_Equit
Sohu.com Inc. Shareholders' Equity | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Sohu.com Inc. Shareholders' Equity [Abstract] | ' | ||||||||||||||||
Sohu.com Inc. Shareholders' Equity | ' | ||||||||||||||||
11. Sohu.com Inc. Shareholders’ Equity | |||||||||||||||||
Takeover Defense | |||||||||||||||||
Sohu intends to adopt appropriate defensive measures in the future on a case by case basis as and to the extent that Sohu’s Board of Directors determines that such measures are necessary or advisable to protect Sohu stockholder value in the face of any coercive takeover threats or to prevent an acquirer from gaining control of Sohu without offering fair and adequate price and terms. | |||||||||||||||||
Treasury Stock | |||||||||||||||||
Treasury stock consists of shares repurchased by Sohu that are no longer outstanding and are held by Sohu. Treasury stock is accounted for under the cost method. | |||||||||||||||||
For the three and six months ended June 30, 2014 and 2013, the Company did not repurchase any shares of its common stock. | |||||||||||||||||
Stock Incentive Plan | |||||||||||||||||
Sohu, Changyou, Sogou, and Sohu Video have incentive plans, and prior to June 28, 2013 7Road had an incentive plan, for the granting of share-based awards, including common stock or ordinary shares, share options, restricted shares and restricted share units, to their directors, executive officers, and employees. | |||||||||||||||||
1) Sohu.com Inc. Share-based Awards | |||||||||||||||||
Sohu’s 2000 Stock Incentive Plan | |||||||||||||||||
Sohu’s 2000 Stock Incentive Plan (the “Sohu 2000 Stock Incentive Plan”) provided for the issuance of up to 9,500,000 shares of common stock, including those issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. Most of these awards vest over a period of four years. The maximum term of any issued stock right under the Sohu 2000 Stock Incentive Plan is ten years from the grant date. The Sohu 2000 Stock Incentive Plan expired on January 24, 2010. As of the expiration date, 9,128,724 shares of common stock had been issued or were subject to issuance upon the vesting and exercise of share options or the vesting and settlement of restricted share units granted under the plan. A new plan (the “Sohu 2010 Stock Incentive Plan”) was adopted by Sohu’s shareholders on July 2, 2010. | |||||||||||||||||
For the three and six months ended June 30, 2014, total share-based compensation expense recognized for awards under the Sohu 2000 Stock Incentive Plan was nil and $1.4 million, respectively. For the three and six months ended June 30, 2013, total share-based compensation expense recognized for awards under the Sohu 2000 Stock Incentive Plan was $0.5 million and $1.2 million, respectively. | |||||||||||||||||
i) Summary of share option activity | |||||||||||||||||
A summary of share option activity under the Sohu 2000 Stock Incentive Plan as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||
Options | Number | Weighted | Weighted | Aggregate | |||||||||||||
Of | Average | Average | Intrinsic | ||||||||||||||
Shares | Exercise | Remaining | Value (1) | ||||||||||||||
(in thousands) | Price | Contractual | (in thousands) | ||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding at January 1, 2014 | 147 | $ | 18.87 | 1.39 | $ | 7,958 | |||||||||||
Exercised | (23 | ) | 18.62 | ||||||||||||||
Forfeited or expired | 0 | ||||||||||||||||
Outstanding at June 30, 2014 | 124 | 18.92 | 0.89 | 4,814 | |||||||||||||
Vested at June 30, 2014 | 124 | 18.92 | 0.89 | 4,814 | |||||||||||||
Exercisable at June 30, 2014 | 124 | 18.92 | 0.89 | 4,814 | |||||||||||||
Note (1): | The aggregate intrinsic value in the preceding table represents the difference between Sohu’s closing stock price of $57.69 on June 30, 2014 and the exercise price of share options. The total intrinsic value of share options exercised for the six months ended June 30, 2014 was $1.3 million. | ||||||||||||||||
No options have been granted under Sohu’s 2000 Stock Incentive Plan since 2006. For the three and six months ended June 30, 2014 and 2013, no compensation expense was recognized for share options because the requisite service periods for share options had ended by the end of 2009. | |||||||||||||||||
For the three and six months ended June 30, 2014, total cash received from the exercise of share options amounted to $0.1 million and $0.4 million, respectively. For the three and six months ended June 30, 2013, total cash received from the exercise of share options amounted to $0.3 million and $0.8 million, respectively. | |||||||||||||||||
ii) Summary of restricted share unit activity | |||||||||||||||||
A summary of restricted share unit activity under the Sohu 2000 Stock Incentive Plan as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||
Restricted Share Units | Number of | Weighted-Average | |||||||||||||||
Units | Grant-Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 123 | $ | 61.27 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Vested | (121 | ) | 61.27 | ||||||||||||||
Forfeited | (2 | ) | 61.27 | ||||||||||||||
Unvested at June 30, 2014 | 0 | ||||||||||||||||
Expected to vest thereafter | 0 | ||||||||||||||||
For the three and six months ended June 30, 2014, total share-based compensation expense recognized for restricted share units was nil and $1.4 million, respectively. For the three and six months ended June 30, 2013, total share-based compensation expense recognized for restricted share units was $0.5 million and $1.2 million, respectively. | |||||||||||||||||
There was no unrecognized compensation expense for restricted share units as of June 30, 2014, because all remaining unvested restricted shares units vested in the first quarter of 2014. The total fair value on their respective vesting dates of restricted share units that vested during the three and six months ended June 30, 2014 was nil and $9.3 million, respectively. The total fair value on their respective vesting dates of restricted share units vested during the three and six months ended June 30, 2013 was nil and $6.2 million, respectively. | |||||||||||||||||
Sohu’s 2010 Stock Incentive Plan | |||||||||||||||||
On July 2, 2010, Sohu’s shareholders adopted the Sohu 2010 Stock Incentive Plan, which provides for the issuance of up to 1,500,000 shares of common stock, including shares issued pursuant to the vesting and settlement of restricted share units and pursuant to the exercise of share options. The maximum term of any stock right granted under the Sohu 2010 Stock Incentive Plan is ten years from the grant date. The Sohu 2010 Stock Incentive Plan will expire on July 1, 2020. As of June 30, 2014, 1,298,513 shares were available for grant under the Sohu 2010 Stock Incentive Plan. | |||||||||||||||||
A summary of restricted share unit activity under the Sohu 2010 Stock Incentive Plan as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||
Restricted Share Units | Number of | Weighted-Average | |||||||||||||||
Units | Grant-Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 123 | $ | 84.82 | ||||||||||||||
Granted | 36 | 67.57 | |||||||||||||||
Vested | 0 | ||||||||||||||||
Forfeited | (1 | ) | 70.88 | ||||||||||||||
Unvested at June 30, 2014 | 158 | 80.91 | |||||||||||||||
Expected to vest thereafter | 118 | 54.46 | |||||||||||||||
For the three and six months ended June 30, 2014, total share-based compensation expense recognized for restricted share units was $1.3 million and $2.5 million, respectively. For the three and six months ended June 30, 2013, total share-based compensation expense recognized for restricted share units was $0.2 million and $0.4 million, respectively. | |||||||||||||||||
As of June 30, 2014, there was $6.3 million of unrecognized compensation expense related to unvested restricted share units. The expense is expected to be recognized over a weighted average period of 1.16 years. The total fair value on their respective vesting dates of restricted share units that vested was nil during both the three months and the six months ended June 30, 2014 and 2013. | |||||||||||||||||
2) Changyou.com Limited Share-based Awards | |||||||||||||||||
Changyou’s 2008 Share Incentive Plan | |||||||||||||||||
Changyou’s 2008 Share Incentive Plan (the “Changyou 2008 Share Incentive Plan”) originally provided for the issuance of up to 2,000,000 ordinary shares, including ordinary shares issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. The 2,000,000 reserved shares became 20,000,000 ordinary shares in March 2009 when Changyou effected a ten-for-one share split of its ordinary shares. Most of the awards granted under the Changyou 2008 Share Incentive Plan vest over a period of four years. The maximum term of any share right granted under the Changyou 2008 Share Incentive Plan is ten years from the grant date. The Changyou 2008 Share Incentive Plan will expire in August 2018. | |||||||||||||||||
Through June 30, 2014, Changyou had granted under the Changyou 2008 Share Incentive Plan 15,000,000 ordinary shares to its chief executive officer Tao Wang, through Prominence Investments Ltd., which is an entity that may deemed under applicable rules of the Securities and Exchange Commission to be beneficially owned by Tao Wang. As of June 30, 2014, Changyou had also granted under the Changyou 2008 Share Incentive Plan restricted share units, settleable upon vesting by the issuance of an aggregate of 4,983,552 ordinary shares, to its executive officers other than Tao Wang, and certain other Changyou employees. | |||||||||||||||||
For the three and six months ended June 30, 2014, total share-based compensation expense recognized for awards under the Changyou 2008 Share Incentive Plan was $0.5 million and $0.7 million, respectively. For the three and six months ended June 30, 2013, total share-based compensation expense recognized for awards under the Changyou 2008 Share Incentive Plan was $0.4 million and $0.6 million, respectively. | |||||||||||||||||
Share-based Awards Granted before Changyou’s Initial Public Offering | |||||||||||||||||
All of the restricted ordinary shares and restricted share units granted before Changyou’s IPO became vested in 2012 and 2013, respectively. Hence there has been no share-based compensation expense recognized with respect to such restricted ordinary shares and restricted share units since their respective full vesting dates. | |||||||||||||||||
Share-based Awards Granted after Changyou’s Initial Public Offering | |||||||||||||||||
Through June 30, 2014, in addition to the share-based awards granted before Changyou’s IPO, Changyou had granted restricted share units, settleable upon vesting with the issuance of an aggregate of 1,787,552 ordinary shares, to certain of its executive officers other than Tao Wang and to certain of its other employees. These restricted share units are subject to vesting over a four-year period commencing on their grant dates. Share-based compensation expense for such restricted share units is recognized on an accelerated basis over the requisite service period. The fair value of restricted share units was determined based on the market price of Changyou’s American depositary shares (“ADSs”) on the grant date. | |||||||||||||||||
A summary of activity for these restricted share units as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||
Restricted Share Units | Number of | Weighted-Average | |||||||||||||||
Units | Grant-Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 218 | $ | 14.46 | ||||||||||||||
Granted | 160 | 13.8 | |||||||||||||||
Vested | (29 | ) | 16.32 | ||||||||||||||
Forfeited | (5 | ) | 17.19 | ||||||||||||||
Unvested at June 30, 2014 | 344 | 13.96 | |||||||||||||||
Expected to vest after June 30, 2014 | 331 | 13.97 | |||||||||||||||
For the three and six months ended June 30, 2014, total share-based compensation expense recognized for the above restricted share units was $0.5 million and $0.7 million, respectively. For the three and six months ended June 30, 2013, total share-based compensation expense recognized for the above restricted share units was $0.4 million and $0.9 million, respectively. | |||||||||||||||||
As of June 30, 2014, there was $2.7 million of unrecognized compensation expense related to the unvested restricted share units. The expense is expected to be recognized over a weighted average period of 1.18 years. The total fair value of these restricted share units vested during the three and six months ended June 30, 2014 was $0.01 million and $0.44 million, respectively. The total fair value of these restricted share units vested during the three and six months ended June 30, 2013 was $4.4 million and $4.7 million, respectively. | |||||||||||||||||
Changyou 2014 Share Incentive Plan | |||||||||||||||||
On June 25, 2014, Changyou reserved 2,000,000 of its Class A ordinary shares under the Changyou.com Limited 2014 Share Incentive Plan (the “Changyou 2014 Share Incentive Plan”) for the purpose of making share incentive awards to its executive officers and employees. As of June 30, 2014, Changyou had not made any awards under the Changyou 2014 Share Incentive Plan. | |||||||||||||||||
3) Sogou Inc. Share-based Awards | |||||||||||||||||
Sogou 2010 Share Incentive Plan | |||||||||||||||||
Sogou adopted a share incentive plan on October 20, 2010 and amended it on June 18, 2013 to increase to 36,000,000 the number of Sogou ordinary shares issuable under the plan (as amended, the “Sogou 2010 Share Incentive Plan”). Awards of share rights may be granted under the Sogou 2010 Share Incentive Plan to management and employees of Sogou and of any present or future parents or subsidiaries or variable interest entities of Sogou. The maximum term of any share right granted under the Sogou 2010 Share Incentive Plan is ten years from the grant date. The Sogou 2010 Share Incentive Plan will expire on October 19, 2020. As of June 30, 2014, Sogou had granted options for the purchase of 35,162,750 ordinary shares under the 2010 Sogou Share Incentive Plan. | |||||||||||||||||
Of the granted options for the purchase of 35,162,750 shares, options for the purchase of 22,932,750 shares will become vested and exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. The performance target for each installment will be set at the beginning of each vesting period. Accordingly, for purposes of recognition of share-based compensation expense, each installment is considered to be granted as of that date. As of June 30, 2014, performance targets had been set for options for the purchase of 15,748,075 shares, subject to vesting upon service period requirements for management and key employees being met and Sogou’s achievement of performance targets and, accordingly, such options were considered granted for purposes of recognition of share-based compensation expense. As of June 30, 2014, options for the purchase of 15,656,500 shares had become vested and exercisable because both the service period and the performance requirements had been met, and of such vested options, options for the purchase of 15,208,455 shares had been exercised. | |||||||||||||||||
Of the granted share options, options for the purchase of 8,270,000 shares will become vested and exercisable in four or five equal installments, with (i) the first installment vesting upon Sogou’s completion of an IPO of its ordinary shares (“Sogou’s IPO”) and the expiration of all underwriters’ lockup periods applicable to Sogou’s IPO, and (ii) each of the three or four subsequent installments vesting on the first, second, third and, if applicable, fourth anniversary dates, respectively, of the closing of Sogou’s IPO. | |||||||||||||||||
The remaining granted share options, for the purchase of 3,960,000 Sogou ordinary shares, will become vested and exercisable in four equal installments, with (i) the first installment vesting upon the first anniversary of the occurrence of either of the following events (“Event”): (a) completion of Sogou’s IPO; (b) the consolidation of Sogou with or the acquisition of Sogou by another person or entity in a sale of all or substantially all of its assets or shares, and (ii) each of the three subsequent installments vesting on the second, third and fourth anniversary dates, respectively, of the occurrence of an Event. If there has not been an Event within 24 months after June 15, 2013, all installments of these remaining options for the purchase of 3,960,000 Sogou ordinary shares will cease to vest. | |||||||||||||||||
All installments of options for the purchase of 8,270,000 shares that are subject to vesting upon completion of Sogou’s IPO and options for the purchase of 3,960,000 shares that are subject to vesting upon the completion of an Event were considered granted upon the issuance of the options. The completion of an Event is considered to be a performance condition of the awards. An IPO or other Event is not considered to be probable until it is completed. Under ASC 718, compensation cost should be accrued if it is probable that the performance condition will be achieved and should not be accrued if it is not probable that the performance condition will be achieved. As a result, no compensation expense will be recognized related to these options until the completion of an Event, and hence no share-based compensation expense was recognized for the three and six months ended June 30, 2014 for the options for the purchase of 8,270,000 shares that are subject to vesting upon completion of Sogou’s IPO or for the options for the purchase of 3,960,000 shares that are subject to vesting upon the completion of an Event. | |||||||||||||||||
A summary of share option activity under the Sogou 2010 Stock Incentive Plan as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||
Options | Number | Weighted | Weighted | ||||||||||||||
Of | Average | Average | |||||||||||||||
Shares | Exercise | Remaining | |||||||||||||||
(in thousands) | Price | Contractual | |||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding at January 1, 2014 | 17,953 | $ | 0.251 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Exercised | (5,174 | ) | 0.001 | ||||||||||||||
Forfeited or expired | (10 | ) | 0.001 | ||||||||||||||
Outstanding at June 30, 2014 | 12,769 | 0.353 | 8.61 | ||||||||||||||
Vested at June 30, 2014 and expected to vest thereafter | 528 | ||||||||||||||||
Exercisable at June 30, 2014 | 448 | ||||||||||||||||
For the three and six months ended June 30, 2014, total share-based compensation expense recognized for share options under the Sogou 2010 Share Incentive Plan was $539,000 and $922,000, respectively. For the three and six months ended June 30, 2013, total share-based compensation expense recognized for share options under the Sogou 2010 Share Incentive Plan was $132,000 and $148,000, respectively. | |||||||||||||||||
As of June 30, 2014, there was $5,000 of unrecognized compensation expense related to the unvested share options. The expense is expected to be recognized over a weighted average period of 0.09 years. | |||||||||||||||||
The fair value of the ordinary shares of Sogou was assessed using the income approach /discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the award were not publicly traded at the time of grant, and was determined with the assistance of a qualified professional appraiser using management’s estimates and assumptions. This assessment required complex and subjective judgments regarding Sogou’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. | |||||||||||||||||
The fair value of the options granted to Sogou management and key employees was estimated on the date of grant using the Binomial option—pricing model (the “BP Model”) with the following assumptions used: | |||||||||||||||||
Granted to Employees | 2014 | ||||||||||||||||
Average risk-free interest rate | 2.10%~2.87% | ||||||||||||||||
Exercise multiple | 2~3 | ||||||||||||||||
Expected forfeiture rate (post-vesting) | 1.3%~6.0% | ||||||||||||||||
Weighted average expected option life | 10 | ||||||||||||||||
Volatility rate | 47.00%~49.00% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Fair value | 0.67 | ||||||||||||||||
Sogou estimated the risk free rate based on the yield to maturity of China Sovereign bonds denominated in United States dollars as of the valuation date. An exercise multiple was estimated as the ratio of fair value of the shares over the exercise price as of the time the option is exercised, based on consideration of research studies regarding exercise patterns based on historical statistical data. In Sogou’s valuation analysis, a multiple of two was applied for employees and a multiple of three was applied for management. Sogou estimated the forfeiture rate to be 1.3% for Sogou management’s share options granted as of June 30, 2014 and 6.0% for Sogou employees’ share options granted as of June 30, 2014. The life of the share options is the contract life of the option. Based on the option agreement, the contract life of the option is 10 years. The expected volatility at the valuation date was estimated based on the historical volatility of comparable companies for the period before the grant date with length commensurate with the expected term of the options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield is estimated to be 0%. | |||||||||||||||||
Share-based Awards to Sohu Management | |||||||||||||||||
Under the Sohu Management Sogou Share Option Arrangement, which was approved by the boards of directors of Sohu and Sogou in March 2011, Sohu has the right to provide to Sohu management and key employees the opportunity to purchase from Sohu up to 12,000,000 ordinary shares of Sogou at a fixed exercise price of $0.625 per share. Of these 12,000,000 ordinary shares, 8,800,000 are Sogou ordinary shares previously held by Sohu and 3,200,000 are Sogou ordinary shares that were newly-issued on April 14, 2011 by Sogou to Sohu at a price of $0.625 per share, or a total of $2 million. As of June 30, 2014, Sohu had granted options for the purchase of 10,776,000 Sogou ordinary shares to Sohu management and key employees under the Sohu Management Sogou Share Option Arrangement. | |||||||||||||||||
Of the granted options for the purchase of 10,776,000 shares, options for the purchase of 8,376,000 shares will become vested and exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. The performance target for each installment will be set at the beginning of each vesting period. Accordingly, for purposes of recognition of share-based compensation expense, each installment is considered to be granted as of that date. As of June 30, 2014, performance targets had been set for options for the purchase of 6,585,750 shares vesting upon service period requirements for management and key employees being met and Sogou’s achievement of performance targets and, accordingly, such share options were considered granted. As of June 30, 2014, options for the purchase of 6,585,750 shares had become vested and exercisable because both the service period and the performance requirements had been met, and vested options for the purchase of 6,363,000 shares had been exercised. | |||||||||||||||||
The remaining options for the purchase of 2,400,000 shares will become vested and exercisable in five equal installments, with (i) the first installment vesting upon Sogou’s IPO and the expiration of all underwriters’ lockup periods applicable to the IPO, and (ii) each of the four subsequent installments vesting on the first, second, third and fourth anniversary dates, respectively, of the closing of Sogou’s IPO. All installments of the options for the purchase of 2,400,000 shares that are subject to vesting upon the completion of Sogou’s IPO were considered granted upon the issuance of the options. The completion of a firm commitment IPO is considered to be a performance condition of the awards. An IPO event is not considered to be probable until it is completed. Under ASC 718, compensation cost should be accrued if it is probable that the performance condition will be achieved and should not be accrued if it is not probable that the performance condition will be achieved. As a result, no compensation expense will be recognized related to these options until the completion of an IPO, and hence no share-based compensation expense was recognized for the three and six months ended June 30, 2014 for these options for the purchase of 2,400,000 shares. | |||||||||||||||||
A summary of share option activity as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||
Number | Weighted | Weighted | |||||||||||||||
Of | Average | Average | |||||||||||||||
Shares | Exercise | Remaining | |||||||||||||||
Contractual | |||||||||||||||||
Options | (in thousands) | Price | Life (Years) | ||||||||||||||
Outstanding at January 1, 2014 | 3,880 | $ | 0.625 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Exercised | (1,258 | ) | 0.625 | ||||||||||||||
Forfeited or expired | 0 | ||||||||||||||||
Outstanding at June 30, 2014 | 2,622 | 0.625 | 8.54 | ||||||||||||||
Vested at June 30, 2014 | 223 | ||||||||||||||||
Exercisable at June 30, 2014 | 223 | ||||||||||||||||
For both the three months and the six months ended June 30, 2014, total share-based compensation expense recognized for share options under the Sohu Management Sogou Share Option Arrangement was $1.3 million. For both the three months and the six months ended June 30, 2013, total share-based compensation expense recognized for share options under the Sohu Management Sogou Share Option Arrangement was $22,000. As of June 30, 2014, the unrecognized compensation expense was nil. | |||||||||||||||||
The method used to determine the fair value of share options granted to Sohu management and key employees was the same as the method used for the share options granted to Sogou’s management and key employees as described above, except for the assumptions used in the BP Model as presented below: | |||||||||||||||||
Granted to Employees | 2014 | ||||||||||||||||
Average risk-free interest rate | 2.10%~2.87% | ||||||||||||||||
Exercise multiple | 2~3 | ||||||||||||||||
Expected forfeiture rate (post-vesting) | 0%-8% | ||||||||||||||||
Weighted average expected option life | 10 | ||||||||||||||||
Volatility rate | 47.00%-48.00% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Fair value | 0.27-0.38 | ||||||||||||||||
Option Modification | |||||||||||||||||
In the first and second quarter of 2013, a portion of the share options granted under the Sogou 2010 Share Incentive Plan and the Sohu Management Sogou Share Option Arrangement were exercised early, and the resulting Sogou ordinary shares were transferred to trusts with the original option grantees as beneficiaries. The trusts will distribute the shares to those beneficiaries in installments based on the vesting requirements under the original option agreements. Although these trust arrangements caused a modification of the terms of these share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these shares resulted from the modification, and the remaining share-based compensation expense for these shares will continue to be recognized over the original remaining vesting period. | |||||||||||||||||
As of June 30, 2014, options for the purchase of 15,320,000 shares granted under the Sogou 2010 Share Incentive Plan and options for the purchase of 612,500 shares granted under the Sohu Management Sogou Share Option Arrangement, or options for the purchase of a total of 15,932,500 shares, had been exercised early but had not been distributed to the beneficiaries of the trusts. All of the early-exercised shares that were distributed to those beneficiaries by the trusts in accordance with the vesting requirements under the original option agreements have been included in the disclosures under the headings “Sogou 2010 Share Incentive Plan” and “Share-based Awards to Sohu Management” above. | |||||||||||||||||
Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses | |||||||||||||||||
Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 to measure the related compensation expense, based on the then-current fair value at each reporting date, which is deemed to have been incurred by Tencent as an investor on Sogou’s behalf. To determine the then-current fair value of the Tencent restricted share units granted to these employees, the public market price of the underlying shares at each reporting date was applied. Because Sogou is not required to reimburse Tencent for such share-based compensation expense, the related amount was recorded by Sogou as a capital contribution from Tencent. | |||||||||||||||||
As of June 30, 2014, unvested Tencent restricted share unit awards held by these employees provided for the issuance of up to 670,720 ordinary shares of Tencent, taking into consideration a five-for-one split of Tencent’s shares that became effective in May 2014. Share-based compensation expense of $1.8 million and $3.7 million, respectively, related to these Tencent restricted share units was recognized in the Group’s consolidated statements of comprehensive income for the three and six months ended June 30, 2014. As of June 30, 2014, there was $4.5 million of unrecognized compensation expense related to these unvested restricted share units. This amount is expected to be recognized over a weighted average period of 2.9 years. | |||||||||||||||||
Sogou Share Repurchase Transaction | |||||||||||||||||
In June 2014, Sogou repurchased approximately 4.2 million of its Class A Ordinary Shares from noncontrolling shareholders, some of whom are employees of the Group, for an aggregate repurchase price of $41.6 million, which exceeded the fair value of the ordinary shares. Under ASC 718, the excess of the repurchase price over the fair value of the equity instruments repurchased from employees should be recognized as additional compensation expense. Therefore, approximately $17.0 million of share-based compensation expense was recognized in the Sohu Group’s statements of comprehensive income as share-based compensation expense in connection with the repurchases. | |||||||||||||||||
4) Sohu Video Share-based Awards | |||||||||||||||||
On January 4, 2012, Sohu Video adopted the Video 2011 Share Incentive Plan, under which 25,000,000 ordinary shares of Sohu Video are reserved for the purpose of making share incentive awards to management and key employees of the video division and to Sohu management. The maximum term of any share incentive award granted under the Video 2011 Share Incentive Plan is ten years from the grant date. The Video 2011 Share Incentive Plan will expire on January 3, 2021. As of June 30, 2014, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been made under the Video 2011 Share Incentive Plan, and options for the purchase of 4,972,800 ordinary shares were vested. | |||||||||||||||||
For both the three months and the six months ended June 30, 2014, total share-based compensation expense recognized for vested options under the Video 2011 Share Incentive Plan was $4.2 million. | |||||||||||||||||
The method used to determine the fair value of share options granted was the same as the method used for the share options granted to Sogou’s management and key employees as described above, except for the assumptions used in the BP Model as presented below: | |||||||||||||||||
Assumptions Adopted | 2014 | ||||||||||||||||
Average risk-free interest rate | 3% | ||||||||||||||||
Exercise multiple | 2.8 | ||||||||||||||||
Expected forfeiture rate (post-vesting) | 10% | ||||||||||||||||
Weighted average expected option life | 7.5 | ||||||||||||||||
Volatility rate | 61% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Fair value | 0.85 | ||||||||||||||||
5) 7Road Share-based Awards | |||||||||||||||||
See Note 3—Share-Based Compensation Expense. |
Business_Transactions
Business Transactions | 6 Months Ended | |
Jun. 30, 2014 | ||
Business Transactions [Abstract] | ' | |
Business Transactions | ' | |
12. Business Transactions | ||
Sogou Transactions | ||
Sogou-Tencent Transactions | ||
On October 22, 2010, Sogou issued and sold 24.0 million, 14.4 million and 38.4 million, respectively, of its newly-issued Series A Preferred Shares to Alibaba Investments Limited (“Alibaba”), China Web and Photon for $15 million, $9 million, and $24 million, respectively. On June 29, 2012, Sohu purchased Alibaba’s 24.0 million Sogou Series A Preferred Shares for a purchase price of $25.8 million. | ||
On September 16, 2013, Sogou entered into a series of agreements with Tencent, Sohu Search and Photon pursuant to which Sogou issued Series B Preferred Shares and Class B Ordinary Shares to Tencent for a net amount of $448 million in cash and Tencent transferred its Soso search-related businesses and certain other assets to Sogou. Also on that date, Sogou entered into Repurchase Option Agreements with Sohu Search and Photon, and a Repurchase/Put Option Agreement with China Web, with respect to all of the Series A Preferred Shares of Sogou held by Sohu Search and China Web, and a portion of the Series A Preferred Shares of Sogou held by Photon. On September 17, 2013, Sogou paid a special dividend to the three holders of Series A Preferred Shares of Sogou in the aggregate amount of $301 million, of which Sohu Search received $161 million, Photon received $43 million, and China Web received $97 million. On December 2, 2013, Tencent invested $1.5 million in cash in Sogou’s VIE Sogou Information, as additional consideration for the Sogou-Tencent Transactions, in return for a 45% equity interest in Sogou Information. Through a share pledge agreement and an exclusive equity interest purchase right agreement between Tencent and Sogou Technology, and similar agreements between the other two shareholders of Sogou Information, Sogou Technology controls all shareholder voting rights in Sogou Information, has the power to direct the activities of Sogou Information, and is the primary beneficiary of Sogou Information, and Tencent and the other two shareholders of Sogou Information act as Sohu Technology’s nominees. | ||
On March 24, 2014, Sogou purchased from China Web, pursuant to the Repurchase/Put Option Agreement between Sogou and China Web, 14.4 million Series A Preferred Shares of Sogou, for an aggregate purchase price of $47.3 million. | ||
In June 2014, Sogou repurchased approximately 4.2 million of its Class A Ordinary Shares from noncontrolling shareholders, some of whom are employees of the Group, for an aggregate purchase price of $41.6 million. | ||
Sohu’s Shareholding in Sogou | ||
As of June 30, 2014, Sogou had outstanding a combined total of 357,389,288 ordinary shares and preferred shares held as follows: | ||
(i) | Sohu: | |
132,850,250 Class A Ordinary Shares and 24,000,000 Series A Preferred Shares. Of the Class A Ordinary Shares, 5,650,250 shares are subject to purchase from Sohu under options held by Sohu management and key employees. All of the 24,000,000 Series A Preferred Shares are subject to repurchase by Sogou commencing March 16, 2014; | ||
(ii) | Photon: | |
38,400,000 Series A Preferred Shares, of which 6,400,000 are subject to repurchase by Sogou commencing March 16, 2014; | ||
(iii) | Tencent: | |
6,757,875 Class A Ordinary Shares, 65,431,579 Series B Preferred Shares and 79,368,421 non-voting Class B Ordinary Shares; and | ||
(iv) | Various employees of Sogou and Sohu: 10,581,163 Class A Ordinary Shares. | |
Since Sohu controls the election of the Board of Directors of Sogou, Sohu is Sogou’s controlling shareholder. Therefore, Sohu consolidates Sogou in the Sohu Group’s consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu. | ||
Because no ordinary shares will be issued with respect to share options granted by Sogou until they are vested and exercised, share options granted by Sogou that have not vested and vested share options that have not yet been exercised are not included as outstanding shares of Sogou and have no impact on the Sohu Group’s basic net income per share. Unvested share options with performance targets achieved and vested share options that have not yet been exercised do, however, have a dilutive impact on the Sohu Group’s dilutive net income per share. See Note 15—Net Income /(Loss) per Share. | ||
Terms of Sogou Preferred Shares | ||
In connection with the Sogou-Tencent Transactions, Sogou’s shareholders adopted a Fifth Amended and Restated Memorandum of Association and Second Amended and Restated Articles of Association (together, the “Revised Sogou Memorandum and Articles”), which became effective on September 16, 2013. The following is a summary of some of the key terms of the Sogou Series A Preferred Shares and Series B Preferred Shares (collectively, the “Sogou Preferred Shares”) under the Revised Sogou Memorandum and Articles. | ||
Dividend Rights | ||
Sogou may not declare or pay dividends on its Class A Ordinary Shares or Class B Ordinary Shares (collectively, “Ordinary Shares”) unless the holders of the Sogou Preferred Shares then outstanding first receive a dividend on each outstanding Preferred Share in an amount at least equal to the sum of (i) the dividends that would have been payable to the holder of such Preferred Share if such share had been converted into Ordinary Shares, at the then-applicable conversion rate, immediately prior to the record date for such dividend, and (ii) all accrued and unpaid Accruing Dividends. “Accruing Dividends” are calculated from the date of issuance of the Series A Preferred Shares at the rate per annum of $0.0375 per Series A Preferred Share and from the date of issuance of the Series B Preferred Shares at the rate per annum of $0.411 per Series B Preferred Share. | ||
Liquidation Rights | ||
In the event of any “Liquidation Event,” such as the liquidation, dissolution or winding up of Sogou, a merger or consolidation of Sogou resulting in a change of control, the sale of substantially all of Sogou’s assets or similar events, the holders of Series B Preferred Shares are entitled to receive an amount per share equal to the greater of (i) $6.847 plus any unpaid Accruing Dividends or (ii) such amount per share as would have been payable if the Series B Preferred Shares had been converted into Ordinary Shares prior the Liquidation Event, and holders of Series A Preferred Shares are entitled to receive, after payment to the holders of the Series B Preferred Shares but before any payment to holders of Ordinary Shares, an amount equal to the greater of (i) 1.3 times their original investment in the Series A Preferred Shares plus all accrued but unpaid Accruing Dividends or (ii) such amount per share as would be payable if the Series A Preferred Shares had been converted into Ordinary Shares immediately prior to the Liquidation Event. | ||
Redemption Rights | ||
The Sogou Preferred Shares are not redeemable at the option of the holders. | ||
Conversion Rights | ||
Each Sogou Preferred Share is convertible, at the option of the holder, at any time, and without the payment of additional consideration by the holder. Each Sogou Preferred Share is convertible into such number of Class A Ordinary Shares as is determined, in the case of Series A Preferred Shares, by dividing $0.625 by the then-effective conversion price for Series A Preferred Shares, which is initially $0.625, and, in the case of Series B Preferred Shares, by dividing $7.267 by the then-effective conversion price for Series B Preferred Shares, which is initially $7.267. The conversion prices of the Sogou Preferred Shares are subject to adjustment on a weighted average basis upon the issuance of additional equity shares, or securities convertible into equity shares, at a price per share less than $0.625, in the case of Series A Preferred Shares, or less than $7.267, in the case of Series B Preferred Shares, subject to certain customary exceptions, such as shares issued pursuant to the Sogou 2010 Share Incentive Plan. Each Sogou Preferred Share will be automatically converted into Class A Ordinary Shares of Sogou upon the closing of a qualified initial public offering of Sogou based on the then-effective conversion ratio of such Sogou Preferred Share, which is currently one-for-one for both Series A Preferred Shares and Series B Preferred Shares. | ||
Voting Rights | ||
Each holder of Sogou Preferred Shares is entitled to cast the number of votes equal to the number of Class A Ordinary Shares into which the Sogou Preferred Shares held by such holder are then convertible. | ||
Other Rights | ||
The holders of Sogou Preferred Shares have various other rights typical of preferred share investments. | ||
Terms of Sogou Class A Ordinary Shares and Class B Ordinary Shares | ||
The Class A Ordinary Shares and Class B Ordinary Shares have identical rights, except that Class B Ordinary Shares do not have voting rights unless the holders of at least a majority of the then outstanding Class B Ordinary Shares elect, by written notice to Sogou, to convert them into shares with voting rights. | ||
Changyou Share Repurchase Transactions | ||
On July 27, 2013, Changyou’s Board of Directors authorized a share repurchase program of up to $100 million of the outstanding ADSs of Changyou over a two-year period from July 27, 2013 to July 26, 2015. During the six months ended June 30, 2014, Changyou did not repurchase any of its ADSs under the share repurchase program. |
Mezzanine_Equity
Mezzanine Equity | 6 Months Ended |
Jun. 30, 2014 | |
Mezzanine Equity [Abstract] | ' |
Mezzanine Equity | ' |
13. Mezzanine Equity | |
Mezzanine Equity consisted of noncontrolling interest in 7Road and a put option pursuant to which the noncontrolling shareholders would have had the right to put their ordinary shares in 7Road to Changyou at a pre-determined price if 7Road achieved specified performance milestones before the expiration of the put option and 7Road did not complete an IPO on NASDAQ, the New York Stock Exchange (the “NYSE”) or the Stock Exchange of Hong Kong (the “HKEX”). The put option was due to expire in 2014. Since the occurrence of the sale was not solely within the control of Changyou, the noncontrolling interest was classified as mezzanine equity instead of permanent equity in the Sohu Group’s and Changyou’s consolidated financial statements. | |
Under ASC 480-10, the Sohu Group calculated, on an accumulative basis from the acquisition date, (i) the amount of accretion that would increase the balance of noncontrolling interest to its estimated redemption value over the period from the date of the Shenzhen 7Road acquisition to the earliest redemption date of the noncontrolling interest in 7Road and (ii) the amount of net profit attributable to noncontrolling shareholders of 7Road based on their ownership percentage. The carrying value of the noncontrolling interest as mezzanine equity was adjusted by an accumulative amount equal to the higher of (i) and (ii). | |
On May 1, 2013, Changyou entered into an agreement to acquire all of the ordinary shares of 7Road held by the noncontrolling shareholders. The acquisition closed on June 5, 2013, and 7Road has been a wholly-owned subsidiary of Changyou since then. As the put option held by the owners of the noncontrolling interest lapsed upon the closing of Changyou’s acquisition of their shares in 7Road, there was no associated accretion and no mezzanine equity during and after the third quarter of 2013. | |
For the three and six months ended June 30, 2013, accretion charges of $7.1 million and $17.8 million, respectively, were recorded in the Sohu Group’s statements of comprehensive income as net income attributable to the mezzanine-classified noncontrolling interest shareholders of 7Road. There was no associated accretion in 2014, as no mezzanine equity existed after Changyou’s acquisition on June 5, 2013 of all of the ordinary shares of 7Road held by the noncontrolling shareholders. |
Noncontrolling_Interest
Noncontrolling Interest | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||||||
Noncontrolling Interest | ' | ||||||||||||||||
14. Noncontrolling Interest | |||||||||||||||||
The primary majority-owned subsidiaries and VIEs of the Sohu Group which are consolidated in its consolidated financial statements but with noncontrolling interest recognized are Changyou and Sogou. | |||||||||||||||||
Noncontrolling Interest for Changyou | |||||||||||||||||
As Sohu is Changyou’s controlling shareholder, Changyou’s financial results have been consolidated with those of Sohu for all periods presented. To reflect the economic interest in Changyou held by shareholders other than Sohu (the “Changyou noncontrolling shareholders”), Changyou’s net income/(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on their share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in Sohu’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. | |||||||||||||||||
Noncontrolling Interest for Sogou | |||||||||||||||||
Since Sohu controls the election of the Board of Directors of Sogou, Sohu is Sogou’s controlling shareholder. Therefore, Sogou’s financial results have been consolidated with those of Sohu for all periods presented. To reflect the economic interest in Sogou held by shareholders other than Sohu (the “Sogou noncontrolling shareholders”), Sogou’s net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity /(deficit) and adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Preferred Shares and Ordinary Shares are accounted for as a noncontrolling interest classified as permanent equity in the Sohu Group’s consolidated balance sheets, as redemption of the noncontrolling interest is solely within the control of Sohu. These treatments are based on the terms governing investment, and on the terms of the classes of Sogou shares held, by the noncontrolling shareholders in Sogou. | |||||||||||||||||
By virtue of these terms, Sogou’s losses have been and will be allocated in the following order: | |||||||||||||||||
(i) | net losses were allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares until their basis in Sogou decreased to zero; | ||||||||||||||||
(ii) | additional net losses were allocated to holders of Sogou Series A Preferred Shares until their basis in Sogou decreased to zero; | ||||||||||||||||
(iii) | additional net losses will be allocated to the holder of Sogou Series B Preferred Shares until its basis in Sogou decreases to zero; and | ||||||||||||||||
(iv) | further net losses will be allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. | ||||||||||||||||
Net | income from Sogou has been, and future net income from Sogou will be, allocated in the following order: | ||||||||||||||||
(i) | net income will be allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increases to zero; | ||||||||||||||||
(ii) | additional net income will be allocated to the holder of Sogou Series B Preferred Shares to bring its basis back; | ||||||||||||||||
(iii) | additional net income will be allocated to holders of Sogou Series A Preferred Shares to bring their basis back; | ||||||||||||||||
(iv) | further net income will be allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares to bring their basis back; and | ||||||||||||||||
(v) | further net income will be allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. | ||||||||||||||||
Noncontrolling Interest in the Consolidated Balance Sheets | |||||||||||||||||
As of June 30, 2014 and December 31, 2013, noncontrolling interest in the consolidated balance sheets was $414.0 million and $510.0 million, respectively. | |||||||||||||||||
As of | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Changyou | $ | 298,415 | $ | 307,898 | |||||||||||||
Sogou | 112,661 | 199,059 | |||||||||||||||
Others | 2,949 | 3,058 | |||||||||||||||
Total | $ | 414,025 | $ | 510,015 | |||||||||||||
Noncontrolling Interest of Changyou | |||||||||||||||||
As of June 30, 2014 and December 31, 2013, the noncontrolling interest of Changyou was recognized in the Sohu Group’s consolidated balance sheets, representing as of both dates a 32% economic interest in Changyou’s net assets held by shareholders other than Sohu and reflecting the reclassification of Changyou’s share-based compensation expense from shareholders’ additional paid-in capital to noncontrolling interest. | |||||||||||||||||
Noncontrolling Interest of Sogou | |||||||||||||||||
As of June 30, 2014 and December 31, 2013, the noncontrolling interest of Sogou was recognized in the Sohu Group’s consolidated balance sheets, representing Sogou’s cumulative results of operations attributable to shareholders other than Sohu, Sogou’s share-based compensation expense, and the investments of shareholders other than Sohu in Preferred Shares and Ordinary Shares of Sogou, the adjustment of the investment basis of shareholders other than Sohu due to the special dividend paid to holders of Series A Preferred Shares of Sogou on September 17, 2013, the repurchase of Sogou Series A Preferred Shares from China Web on March 24, 2014, and Sogou’s repurchase of Class A Ordinary Shares from noncontrolling shareholders in June 2014. | |||||||||||||||||
Noncontrolling Interest in the Consolidated Statements of Comprehensive Income | |||||||||||||||||
For the three and six months ended June 30, 2014, net loss attributable to the noncontrolling interest in the consolidated statements of comprehensive income was $9.4 million and $14.4 million, respectively, compared with net income attributable to the noncontrolling interest of $24.5 million and $47.6 million, respectively, for the three months and six months ended June 30, 2013. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Changyou | $ | 222 | $ | 24,656 | $ | (6,408 | ) | $ | 49,890 | ||||||||
Sogou | (9,853 | ) | (37 | ) | (8,735 | ) | (1,966 | ) | |||||||||
Others | 188 | (114 | ) | 765 | (353 | ) | |||||||||||
Total | $ | (9,443 | ) | $ | 24,505 | $ | (14,378 | ) | $ | 47,571 | |||||||
Noncontrolling Interest of Changyou | |||||||||||||||||
For the three months ended June 30, 2014 and 2013, the net income attributable to the noncontrolling interest of Changyou was recognized in the Sohu Group’s consolidated statements of comprehensive income, representing a 32% and a 33%, respectively, economic interest in Changyou attributable to shareholders other than Sohu. | |||||||||||||||||
Noncontrolling Interest of Sogou | |||||||||||||||||
For the three months ended June 30, 2014 and 2013, the net loss attributable to the noncontrolling interest of Sogou was recognized in the Sohu Group’s consolidated statements of comprehensive income, representing Sogou’s net loss attributable to shareholders other than Sohu. |
Net_Income_Loss_per_Share
Net Income /(Loss) per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Income /(Loss) per Share [Abstract] | ' | ||||||||||||||||
Net Income /(loss) per Share | ' | ||||||||||||||||
15. Net Income/(Loss) per Share | |||||||||||||||||
Basic net income /(loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income /(loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. The computation of diluted net income /(loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income /(loss) per share. For the three and six months ended June 30, 2014, 94,000 and 121,000, respectively, common shares potentially issuable upon the exercise or settlement of share-based awards using the treasury stock method were anti-dilutive and excluded from the denominator for calculation of diluted net loss per share. | |||||||||||||||||
Additionally, for purposes of calculating the numerator of diluted net income /(loss) per share, the net income /(loss) attributable to the Sohu Group is adjusted as follows. The adjustment will not be made if there is an anti-dilutive effect. | |||||||||||||||||
-1 | Changyou’s net income /(loss) attributable to the Sohu Group is determined using the percentage that the weighted average number of Changyou shares held by Sohu represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu of the total economic interest in Changyou, which is used for the calculation of basic net income per share. | ||||||||||||||||
In the calculation of the Sohu Group’s diluted net income /(loss) per share, assuming a dilutive effect, all of Changyou’s existing unvested restricted share units, and vested restricted share units that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu in Changyou to decrease. As a result, Changyou’s net income /(loss) attributable to the Sohu Group on a diluted basis decreased accordingly. The effect of this calculation is presented as “incremental dilution from Changyou” in the table below. Assuming an anti-dilutive effect, all of these Changyou restricted share units are excluded from the calculation of the Sohu Group’s diluted net income /(loss) per share. As a result, Changyou’s net income /(loss) attributable to the Sohu Group on a diluted basis equals the number used for the calculation of the Sohu Group’s basic net income /(loss) per share. | |||||||||||||||||
For the three months ended June 30, 2014, all of these Changyou restricted share units had a dilutive effect, and therefore were included in the calculation of the Sohu Group’s diluted net loss per share. This impact is presented as “incremental dilution from Changyou” in the table below. | |||||||||||||||||
For the six months ended June 30, 2014, all of these Changyou restricted share units had an anti-dilutive effect, and therefore were excluded in the calculation of the Sohu Group’s diluted net loss per share, and “incremental dilution from Changyou” in the table below was zero. | |||||||||||||||||
-2 | Sogou’s net income /(loss) attributable to the Sohu Group is determined using the percentage that the weighted average number of Sogou shares held by Sohu represents of the weighted average number of Sogou Preferred Shares and Ordinary Shares, shares issuable upon the conversion of convertible preferred shares under the if-converted method, and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and is not determined by allocating Sogou’s net income /(loss) to the Sohu Group using the methodology for the calculation of net income /(loss) attributable to the Sogou noncontrolling shareholders discussed in Note 14—Noncontrolling Interest. | ||||||||||||||||
In the calculation of the Sohu Group’s diluted net income /(loss) per share, assuming a dilutive effect, the percentage of the Sohu Group’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested share options with the performance targets achieved as well as vested but unexercised share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. The effect of this calculation is presented as “incremental dilution from Sogou” in the table below. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of the Sohu Group’s diluted income /(loss) per share. As a result, Sogou’s net income /(loss) attributable to the Sohu Group on a diluted basis equals the number used for the calculation of the Sohu Group’s basic net income /(loss) per share. | |||||||||||||||||
For the three and six months ended June 30, 2014, all of these Sogou shares and share options had a dilutive effect, and therefore were included in the calculation of the Sohu Group’s diluted net loss per share. This impact is presented as “incremental dilution from Sogou” in the table below. | |||||||||||||||||
As discussed in Note 1—The Company and Basis of Presentation, on March 24, 2014 Sogou purchased from China Web 14.4 million Series A Preferred Shares of Sogou for an aggregate purchase price of $47.3 million. The transaction gave rise to a deemed dividend amounting to $27.7 million, which was deemed to have been contributed by Sohu, as a holder of ordinary shares of Sogou, for the difference between the price Sogou paid to China Web for the Series A Preferred Shares and the carrying amount of these 14.4 million Series A Preferred Shares in the Group’s consolidated financial statements. This deemed dividend has been subtracted from net income attributable to Sohu.com Inc. for the six months ended June 30, 2014 in the table below when calculating the basic and diluted net loss per share attributable to Sohu.com Inc. | |||||||||||||||||
The following table presents the calculation of the Sohu Group’s basic and diluted net income /(loss) per share (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income /(loss) attributable to Sohu.com Inc., basic (after subtracting the deemed dividend to noncontrolling Sogou Series A Preferred shareholders) | $ | (41,090 | ) | $ | 21,626 | $ | (119,944 | ) | $ | 46,057 | |||||||
Effect of dilutive securities: | |||||||||||||||||
Incremental dilution from Changyou | (3 | ) | (101 | ) | 0 | (426 | ) | ||||||||||
Incremental dilution from Sogou | (3,416 | ) | (21 | ) | (2,170 | ) | (1,139 | ) | |||||||||
Net income /(loss) attributable to Sohu.com Inc., diluted | $ | (44,509 | ) | $ | 21,504 | $ | (122,114 | ) | $ | 44,492 | |||||||
Denominator: | |||||||||||||||||
Weighted average basic common shares outstanding | 38,475 | 38,259 | 38,443 | 38,214 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Share options and restricted share units | 0 | 233 | 0 | 247 | |||||||||||||
Weighted average diluted common shares outstanding | 38,475 | 38,492 | 38,443 | 38,461 | |||||||||||||
Basic net income /(loss) per share attributable to Sohu.com Inc. | $ | (1.07 | ) | $ | 0.57 | $ | (3.12 | ) | $ | 1.21 | |||||||
Diluted net income /(loss) per share attributable to Sohu.com Inc. | $ | (1.16 | ) | $ | 0.56 | $ | (3.18 | ) | $ | 1.16 | |||||||
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
16. Subsequent Events | |
On July 16, 2014, Changyou, through a wholly-owned subsidiary, entered into an investment agreement with MoboTap Inc. (“MoboTap”), a Cayman Islands company that is the mobile technology developer behind the Dolphin Browser, MoboTap’s subsidiaries and variable interest entities, and MoboTap’s shareholders pursuant to which Changyou will purchase from existing shareholders of MoboTap shares of MoboTap representing 51% of the equity interests in MoboTap on a fully-diluted basis for approximately $91 million in cash. | |
Changyou and MoboTap also entered into a subscription agreement pursuant to which Changyou will purchase $30 million in principal amount of a zero-coupon convertible bond issued by MoboTap that will be due in five years. Changyou will have the option, exercisable at any time when the bond is outstanding, to convert all or any part of the unpaid principal into shares of MoboTap at a conversion price that would result in Changyou’s interest in MoboTap increasing to 60% on a fully-diluted basis, measured as of the closing under the investment agreement, if the option is exercised in full. | |
Changyou, Baina, and MoboTap will also enter into a shareholder agreement pursuant to which Changyou will have the right to designate three of the five directors of MoboTap, including the chairman of the board; Changyou’s approval will be required for any proposed transfers of equity interests in MoboTap held by Baina; and Changyou will be entitled to customary pre-emptive rights with respect to any new issuance of equity interests in MoboTap. In addition, if MoboTap achieves specified performance milestones for 2016 and certain other conditions specified in the shareholder agreement are not met, the founders of MoboTap, through Baina, will have a one-time right to put to Changyou shares of MoboTap representing up to 15% of MoboTap for an aggregate price of up to $53 million. | |
The transactions contemplated by the investment agreement and related documents are being completed in three stages, with the first two occurring in July 2014, and the final step, Changyou’s purchase of the zero-coupon convertible bond, being expected to occur in August 2014, subject to receipt of regulatory approvals and other customary conditions. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Recently Issued Accounting Pronouncements [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
17. Recently Issued Accounting Pronouncements | |
The FASB issued Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Entities may “early adopt” the guidance for new disposals. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. | |
On May 28, 2014, the FASB and IASB issued their long-awaited converged standard on the recognition of revenue from contracts with customers. The standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally. The FASB is amending the FASB Accounting Standards Codification and creating a new Topic 606, Revenue from Contracts with Customers, to supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the amendments supersede some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. For a public entity, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. | |
In June 2014, under ASC 718, Compensation—Stock Compensation, the FASB issued Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. These amendments apply to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. For all entities, the amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||
Segment operating information by segment | ' | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 121,685 | $ | 13,400 | $ | 135,085 | $ | 90,951 | $ | 177,781 | $ | (3,666 | ) | $ | 400,151 | ||||||||||||||
Segment cost of revenues | (78,582 | ) | (6,815 | ) | (85,397 | ) | (39,988 | ) | (43,519 | ) | 217 | (168,687 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 43,103 | $ | 6,585 | 49,688 | 50,963 | 134,262 | (3,449 | ) | 231,464 | |||||||||||||||||||
SBC (2) in cost of revenues | (700 | ) | (482 | ) | (17 | ) | 0 | (1,199 | ) | ||||||||||||||||||||
Gross profit | 48,988 | 50,481 | 134,245 | (3,449 | ) | 230,265 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (21,825 | ) | (25,286 | ) | (48,977 | ) | 1,164 | (94,924 | ) | ||||||||||||||||||||
Sales and marketing | (54,494 | ) | (14,309 | ) | (69,387 | ) | 3,695 | (134,495 | ) | ||||||||||||||||||||
General and administrative | (12,075 | ) | (2,590 | ) | (22,452 | ) | (168 | ) | (37,285 | ) | |||||||||||||||||||
SBC (2) in operating expenses | (4,770 | ) | (20,603 | ) | (441 | ) | 448 | (25,366 | ) | ||||||||||||||||||||
Total operating expenses | (93,164 | ) | (62,788 | ) | (141,257 | ) | 5,139 | (292,070 | ) | ||||||||||||||||||||
Operating profit /(loss) | (44,176 | ) | (12,307 | ) | (7,012 | ) | 1,690 | (61,805 | ) | ||||||||||||||||||||
Other income /(expense) | 1,399 | 103 | 434 | (1,242 | ) | 694 | |||||||||||||||||||||||
Net interest income | 2,635 | 402 | 5,742 | 0 | 8,779 | ||||||||||||||||||||||||
Exchange difference | (14 | ) | (78 | ) | 151 | 0 | 59 | ||||||||||||||||||||||
Income /(loss) before income tax expense | (40,156 | ) | (11,880 | ) | (685 | ) | 448 | (52,273 | ) | ||||||||||||||||||||
Income tax (expense) /benefit | (452 | ) | 0 | 2,192 | 0 | 1,740 | |||||||||||||||||||||||
Net income /(loss) | $ | (40,608 | ) | $ | (11,880 | ) | $ | 1,507 | $ | 448 | $ | (50,533 | ) | ||||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 92,298 | $ | 17,837 | $ | 110,135 | $ | 49,874 | $ | 182,371 | $ | (3,476 | ) | $ | 338,904 | ||||||||||||||
Segment cost of revenues | (48,372 | ) | (9,800 | ) | (58,172 | ) | (24,495 | ) | (30,976 | ) | 96 | (113,547 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 43,926 | $ | 8,037 | 51,963 | 25,379 | 151,395 | (3,380 | ) | 225,357 | |||||||||||||||||||
SBC (2) in cost of revenues | (60 | ) | (3 | ) | (35 | ) | 0 | (98 | ) | ||||||||||||||||||||
Gross profit | 51,903 | 25,376 | 151,360 | (3,380 | ) | 225,259 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (22,115 | ) | (14,650 | ) | (26,188 | ) | 0 | (62,953 | ) | ||||||||||||||||||||
Sales and marketing | (46,960 | ) | (9,447 | ) | (18,450 | ) | 3,380 | (71,477 | ) | ||||||||||||||||||||
General and administrative | (9,699 | ) | (2,428 | ) | (13,113 | ) | 0 | (25,240 | ) | ||||||||||||||||||||
SBC (2) in operating expenses | (535 | ) | (261 | ) | (347 | ) | 2 | (1,141 | ) | ||||||||||||||||||||
Total operating expenses | (79,309 | ) | (26,786 | ) | (58,098 | ) | 3,382 | (160,811 | ) | ||||||||||||||||||||
Operating profit /(loss) | (27,406 | ) | (1,410 | ) | 93,262 | 2 | 64,448 | ||||||||||||||||||||||
Other income /(expense) | 937 | 82 | 513 | 0 | 1,532 | ||||||||||||||||||||||||
Net interest income | 1,171 | 272 | 4,055 | 0 | 5,498 | ||||||||||||||||||||||||
Exchange difference | (458 | ) | 143 | (1,669 | ) | 0 | (1,984 | ) | |||||||||||||||||||||
Income /(loss) before income tax expense | (25,756 | ) | (913 | ) | 96,161 | 2 | 69,494 | ||||||||||||||||||||||
Income tax (expense) /benefit | (2,366 | ) | (6 | ) | (13,879 | ) | 0 | (16,251 | ) | ||||||||||||||||||||
Net income /(loss) | $ | (28,122 | ) | $ | (919 | ) | $ | 82,282 | $ | 2 | $ | 53,243 | |||||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 226,255 | $ | 26,814 | $ | 253,069 | $ | 160,923 | $ | 358,534 | $ | (7,060 | ) | $ | 765,466 | ||||||||||||||
Segment cost of revenues | (139,451 | ) | (14,049 | ) | (153,500 | ) | (71,689 | ) | (82,663 | ) | 453 | (307,399 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 86,804 | $ | 12,765 | 99,569 | 89,234 | 275,871 | (6,607 | ) | 458,067 | |||||||||||||||||||
SBC (2) in cost of revenues | (344 | ) | (513 | ) | (128 | ) | 0 | (985 | ) | ||||||||||||||||||||
Gross profit | 99,225 | 88,721 | 275,743 | (6,607 | ) | 457,082 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (44,332 | ) | (49,469 | ) | (118,535 | ) | 2,343 | (209,993 | ) | ||||||||||||||||||||
Sales and marketing | (107,938 | ) | (25,349 | ) | (149,960 | ) | 7,101 | (276,146 | ) | ||||||||||||||||||||
General and administrative | (21,390 | ) | (5,187 | ) | (43,620 | ) | (344 | ) | (70,541 | ) | |||||||||||||||||||
SBC (2) in operating expenses | (7,515 | ) | (23,429 | ) | (637 | ) | 761 | (30,820 | ) | ||||||||||||||||||||
Total operating expenses | (181,175 | ) | (103,434 | ) | (312,752 | ) | 9,861 | (587,500 | ) | ||||||||||||||||||||
Operating profit /(loss) | (81,950 | ) | (14,713 | ) | (37,009 | ) | 3,254 | (130,418 | ) | ||||||||||||||||||||
Other income /(expense) | 3,427 | 2,459 | 1,051 | (2,493 | ) | 4,444 | |||||||||||||||||||||||
Net interest income | 4,549 | 854 | 11,833 | 0 | 17,236 | ||||||||||||||||||||||||
Exchange difference | (88 | ) | (163 | ) | 888 | 0 | 637 | ||||||||||||||||||||||
Income /(loss) before income tax expense | (74,062 | ) | (11,563 | ) | (23,237 | ) | 761 | (108,101 | ) | ||||||||||||||||||||
Income tax (expense) /benefit | (3,349 | ) | 0 | 4,875 | 0 | 1,526 | |||||||||||||||||||||||
Net income /(loss) | $ | (77,411 | ) | $ | (11,563 | ) | $ | (18,362 | ) | $ | 761 | $ | (106,575 | ) | |||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
Brand Advertising and Others | |||||||||||||||||||||||||||||
Brand | Others | Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||
Advertising | Advertising | ||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Revenues (1) | $ | 167,966 | $ | 36,240 | $ | 204,206 | $ | 89,204 | $ | 359,956 | $ | (6,866 | ) | $ | 646,500 | ||||||||||||||
Segment cost of revenues | (90,593 | ) | (20,343 | ) | (110,936 | ) | (45,285 | ) | (61,005 | ) | 220 | (217,006 | ) | ||||||||||||||||
Segment gross profit /(loss) | $ | 77,373 | $ | 15,897 | 93,270 | 43,919 | 298,951 | (6,646 | ) | 429,494 | |||||||||||||||||||
SBC (2) in cost of revenues | (138 | ) | (5 | ) | (25 | ) | 0 | (168 | ) | ||||||||||||||||||||
Gross profit | 93,132 | 43,914 | 298,926 | (6,646 | ) | 429,326 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Product development | (40,808 | ) | (27,431 | ) | (46,183 | ) | 0 | (114,422 | ) | ||||||||||||||||||||
Sales and marketing | (87,833 | ) | (17,374 | ) | (31,467 | ) | 6,646 | (130,028 | ) | ||||||||||||||||||||
General and administrative | (17,450 | ) | (4,068 | ) | (25,817 | ) | 0 | (47,335 | ) | ||||||||||||||||||||
SBC (2) in operating expenses | (1,159 | ) | (411 | ) | (589 | ) | 2 | (2,157 | ) | ||||||||||||||||||||
Total operating expenses | (147,250 | ) | (49,284 | ) | (104,056 | ) | 6,648 | (293,942 | ) | ||||||||||||||||||||
Operating profit /(loss) | (54,118 | ) | (5,370 | ) | 194,870 | 2 | 135,384 | ||||||||||||||||||||||
Other income /(expense) | 2,161 | 86 | 1,816 | 0 | 4,063 | ||||||||||||||||||||||||
Net interest income | 3,638 | 606 | 7,955 | 0 | 12,199 | ||||||||||||||||||||||||
Exchange difference | (582 | ) | 147 | (3,534 | ) | 0 | (3,969 | ) | |||||||||||||||||||||
Income /(loss) before income tax expense | (48,901 | ) | (4,531 | ) | 201,107 | 2 | 147,677 | ||||||||||||||||||||||
Income tax (expense) /benefit | (5,751 | ) | (6 | ) | (30,512 | ) | 0 | (36,269 | ) | ||||||||||||||||||||
Net income /(loss) | $ | (54,652 | ) | $ | (4,537 | ) | $ | 170,595 | $ | 2 | $ | 111,408 | |||||||||||||||||
Note (1): | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. | ||||||||||||||||||||||||||||
Note (2): | “SBC” stands for share-based compensation expense. | ||||||||||||||||||||||||||||
Segment assets information by segment | ' | ||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||
Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||||
Advertising | |||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 494,051 | $ | 163,090 | $ | 393,221 | $ | 0 | $ | 1,050,362 | |||||||||||||||||||
Accounts receivable, net | 107,497 | 19,902 | 37,599 | (92 | ) | 164,906 | |||||||||||||||||||||||
Fixed assets, net | 254,225 | 47,347 | 247,661 | 0 | 549,233 | ||||||||||||||||||||||||
Total assets (1) | $ | 1,138,858 | $ | 252,290 | $ | 1,397,671 | $ | (154,663 | ) | $ | 2,634,156 | ||||||||||||||||||
Note (1): | The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Brand | Sogou | Changyou | Eliminations | Consolidated | |||||||||||||||||||||||||
Advertising | |||||||||||||||||||||||||||||
and Others | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 498,058 | $ | 240,746 | $ | 548,484 | $ | 0 | $ | 1,287,288 | |||||||||||||||||||
Accounts receivable, net | 102,823 | 15,705 | 35,996 | (182 | ) | 154,342 | |||||||||||||||||||||||
Fixed assets, net | 257,307 | 60,461 | 246,674 | 0 | 564,442 | ||||||||||||||||||||||||
Total assets (1) | $ | 1,221,003 | $ | 350,256 | $ | 1,585,212 | $ | (157,756 | ) | $ | 2,998,715 | ||||||||||||||||||
Note (1): | The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. |
ShareBased_Compensation_Expens1
Share-Based Compensation Expense (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Share-Based Compensation Expense [Abstract] | ' | ||||||||||||||||
Share-based compensation expense recognized in costs and expenses | ' | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Share-based compensation expense | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenues | $ | 1,199 | $ | 98 | $ | 985 | $ | 168 | |||||||||
Product development expenses | 7,294 | 408 | 9,947 | 758 | |||||||||||||
Sales and marketing expenses | 2,111 | 201 | 2,814 | 373 | |||||||||||||
General and administrative expenses | 15,962 | 532 | 18,060 | 1,026 | |||||||||||||
$ | 26,566 | $ | 1,239 | $ | 31,806 | $ | 2,325 | ||||||||||
Share-based compensation expense recognized for share awards of Sohu, Changyou, Sogou and Sohu Video | ' | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Share-based compensation expense | 2014 | 2013 | 2014 | 2013 | |||||||||||||
For Sohu share-based awards | $ | 1,277 | $ | 722 | $ | 3,905 | $ | 1,583 | |||||||||
For Changyou share-based awards | 459 | 363 | 739 | 572 | |||||||||||||
For Sogou share-based awards (1) | 20,603 | 154 | 22,935 | 170 | |||||||||||||
For Sohu Video share-based awards | 4,227 | 0 | 4,227 | 0 | |||||||||||||
$ | 26,566 | $ | 1,239 | $ | 31,806 | $ | 2,325 | ||||||||||
Note (1): | Includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11—Sohu.com Inc. Shareholders’ Equity. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Financial instruments, measured at fair value | ' | ||||||||||||||||
Fair value measurements at reporting date using | |||||||||||||||||
Items | As of | Quoted Prices | Significant | Significant | |||||||||||||
June 30, | in Active Markets | Other | Unobservable | ||||||||||||||
2014 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Cash equivalents | $ | 411,671 | $ | 0 | $ | 411,671 | $ | 0 | |||||||||
Restricted time deposits | 381,363 | 0 | 381,363 | 0 | |||||||||||||
Total Assets | $ | 793,034 | $ | 0 | $ | 793,034 | $ | 0 | |||||||||
Fair value measurements at reporting date using | |||||||||||||||||
Items | As of | Quoted Prices | Significant | Significant | |||||||||||||
December 31, | in Active Markets | Other | Unobservable | ||||||||||||||
2013 | for Identical Assets | Observable | Inputs | ||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Cash equivalents | $ | 359,289 | $ | 0 | $ | 359,289 | $ | 0 | |||||||||
Restricted time deposits | 434,048 | 0 | 434,048 | 0 | |||||||||||||
Short-term investments | 2,827 | 0 | 2,827 | 0 | |||||||||||||
Investments in debt securities | 82,009 | 0 | 0 | 82,009 | |||||||||||||
Total Assets | $ | 878,173 | $ | 0 | $ | 796,164 | $ | 82,009 | |||||||||
Put option recognized as other short-term liability | $ | 3,888 | $ | 0 | $ | 0 | $ | 3,888 | |||||||||
Reconciliation of fair value measurements using significant unobservable inputs (level 3) | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Significant Unobservable Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Debt Securities | Put Option | ||||||||||||||||
Beginning balance at December 31, 2013 | $ | 82,009 | $ | 3,888 | |||||||||||||
Transactions: | |||||||||||||||||
Change in fair value | 0 | (2,304 | ) | ||||||||||||||
Currency translation adjustment | (736 | ) | 0 | ||||||||||||||
Financial instruments matured /exercised | (81,273 | ) | (1,584 | ) | |||||||||||||
Ending balance at June 30, 2014 | $ | 0 | $ | 0 | |||||||||||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Goodwill [Abstract] | ' | ||||||||||||||||
Change in carrying value of goodwill by segment | ' | ||||||||||||||||
Brand Advertising | Sogou | Changyou | Total | ||||||||||||||
and others | |||||||||||||||||
Balance as of December 31, 2013 | |||||||||||||||||
Goodwill | $ | 58,042 | $ | 6,290 | $ | 185,452 | $ | 249,784 | |||||||||
Accumulated impairment losses | (35,788 | ) | 0 | (5,201 | ) | (40,989 | ) | ||||||||||
$ | 22,254 | $ | 6,290 | $ | 180,251 | $ | 208,795 | ||||||||||
Transactions in 2014 | |||||||||||||||||
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 0 | 42 | 0 | 42 | |||||||||||||
Foreign currency translation adjustment | (1 | ) | (58 | ) | (1,237 | ) | (1,296 | ) | |||||||||
Balance as of June 30, 2014 | $ | 22,253 | $ | 6,274 | $ | 179,014 | $ | 207,541 | |||||||||
Balance as of June 30, 2014 | |||||||||||||||||
Goodwill | $ | 58,041 | $ | 6,274 | $ | 184,215 | $ | 248,530 | |||||||||
Accumulated impairment losses | (35,788 | ) | 0 | (5,201 | ) | (40,989 | ) | ||||||||||
$ | 22,253 | $ | 6,274 | $ | 179,014 | $ | 207,541 |
VIEs_Tables
VIEs (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
VIE [Abstract] | ' | ||||||||||||||||
Financial information of Consolidated VIEs | ' | ||||||||||||||||
As of | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
ASSETS: | |||||||||||||||||
Cash and cash equivalents | $ | 64,918 | $ | 112,316 | |||||||||||||
Short-term investments | 0 | 2,460 | |||||||||||||||
Accounts receivable, net | 91,350 | 95,595 | |||||||||||||||
Prepaid and other current assets | 36,884 | 41,838 | |||||||||||||||
Intercompany receivables due from the Company’s subsidiaries | 116,960 | 223,877 | |||||||||||||||
Total current assets | 310,112 | 476,086 | |||||||||||||||
Fixed assets, net | 10,351 | 8,190 | |||||||||||||||
Goodwill | 138,243 | 139,478 | |||||||||||||||
Intangible assets, net | 37,203 | 35,135 | |||||||||||||||
Other non-current assets | 68,719 | 61,550 | |||||||||||||||
Total assets | $ | 564,628 | $ | 720,439 | |||||||||||||
LIABILITIES: | |||||||||||||||||
Accounts payable | $ | 4,762 | $ | 16,167 | |||||||||||||
Accrued and other short-term liabilities | 107,071 | 343,834 | |||||||||||||||
Receipts in advance and deferred revenue | 43,050 | 60,140 | |||||||||||||||
Intercompany payables due to the Company’s subsidiaries | 217,889 | 12,059 | |||||||||||||||
Total current liabilities | 372,772 | 432,200 | |||||||||||||||
Other long-term liabilities | 6,158 | 9,560 | |||||||||||||||
Total liabilities | $ | 378,930 | $ | 441,760 | |||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net revenue | $ | 254,129 | $ | 254,165 | $ | 505,249 | $ | 500,586 | |||||||||
Net income /(loss) | $ | (43,785 | ) | $ | 9,090 | $ | (88,459 | ) | $ | 19,872 | |||||||
Six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net cash provided by operating activities | $ | 15,935 | $ | 2,795 | |||||||||||||
Net cash used in investing activities | (979 | ) | (991 | ) | |||||||||||||
Net cash provided by financing activities | $ | 0 | $ | 0 | |||||||||||||
Six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net cash provided by operating activities | $ | 23,802 | $ | 28,842 | |||||||||||||
Net cash used in investing activities | (84,578 | ) | (55,869 | ) | |||||||||||||
Net cash used in financing activities | $ | (793 | ) | $ | 0 | ||||||||||||
Sohucom_Inc_Shareholders_Equit1
Sohu.com Inc. Shareholders' Equity (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Sohu 2000 Stock Incentive Plan [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Share option activity | ' | ||||||||||||||||
Options | Number | Weighted | Weighted | Aggregate | |||||||||||||
Of | Average | Average | Intrinsic | ||||||||||||||
Shares | Exercise | Remaining | Value (1) | ||||||||||||||
(in thousands) | Price | Contractual | (in thousands) | ||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding at January 1, 2014 | 147 | $ | 18.87 | 1.39 | $ | 7,958 | |||||||||||
Exercised | (23 | ) | 18.62 | ||||||||||||||
Forfeited or expired | 0 | ||||||||||||||||
Outstanding at June 30, 2014 | 124 | 18.92 | 0.89 | 4,814 | |||||||||||||
Vested at June 30, 2014 | 124 | 18.92 | 0.89 | 4,814 | |||||||||||||
Exercisable at June 30, 2014 | 124 | 18.92 | 0.89 | 4,814 | |||||||||||||
Note (1): | The aggregate intrinsic value in the preceding table represents the difference between Sohu’s closing stock price of $57.69 on June 30, 2014 and the exercise price of share options. The total intrinsic value of share options exercised for the six months ended June 30, 2014 was $1.3 million. | ||||||||||||||||
Restricted share unit activity | ' | ||||||||||||||||
Restricted Share Units | Number of | Weighted-Average | |||||||||||||||
Units | Grant-Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 123 | $ | 61.27 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Vested | (121 | ) | 61.27 | ||||||||||||||
Forfeited | (2 | ) | 61.27 | ||||||||||||||
Unvested at June 30, 2014 | 0 | ||||||||||||||||
Expected to vest thereafter | 0 | ||||||||||||||||
Sohu 2010 Stock Incentive Plan [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Restricted share unit activity | ' | ||||||||||||||||
Restricted Share Units | Number of | Weighted-Average | |||||||||||||||
Units | Grant-Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 123 | $ | 84.82 | ||||||||||||||
Granted | 36 | 67.57 | |||||||||||||||
Vested | 0 | ||||||||||||||||
Forfeited | (1 | ) | 70.88 | ||||||||||||||
Unvested at June 30, 2014 | 158 | 80.91 | |||||||||||||||
Expected to vest thereafter | 118 | 54.46 | |||||||||||||||
Changyou's Share-based Awards Granted after IPO [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Restricted share unit activity | ' | ||||||||||||||||
Restricted Share Units | Number of | Weighted-Average | |||||||||||||||
Units | Grant-Date | ||||||||||||||||
(in thousands) | Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 218 | $ | 14.46 | ||||||||||||||
Granted | 160 | 13.8 | |||||||||||||||
Vested | (29 | ) | 16.32 | ||||||||||||||
Forfeited | (5 | ) | 17.19 | ||||||||||||||
Unvested at June 30, 2014 | 344 | 13.96 | |||||||||||||||
Expected to vest after June 30, 2014 | 331 | 13.97 | |||||||||||||||
Sogou 2010 Share Incentive Plan [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Share option activity | ' | ||||||||||||||||
Options | Number | Weighted | Weighted | ||||||||||||||
Of | Average | Average | |||||||||||||||
Shares | Exercise | Remaining | |||||||||||||||
(in thousands) | Price | Contractual | |||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding at January 1, 2014 | 17,953 | $ | 0.251 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Exercised | (5,174 | ) | 0.001 | ||||||||||||||
Forfeited or expired | (10 | ) | 0.001 | ||||||||||||||
Outstanding at June 30, 2014 | 12,769 | 0.353 | 8.61 | ||||||||||||||
Vested at June 30, 2014 and expected to vest thereafter | 528 | ||||||||||||||||
Exercisable at June 30, 2014 | 448 | ||||||||||||||||
Stock option assumptions | ' | ||||||||||||||||
Granted to Employees | 2014 | ||||||||||||||||
Average risk-free interest rate | 2.10%~2.87% | ||||||||||||||||
Exercise multiple | 2~3 | ||||||||||||||||
Expected forfeiture rate (post-vesting) | 1.3%~6.0% | ||||||||||||||||
Weighted average expected option life | 10 | ||||||||||||||||
Volatility rate | 47.00%~49.00% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Fair value | 0.67 | ||||||||||||||||
Sohu Management Sogou Share Option Arrangement [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Share option activity | ' | ||||||||||||||||
Number | Weighted | Weighted | |||||||||||||||
Of | Average | Average | |||||||||||||||
Shares | Exercise | Remaining | |||||||||||||||
Contractual | |||||||||||||||||
Options | (in thousands) | Price | Life (Years) | ||||||||||||||
Outstanding at January 1, 2014 | 3,880 | $ | 0.625 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Exercised | (1,258 | ) | 0.625 | ||||||||||||||
Forfeited or expired | 0 | ||||||||||||||||
Outstanding at June 30, 2014 | 2,622 | 0.625 | 8.54 | ||||||||||||||
Vested at June 30, 2014 | 223 | ||||||||||||||||
Exercisable at June 30, 2014 | 223 | ||||||||||||||||
Stock option assumptions | ' | ||||||||||||||||
Granted to Employees | 2014 | ||||||||||||||||
Average risk-free interest rate | 2.10%~2.87% | ||||||||||||||||
Exercise multiple | 2~3 | ||||||||||||||||
Expected forfeiture rate (post-vesting) | 0%-8% | ||||||||||||||||
Weighted average expected option life | 10 | ||||||||||||||||
Volatility rate | 47.00%-48.00% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Fair value | 0.27-0.38 | ||||||||||||||||
Video 2011 Share Incentive Plan [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Stock option assumptions | ' | ||||||||||||||||
Assumptions Adopted | 2014 | ||||||||||||||||
Average risk-free interest rate | 3% | ||||||||||||||||
Exercise multiple | 2.8 | ||||||||||||||||
Expected forfeiture rate (post-vesting) | 10% | ||||||||||||||||
Weighted average expected option life | 7.5 | ||||||||||||||||
Volatility rate | 61% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Fair value | 0.85 |
Noncontrolling_Interest_Tables
Noncontrolling Interest (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||||||
Noncontrolling interest in consolidated balance sheets | ' | ||||||||||||||||
As of | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Changyou | $ | 298,415 | $ | 307,898 | |||||||||||||
Sogou | 112,661 | 199,059 | |||||||||||||||
Others | 2,949 | 3,058 | |||||||||||||||
Total | $ | 414,025 | $ | 510,015 | |||||||||||||
Noncontrolling interest in consolidated statements of comprehensive income | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Changyou | $ | 222 | $ | 24,656 | $ | (6,408 | ) | $ | 49,890 | ||||||||
Sogou | (9,853 | ) | (37 | ) | (8,735 | ) | (1,966 | ) | |||||||||
Others | 188 | (114 | ) | 765 | (353 | ) | |||||||||||
Total | $ | (9,443 | ) | $ | 24,505 | $ | (14,378 | ) | $ | 47,571 | |||||||
Net_Income_Loss_per_Share_Tabl
Net Income /(Loss) per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Income /(Loss) per Share [Abstract] | ' | ||||||||||||||||
Calculation of basic and diluted net income /(loss) per share | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income /(loss) attributable to Sohu.com Inc., basic (after subtracting the deemed dividend to noncontrolling Sogou Series A Preferred shareholders) | $ | (41,090 | ) | $ | 21,626 | $ | (119,944 | ) | $ | 46,057 | |||||||
Effect of dilutive securities: | |||||||||||||||||
Incremental dilution from Changyou | (3 | ) | (101 | ) | 0 | (426 | ) | ||||||||||
Incremental dilution from Sogou | (3,416 | ) | (21 | ) | (2,170 | ) | (1,139 | ) | |||||||||
Net income /(loss) attributable to Sohu.com Inc., diluted | $ | (44,509 | ) | $ | 21,504 | $ | (122,114 | ) | $ | 44,492 | |||||||
Denominator: | |||||||||||||||||
Weighted average basic common shares outstanding | 38,475 | 38,259 | 38,443 | 38,214 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Share options and restricted share units | 0 | 233 | 0 | 247 | |||||||||||||
Weighted average diluted common shares outstanding | 38,475 | 38,492 | 38,443 | 38,461 | |||||||||||||
Basic net income /(loss) per share attributable to Sohu.com Inc. | $ | (1.07 | ) | $ | 0.57 | $ | (3.12 | ) | $ | 1.21 | |||||||
Diluted net income /(loss) per share attributable to Sohu.com Inc. | $ | (1.16 | ) | $ | 0.56 | $ | (3.18 | ) | $ | 1.16 | |||||||
The_Company_and_Basis_of_Prese1
The Company and Basis of Presentation (Search and Other Business, Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 17, 2013 | Jun. 30, 2014 | Sep. 16, 2013 | Sep. 16, 2013 | Sep. 17, 2013 | Sep. 16, 2013 | Sep. 17, 2013 | Jun. 30, 2014 | Sep. 16, 2013 | Sep. 17, 2013 | Mar. 24, 2014 | Sep. 16, 2013 | Sep. 16, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 02, 2013 |
Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou Information [Member] | |
Series A Preferred Shares [Member] | Class A Ordinary Shares [Member] | Tencent [Member] | Sohu Search [Member] | Sohu Search [Member] | Sohu Search [Member] | Photon [Member] | Photon [Member] | Photon [Member] | China Web [Member] | China Web [Member] | China Web [Member] | China Web [Member] | Sohu [Member] | Sohu [Member] | Tencent [Member] | |
persons | persons | Series A Preferred Shares [Member] | Repurchase Option [Member] | Series A Preferred Shares [Member] | Repurchase Option [Member] | Repurchase Option [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Repurchase Option [Member] | Put Option [Member] | Repurchase Option [Member] | |||||
Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash invested by Tencent | ' | ' | $448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.50 |
Option Agreement of Series A Preferred Shares, shares | ' | ' | ' | ' | ' | 24,000,000 | ' | 6,400,000 | 6,400,000 | ' | ' | 14,400,000 | 14,400,000 | ' | 24,000,000 | ' |
Option Agreement of Series A Preferred Shares, aggregate purchase price | ' | ' | ' | ' | ' | 78.8 | ' | ' | 21 | ' | ' | 47.3 | 47.3 | ' | ' | ' |
Number of designees elected as directors of shareholder | ' | ' | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special dividend paid to Series A Preferred Shareholders by Sogou | 301 | ' | ' | ' | 161 | ' | 43 | ' | ' | 97 | ' | ' | ' | ' | ' | ' |
Purchase of Series A Preferred Shares, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,400,000 | ' | ' | ' | ' | ' |
Purchase of Series A Preferred Shares, aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.3 | ' | ' | ' | ' | ' |
Shares repurchased | ' | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | $41.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voting power held by parent pursuant to Shareholders Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53.00% | ' | ' |
The_Company_and_Basis_of_Prese2
The Company and Basis of Presentation (VIE Consolidation and Reclassification of Mobile Business to Others Business, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 |
entities | |||
The Company and Basis of Presentation [Abstract] | ' | ' | ' |
Number of VIEs not consolidated | ' | ' | 2 |
Amount of revenues reclassified from mobile business to others business | $15.30 | $29.10 | ' |
Amount of costs reclassified from mobile business to others business | $9 | $18.20 | ' |
Segment_Information_Segment_Op
Segment Information (Segment Operating Information by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | $400,151 | $338,904 | $765,466 | $646,500 | ||||
Segment cost of revenues | -168,687 | -113,547 | -307,399 | -217,006 | ||||
Segment gross profit /(loss) | 231,464 | 225,357 | 458,067 | 429,494 | ||||
SBC in cost of revenues | -1,199 | [1] | -98 | [1] | -985 | [1] | -168 | [1] |
Gross profit | 230,265 | 225,259 | 457,082 | 429,326 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Product development | -94,924 | -62,953 | -209,993 | -114,422 | ||||
Sales and marketing | -134,495 | -71,477 | -276,146 | -130,028 | ||||
General and administrative | -37,285 | -25,240 | -70,541 | -47,335 | ||||
SBC in operating expenses | -25,366 | [1] | -1,141 | [1] | -30,820 | [1] | -2,157 | [1] |
Total operating expenses | -292,070 | -160,811 | -587,500 | -293,942 | ||||
Operating profit /(loss) | -61,805 | 64,448 | -130,418 | 135,384 | ||||
Other income /(expense) | 694 | 1,532 | 4,444 | 4,063 | ||||
Net interest income | 8,779 | 5,498 | 17,236 | 12,199 | ||||
Exchange difference | 59 | -1,984 | 637 | -3,969 | ||||
Income /(loss) before income tax expense | -52,273 | 69,494 | -108,101 | 147,677 | ||||
Income tax (expense) /benefit | 1,740 | -16,251 | 1,526 | -36,269 | ||||
Net income /(loss) | -50,533 | 53,243 | -106,575 | 111,408 | ||||
Operating Segments [Member] | Brand Advertising [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 121,685 | [2] | 92,298 | [2] | 226,255 | [2] | 167,966 | [2] |
Segment cost of revenues | -78,582 | -48,372 | -139,451 | -90,593 | ||||
Segment gross profit /(loss) | 43,103 | 43,926 | 86,804 | 77,373 | ||||
Operating Segments [Member] | Others [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 13,400 | [2] | 17,837 | [2] | 26,814 | [2] | 36,240 | [2] |
Segment cost of revenues | -6,815 | -9,800 | -14,049 | -20,343 | ||||
Segment gross profit /(loss) | 6,585 | 8,037 | 12,765 | 15,897 | ||||
Operating Segments [Member] | Brand Advertising and Others [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 135,085 | [2] | 110,135 | [2] | 253,069 | [2] | 204,206 | [2] |
Segment cost of revenues | -85,397 | -58,172 | -153,500 | -110,936 | ||||
Segment gross profit /(loss) | 49,688 | 51,963 | 99,569 | 93,270 | ||||
SBC in cost of revenues | -700 | [1] | -60 | [1] | -344 | [1] | -138 | [1] |
Gross profit | 48,988 | 51,903 | 99,225 | 93,132 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Product development | -21,825 | -22,115 | -44,332 | -40,808 | ||||
Sales and marketing | -54,494 | -46,960 | -107,938 | -87,833 | ||||
General and administrative | -12,075 | -9,699 | -21,390 | -17,450 | ||||
SBC in operating expenses | -4,770 | [1] | -535 | [1] | -7,515 | [1] | -1,159 | [1] |
Total operating expenses | -93,164 | -79,309 | -181,175 | -147,250 | ||||
Operating profit /(loss) | -44,176 | -27,406 | -81,950 | -54,118 | ||||
Other income /(expense) | 1,399 | 937 | 3,427 | 2,161 | ||||
Net interest income | 2,635 | 1,171 | 4,549 | 3,638 | ||||
Exchange difference | -14 | -458 | -88 | -582 | ||||
Income /(loss) before income tax expense | -40,156 | -25,756 | -74,062 | -48,901 | ||||
Income tax (expense) /benefit | -452 | -2,366 | -3,349 | -5,751 | ||||
Net income /(loss) | -40,608 | -28,122 | -77,411 | -54,652 | ||||
Operating Segments [Member] | Sogou [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 90,951 | [2] | 49,874 | [2] | 160,923 | [2] | 89,204 | [2] |
Segment cost of revenues | -39,988 | -24,495 | -71,689 | -45,285 | ||||
Segment gross profit /(loss) | 50,963 | 25,379 | 89,234 | 43,919 | ||||
SBC in cost of revenues | -482 | [1] | -3 | [1] | -513 | [1] | -5 | [1] |
Gross profit | 50,481 | 25,376 | 88,721 | 43,914 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Product development | -25,286 | -14,650 | -49,469 | -27,431 | ||||
Sales and marketing | -14,309 | -9,447 | -25,349 | -17,374 | ||||
General and administrative | -2,590 | -2,428 | -5,187 | -4,068 | ||||
SBC in operating expenses | -20,603 | [1] | -261 | [1] | -23,429 | [1] | -411 | [1] |
Total operating expenses | -62,788 | -26,786 | -103,434 | -49,284 | ||||
Operating profit /(loss) | -12,307 | -1,410 | -14,713 | -5,370 | ||||
Other income /(expense) | 103 | 82 | 2,459 | 86 | ||||
Net interest income | 402 | 272 | 854 | 606 | ||||
Exchange difference | -78 | 143 | -163 | 147 | ||||
Income /(loss) before income tax expense | -11,880 | -913 | -11,563 | -4,531 | ||||
Income tax (expense) /benefit | 0 | -6 | 0 | -6 | ||||
Net income /(loss) | -11,880 | -919 | -11,563 | -4,537 | ||||
Operating Segments [Member] | Changyou [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 177,781 | [2] | 182,371 | [2] | 358,534 | [2] | 359,956 | [2] |
Segment cost of revenues | -43,519 | -30,976 | -82,663 | -61,005 | ||||
Segment gross profit /(loss) | 134,262 | 151,395 | 275,871 | 298,951 | ||||
SBC in cost of revenues | -17 | [1] | -35 | [1] | -128 | [1] | -25 | [1] |
Gross profit | 134,245 | 151,360 | 275,743 | 298,926 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Product development | -48,977 | -26,188 | -118,535 | -46,183 | ||||
Sales and marketing | -69,387 | -18,450 | -149,960 | -31,467 | ||||
General and administrative | -22,452 | -13,113 | -43,620 | -25,817 | ||||
SBC in operating expenses | -441 | [1] | -347 | [1] | -637 | [1] | -589 | [1] |
Total operating expenses | -141,257 | -58,098 | -312,752 | -104,056 | ||||
Operating profit /(loss) | -7,012 | 93,262 | -37,009 | 194,870 | ||||
Other income /(expense) | 434 | 513 | 1,051 | 1,816 | ||||
Net interest income | 5,742 | 4,055 | 11,833 | 7,955 | ||||
Exchange difference | 151 | -1,669 | 888 | -3,534 | ||||
Income /(loss) before income tax expense | -685 | 96,161 | -23,237 | 201,107 | ||||
Income tax (expense) /benefit | 2,192 | -13,879 | 4,875 | -30,512 | ||||
Net income /(loss) | 1,507 | 82,282 | -18,362 | 170,595 | ||||
Eliminations [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | -3,666 | [2] | -3,476 | [2] | -7,060 | [2] | -6,866 | [2] |
Segment cost of revenues | 217 | 96 | 453 | 220 | ||||
Segment gross profit /(loss) | -3,449 | -3,380 | -6,607 | -6,646 | ||||
SBC in cost of revenues | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Gross profit | -3,449 | -3,380 | -6,607 | -6,646 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Product development | 1,164 | 0 | 2,343 | 0 | ||||
Sales and marketing | 3,695 | 3,380 | 7,101 | 6,646 | ||||
General and administrative | -168 | 0 | -344 | 0 | ||||
SBC in operating expenses | 448 | [1] | 2 | [1] | 761 | [1] | 2 | [1] |
Total operating expenses | 5,139 | 3,382 | 9,861 | 6,648 | ||||
Operating profit /(loss) | 1,690 | 2 | 3,254 | 2 | ||||
Other income /(expense) | -1,242 | 0 | -2,493 | 0 | ||||
Net interest income | 0 | 0 | 0 | 0 | ||||
Exchange difference | 0 | 0 | 0 | 0 | ||||
Income /(loss) before income tax expense | 448 | 2 | 761 | 2 | ||||
Income tax (expense) /benefit | 0 | 0 | 0 | 0 | ||||
Net income /(loss) | $448 | $2 | $761 | $2 | ||||
[1] | "SBC" stands for share-based compensation expense. | |||||||
[2] | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. |
Segment_Information_Segment_As
Segment Information (Segment Assets Information by Segment) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | $1,050,362 | $1,287,288 | $770,542 | $833,535 | ||
Accounts receivable, net | 164,906 | 154,342 | ' | ' | ||
Fixed assets, net | 549,233 | 564,442 | ' | ' | ||
Total assets | 2,634,156 | 2,998,715 | ' | ' | ||
Operating Segments [Member] | Brand Advertising and Others [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 494,051 | 498,058 | ' | ' | ||
Accounts receivable, net | 107,497 | 102,823 | ' | ' | ||
Fixed assets, net | 254,225 | 257,307 | ' | ' | ||
Total assets | 1,138,858 | [1] | 1,221,003 | [1] | ' | ' |
Operating Segments [Member] | Sogou [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 163,090 | 240,746 | ' | ' | ||
Accounts receivable, net | 19,902 | 15,705 | ' | ' | ||
Fixed assets, net | 47,347 | 60,461 | ' | ' | ||
Total assets | 252,290 | [1] | 350,256 | [1] | ' | ' |
Operating Segments [Member] | Changyou [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 393,221 | 548,484 | ' | ' | ||
Accounts receivable, net | 37,599 | 35,996 | ' | ' | ||
Fixed assets, net | 247,661 | 246,674 | ' | ' | ||
Total assets | 1,397,671 | [1] | 1,585,212 | [1] | ' | ' |
Eliminations [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | ' | ' | ||
Accounts receivable, net | -92 | -182 | ' | ' | ||
Fixed assets, net | 0 | 0 | ' | ' | ||
Total assets | ($154,663) | [1] | ($157,756) | [1] | ' | ' |
[1] | The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. |
ShareBased_Compensation_Expens2
Share-Based Compensation Expense (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 04, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 28, 2013 | Nov. 02, 2012 | Jul. 10, 2012 | Jun. 30, 2014 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Sep. 30, 2013 | Jun. 28, 2013 | |
Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | 7Road [Member] | |||||
Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | 7Road 2012 Share Incentive Plan [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme II [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme II [Member] | |||||||||
Stock Options [Member] | Stock Options [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Restricted Share Units [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | employees | Restricted Share Units [Member] | ||||||||||||||
Stock Options [Member] | employees | First Anniversary [Member] | Second Anniversary [Member] | Third Anniversary [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | 15,100,000 | 5,100,000 | ' | ' | ' | ' | ' | ' | ' |
Number of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,368,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,972,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | $4,227,000 | $0 | $4,227,000 | $0 | $4,200,000 | $4,200,000 | ' | ' | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares on a fully-diluted basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.70% | 5.10% | ' | ' | ' | ' | ' | ' | ' |
Employees holding the restricted share units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of accumulated restricted share units granted under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,223,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment price for each restricted share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.90 | ' | ' | ' | ' | ' |
Ratio of restricted share unit to be vested and payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 30.00% | 30.00% | ' | ' |
Vesting period commencing on grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years |
Employees newly involved under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48 | ' |
Incremental compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' | ' | ' | ' |
Capitalized share-based compensation expense | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Expens3
Share-Based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 |
Cost of revenues [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 1,199,000 | 98,000 | 985,000 | 168,000 |
Product development expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 7,294,000 | 408,000 | 9,947,000 | 758,000 |
Sales and marketing expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 2,111,000 | 201,000 | 2,814,000 | 373,000 |
General and administrative expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $15,962,000 | $532,000 | $18,060,000 | $1,026,000 |
ShareBased_Compensation_Expens4
Share-Based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu, Changyou, Sogou and Sohu Video) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | ||||
Sohu [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation expense | 1,277,000 | 722,000 | 3,905,000 | 1,583,000 | ||||
Changyou [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation expense | 459,000 | 363,000 | 739,000 | 572,000 | ||||
Sogou [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation expense | 20,603,000 | [1] | 154,000 | [1] | 22,935,000 | [1] | 170,000 | [1] |
Sohu Video [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation expense | $4,227,000 | $0 | $4,227,000 | $0 | ||||
[1] | Includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11 - Sohu.com Inc. Shareholders' Equity. |
Changyou_Employee_Incentive_Pl1
Changyou Employee Incentive Plans (Details) (Changyou [Member], USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Changyou Employee Incentive Plan, Plan One and Plan Two [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' |
Maximum percentage of annual adjusted net profits authorized to distribute to eligible employees | ' | 10.00% |
Compensation expense | $1.50 | $2.80 |
Changyou Employee Incentive Plan, Plan One [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' |
Term of employee incentive plans | ' | '10 years |
Maximum percentage of annual adjusted net profits authorized to distribute to eligible employees | ' | 5.00% |
Requisite service period | ' | '4 years |
Amortization period of present value of amounts forecasted to be distributed under plans | ' | '4 years |
Changyou Employee Incentive Plan, Plan Two [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' |
Term of employee incentive plans | ' | '10 years |
Maximum percentage of annual adjusted net profits authorized to distribute to eligible employees | ' | 5.00% |
Requisite service period | ' | '4 years |
Amortization period of present value of amounts forecasted to be distributed under plans | ' | '4 years |
Changyou Employee Incentive Plan, Plan Three [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' |
Term of employee incentive plans | ' | '10 years |
Compensation expense | $1.50 | $26.70 |
Maximum percentage of annual adjusted net profits of projects authorized to distribute to eligible employees | ' | 20.00% |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term investments | $0 | ' |
Put option recognized as other short-term liability | 0 | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 411,671,000 | 359,289,000 |
Restricted time deposits | 381,363,000 | 434,048,000 |
Short-term investments | ' | 2,827,000 |
Investments in debt securities | ' | 82,009,000 |
Total Assets | 793,034,000 | 878,173,000 |
Put option recognized as other short-term liability | ' | 3,888,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Restricted time deposits | 0 | 0 |
Short-term investments | ' | 0 |
Investments in debt securities | ' | 0 |
Total Assets | 0 | 0 |
Put option recognized as other short-term liability | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 411,671,000 | 359,289,000 |
Restricted time deposits | 381,363,000 | 434,048,000 |
Short-term investments | ' | 2,827,000 |
Investments in debt securities | ' | 0 |
Total Assets | 793,034,000 | 796,164,000 |
Put option recognized as other short-term liability | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Restricted time deposits | 0 | 0 |
Short-term investments | ' | 0 |
Investments in debt securities | ' | 82,009,000 |
Total Assets | 0 | 82,009,000 |
Put option recognized as other short-term liability | ' | $3,888,000 |
Fair_Value_Measurements_Reconc
Fair Value Measurements (Reconciliation of Fair Value Measurements of Assets) (Details) (Debt Securities [Member], USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Debt Securities [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Beginning balance | $82,009 |
Transactions: | ' |
Change in fair value | 0 |
Currency translation adjustment | -736 |
Financial instruments matured /exercised | -81,273 |
Ending balance | $0 |
Fair_Value_Measurements_Reconc1
Fair Value Measurements (Reconciliation of Fair Value Measurements of Liabilities) (Details) (Put Option [Member], USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Put Option [Member] | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Beginning balance | $3,888 |
Transactions: | ' |
Change in fair value | -2,304 |
Currency translation adjustment | 0 |
Financial instruments matured /exercised | -1,584 |
Ending balance | $0 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Share data in Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 24, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Photon [Member] | Sogou [Member] | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | China Web [Member] | |||||||
Series A Preferred Shares [Member] | |||||||||||||
USD ($) | |||||||||||||
Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, maximum of original maturities | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Time Deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of bank loans | $257,000,000 | ' | ' | $257,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income from restricted time deposits securing loans | 3,700,000 | ' | 3,100,000 | 7,900,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense on bank loans | 1,200,000 | ' | 2,200,000 | 2,900,000 | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted time deposits, collateral for credit facilities | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' |
Short-term Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in financial instruments | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of short-term investments | 0 | ' | 800,000 | 16,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in Debt Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt security, principal amount | ' | ' | ' | ' | ' | ' | 74,600,000 | ' | 74,600,000 | 500,000,000 | ' | ' | ' |
Convertible debt security, frequency of periodic payment | ' | ' | ' | ' | ' | ' | ' | ' | 'quarterly | 'quarterly | ' | ' | ' |
Convertible debt security, interest rate for initial period | ' | ' | ' | ' | ' | ' | ' | ' | 3.80% | 3.80% | ' | ' | ' |
Convertible debt security, initial maturity period | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months | ' | ' | ' |
Convertible debt security, additional maturity period | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | '6 months | ' | ' | ' |
Convertible debt security, interest rate for extension period | ' | ' | ' | ' | ' | ' | ' | ' | 6.80% | 6.80% | ' | ' | ' |
Date to receive option to convert debt securities to equity interest | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-14 | 31-Mar-14 | ' | ' | ' |
Convertible debt security, principal amount repaid | ' | ' | ' | ' | ' | ' | ' | ' | 81,300,000 | 500,000,000 | ' | ' | ' |
Interest income from debt security | ' | ' | ' | ' | ' | ' | 0 | 1,390,000 | 1,370,000 | ' | 2,740,000 | ' | ' |
Change in fair value of investments in debt securities | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | 0 | ' | ' |
Repurchase Options and Put Option for Sogou Series A Preferred Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of Series A Preferred Shares, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.4 |
Purchase of Series A Preferred Shares, aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,300,000 |
Repurchase option recognized as additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' |
Change in fair value of put option | ' | 2,300,000 | ' | 2,304,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Put option recognized as other short-term liability | $0 | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | $249,784 |
Accumulated impairment losses, Beginning Balance | -40,989 |
Goodwill, Net, Beginning Balance | 208,795 |
Transactions in 2014 | ' |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 42 |
Foreign currency translation adjustment | -1,296 |
Goodwill, Ending Balance | 248,530 |
Accumulated impairment losses, Ending Balance | -40,989 |
Goodwill, Net, Ending Balance | 207,541 |
Brand Advertising and Others [Member] | ' |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | 58,042 |
Accumulated impairment losses, Beginning Balance | -35,788 |
Goodwill, Net, Beginning Balance | 22,254 |
Transactions in 2014 | ' |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 0 |
Foreign currency translation adjustment | -1 |
Goodwill, Ending Balance | 58,041 |
Accumulated impairment losses, Ending Balance | -35,788 |
Goodwill, Net, Ending Balance | 22,253 |
Sogou [Member] | ' |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | 6,290 |
Accumulated impairment losses, Beginning Balance | 0 |
Goodwill, Net, Beginning Balance | 6,290 |
Transactions in 2014 | ' |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 42 |
Foreign currency translation adjustment | -58 |
Goodwill, Ending Balance | 6,274 |
Accumulated impairment losses, Ending Balance | 0 |
Goodwill, Net, Ending Balance | 6,274 |
Changyou [Member] | ' |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | 185,452 |
Accumulated impairment losses, Beginning Balance | -5,201 |
Goodwill, Net, Beginning Balance | 180,251 |
Transactions in 2014 | ' |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 0 |
Foreign currency translation adjustment | -1,237 |
Goodwill, Ending Balance | 184,215 |
Accumulated impairment losses, Ending Balance | -5,201 |
Goodwill, Net, Ending Balance | $179,014 |
Taxation_PRC_Corporate_Income_
Taxation (PRC Corporate Income Tax, Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax and Tax Rate [Line Items] | ' |
Unified income tax rate | 25.00% |
High and New Technology Enterprises [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Preferential income tax rate period (years) | '3 years |
Sohu Era [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Sohu Media [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Sohu Internet [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Sogou Technology [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Sogou Information [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Gamease [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Shenzhen 7Road [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 15.00% |
Software Enterprise [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 12.50% |
Preferential income tax rate period (years) | '3 years |
Income tax exemption period beginning with first profitable year | '2 years |
Tax rate reduction rate | 50.00% |
Gamespace [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 12.50% |
Shanghai ICE [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 12.50% |
Key National Software Enterprise [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 10.00% |
Preferential income tax rate period (years) | '2 years |
AmazGame [Member] | ' |
Income Tax and Tax Rate [Line Items] | ' |
Preferential income tax rate | 10.00% |
Taxation_PRC_Withholding_Tax_o
Taxation (PRC Withholding Tax on Dividends, Narrative) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Withholding tax on dividends [Line Items] | ' |
Withholding tax rate on dividends, foreign invested enterprises distributed to holding companies outside mainland China | 10.00% |
Deferred tax liabilities related to withholding tax | $20.60 |
Hong Kong [Member] | ' |
Withholding tax on dividends [Line Items] | ' |
Withholding tax rate on dividends, foreign invested enterprises distributed to holding companies outside mainland China | 10.00% |
Preferential withholding tax rate on dividends, distributed to holding companies outside mainland China | 5.00% |
Taxation_PRC_Value_Added_Tax_a
Taxation (PRC Value Added Tax and Business Tax, Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Advertising and search revenues and online game revenues from Changyou's Web game operations not developed in house [Member] | ' |
Business Tax and Value Added Tax [Line Items] | ' |
Value-added tax rate in pilot program | 6.00% |
MMOG operations revenues [Member] | ' |
Business Tax and Value Added Tax [Line Items] | ' |
Business tax rate | 5.00% |
Sale of software revenues derived from 7Road [Member] | ' |
Business Tax and Value Added Tax [Line Items] | ' |
Value-added tax rate | 17.00% |
Value-added tax rate, immediate tax refund rate | 14.00% |
Value-added tax rate, net rate | 3.00% |
Taxation_US_Corporate_Income_T
Taxation (U.S. Corporate Income Tax, Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Minimum [Member] | ' |
U.S. Corporate Income Tax [Line Items] | ' |
U.S. corporate income tax rate | 34.00% |
Maximum [Member] | ' |
U.S. Corporate Income Tax [Line Items] | ' |
U.S. corporate income tax rate | 35.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Bandwidth purchases [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Amount of commitments | $76.30 |
Video content purchases [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Amount of commitments | 52.2 |
Operating lease [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Amount of commitments | 45.4 |
Purchase of games developed by third-parties [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Amount of commitments | 44.8 |
Purchase of cinema advertisement slot rights [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Amount of commitments | 30.2 |
Other content and service purchases [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Amount of commitments | $28 |
Contingent_Consideration_Narra
Contingent Consideration (Narrative) (Details) (Changyou [Member], USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Nov. 29, 2013 | Dec. 24, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Doyo [Member] | Doyo [Member] | Doyo [Member] | TalkTalk [Member] | TalkTalk [Member] | TalkTalk [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' | ' |
Undiscounted amounts of payment under contingent consideration agreement, minimum | ' | ' | $0 | ' | ' | ' |
Undiscounted amounts of payment under contingent consideration agreement, maximum | ' | ' | 7,300,000 | ' | ' | ' |
Fair value of contingent consideration | ' | ' | 4,800,000 | ' | ' | ' |
Indemnification assets involved | ' | ' | 0 | ' | ' | ' |
Percentage of additional shares Changyou could acquire under the contingent consideration agreement, minimum | ' | ' | ' | 0.00% | ' | ' |
Percentage of additional shares Changyou could acquire under the contingent consideration agreement, maximum | ' | ' | ' | 7.50% | ' | ' |
Fair value of right recognized as contingent consideration | ' | ' | ' | 0 | ' | ' |
Financial impact on recognition of noncontrolling interest | ' | ' | ' | 0 | ' | ' |
Changes in fair value of contingent consideration recognized as liabilities | 0 | 0 | ' | ' | ' | ' |
Changes in fair value of contingent consideration recognized as assets | ' | ' | ' | ' | $0 | $0 |
VIEs_VIEs_Consolidated_within_
VIEs (VIEs Consolidated within Sohu Group, Basic Information, Narrative) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | 1-May-13 | Jun. 30, 2014 | Dec. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | entities | Consolidated VIEs [Member] | High Century [Member] | High Century [Member] | High Century [Member] | Heng Da Yi Tong [Member] | Heng Da Yi Tong [Member] | Heng Da Yi Tong [Member] | Sohu Internet [Member] | Sohu Internet [Member] | Sohu Internet [Member] | SohuPay [Member] | SohuPay [Member] | Donglin [Member] | Donglin [Member] | Donglin [Member] | Pilot New Era [Member] | Pilot New Era [Member] | Pilot New Era [Member] | Focus Yiju [Member] | Focus Yiju [Member] | Tianjin Jinhu [Member] | Tianjin Jinhu [Member] | Tianjin Jinhu [Member] | Sogou Information [Member] | Sogou Information [Member] | Sogou Information [Member] | Sogou Information [Member] | Shi Ji Guang Su [Member] | Shi Ji Guang Su [Member] | Gamease [Member] | Gamease [Member] | Gamease [Member] | Shanghai ICE [Member] | Shanghai ICE [Member] | Shanghai ICE [Member] | Guanyou Gamespace [Member] | Guanyou Gamespace [Member] | Guanyou Gamespace [Member] | Zhi Hui You [Member] | Zhi Hui You [Member] | Zhi Hui You [Member] | Zhi Hui You [Member] | Shenzhen 7Road [Member] | Shenzhen 7Road [Member] | Shenzhen 7Road [Member] | Shenzhen 7Road [Member] | Doyo [Member] | Doyo [Member] | Changyou e-pay [Member] | Changyou e-pay [Member] | Aishouxin [Member] | Aishouxin [Member] | Changyou Thai [Member] | Changyou Thai [Member] | Changyou Thai [Member] | GoodFeel [Member] | GoodFeel [Member] | GoodFeel [Member] | 21 East Beijing [Member] | 21 East Beijing [Member] | Yi He Jia Xun [Member] | Yi He Jia Xun [Member] | Yi He Jia Xun [Member] |
Dr. Charles Zhang [Member] | Wei Li [Member] | Dr. Charles Zhang [Member] | Wei Li [Member] | High Century [Member] | Heng Da Yi Tong [Member] | Sohu Internet [Member] | High Century [Member] | Sohu Internet [Member] | High Century [Member] | Sohu Internet [Member] | High Century [Member] | Ye Deng [Member] | Xuemei Zhang [Member] | High Century [Member] | Xiaochuan Wang [Member] | Tencent [Member] | Sogou Information [Member] | Tao Wang [Member] | Dewen Chen [Member] | Runa Pi [Member] | Rong Qi [Member] | Tao Wang [Member] | Dewen Chen [Member] | Jing Zhou [Member] | A third party entity [Member] | Guanyou Gamespace [Member] | Gamease [Member] | Gamease [Member] | Gamease [Member] | Guanyou Gamespace [Member] | Gamease [Member] | Gamease [Member] | A third party entity [Member] | Changyou.com HK Limited [Member] | Jing Zhou [Member] | James Deng [Member] | High Century [Member] | Gang Fang [Member] | Yanfeng Lv [Member] | |||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of VIEs not consolidated | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of loans due from related parties | $14.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered capital and PRC statutory reserves | ' | 56.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered capital | ' | ' | $4.60 | ' | ' | $1.20 | ' | ' | $1.60 | ' | ' | $16.40 | ' | $1.50 | ' | ' | $0.70 | ' | ' | $1.60 | ' | $0.50 | ' | ' | $2.50 | ' | ' | ' | $3.20 | ' | $1.30 | ' | ' | $1.20 | ' | ' | $1.50 | ' | ' | $1.60 | ' | ' | ' | $1.50 | ' | ' | ' | $1.60 | ' | $1.60 | ' | $2.40 | ' | $0.30 | ' | ' | $1.20 | ' | ' | $1.60 | ' | $2.10 | ' | ' |
Ownership percentage | ' | ' | ' | 80.00% | 20.00% | ' | 80.00% | 20.00% | ' | 75.00% | 25.00% | ' | 100.00% | ' | 50.00% | 50.00% | ' | 50.00% | 50.00% | ' | 100.00% | ' | 50.00% | 50.00% | ' | 45.00% | 10.00% | 45.00% | ' | 100.00% | ' | 60.00% | 40.00% | ' | 50.00% | 50.00% | ' | 60.00% | 40.00% | ' | 50.00% | 50.00% | 100.00% | ' | ' | 100.00% | ' | ' | 100.00% | ' | 100.00% | ' | 100.00% | ' | 51.00% | 49.00% | ' | 41.90% | 58.10% | ' | 100.00% | ' | 50.00% | 50.00% |
Former name of VIE | ' | ' | ' | ' | ' | 'Beijing Sohu Entertainment Culture Media Co., Ltd. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquired equity interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.74% | ' | 68.26% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VIEs_VIEs_Consolidated_within_1
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $1,050,362 | $770,542 | $1,050,362 | $770,542 | $1,287,288 | $833,535 |
Short-term investments | 0 | ' | 0 | ' | 2,827 | ' |
Accounts receivable, net | 164,906 | ' | 164,906 | ' | 154,342 | ' |
Prepaid and other current assets | 139,978 | ' | 139,978 | ' | 132,002 | ' |
Fixed assets, net | 549,233 | ' | 549,233 | ' | 564,442 | ' |
Goodwill | 207,541 | ' | 207,541 | ' | 208,795 | ' |
Intangible assets, net | 99,926 | ' | 99,926 | ' | 107,108 | ' |
Other non-current assets | 32,143 | ' | 32,143 | ' | 16,327 | ' |
LIABILITIES: | ' | ' | ' | ' | ' | ' |
Accounts payable | 126,059 | ' | 126,059 | ' | 125,896 | ' |
Receipts in advance and deferred revenue | 102,104 | ' | 102,104 | ' | 113,328 | ' |
Net revenue | 400,151 | 338,904 | 765,466 | 646,500 | ' | ' |
Net income /(loss) | -50,533 | 53,243 | -106,575 | 111,408 | ' | ' |
Cash flows: | ' | ' | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | -30,341 | 151,726 | ' | ' |
Net cash used in investing activities | ' | ' | 24,854 | -295,159 | ' | ' |
Net cash provided by /(used in) financing activities | ' | ' | -226,994 | 68,650 | ' | ' |
Consolidated VIEs [Member] | ' | ' | ' | ' | ' | ' |
ASSETS: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 64,918 | ' | 64,918 | ' | 112,316 | ' |
Short-term investments | 0 | ' | 0 | ' | 2,460 | ' |
Accounts receivable, net | 91,350 | ' | 91,350 | ' | 95,595 | ' |
Prepaid and other current assets | 36,884 | ' | 36,884 | ' | 41,838 | ' |
Intercompany receivables due from the Company's subsidiaries | 116,960 | ' | 116,960 | ' | 223,877 | ' |
Total current assets | 310,112 | ' | 310,112 | ' | 476,086 | ' |
Fixed assets, net | 10,351 | ' | 10,351 | ' | 8,190 | ' |
Goodwill | 138,243 | ' | 138,243 | ' | 139,478 | ' |
Intangible assets, net | 37,203 | ' | 37,203 | ' | 35,135 | ' |
Other non-current assets | 68,719 | ' | 68,719 | ' | 61,550 | ' |
Total assets | 564,628 | ' | 564,628 | ' | 720,439 | ' |
LIABILITIES: | ' | ' | ' | ' | ' | ' |
Accounts payable | 4,762 | ' | 4,762 | ' | 16,167 | ' |
Accrued and other short-term liabilities | 107,071 | ' | 107,071 | ' | 343,834 | ' |
Receipts in advance and deferred revenue | 43,050 | ' | 43,050 | ' | 60,140 | ' |
Intercompany payables due to the Company's subsidiaries | 217,889 | ' | 217,889 | ' | 12,059 | ' |
Total current liabilities | 372,772 | ' | 372,772 | ' | 432,200 | ' |
Other long-term liabilities | 6,158 | ' | 6,158 | ' | 9,560 | ' |
Total liabilities | 378,930 | ' | 378,930 | ' | 441,760 | ' |
Net revenue | 254,129 | 254,165 | 505,249 | 500,586 | ' | ' |
Net income /(loss) | -43,785 | 9,090 | -88,459 | 19,872 | ' | ' |
Sohu's VIEs [Member] | ' | ' | ' | ' | ' | ' |
Cash flows: | ' | ' | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 15,935 | 2,795 | ' | ' |
Net cash used in investing activities | ' | ' | -979 | -991 | ' | ' |
Net cash provided by /(used in) financing activities | ' | ' | 0 | 0 | ' | ' |
Changyou's VIEs [Member] | ' | ' | ' | ' | ' | ' |
Cash flows: | ' | ' | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 23,802 | 28,842 | ' | ' |
Net cash used in investing activities | ' | ' | -84,578 | -55,869 | ' | ' |
Net cash provided by /(used in) financing activities | ' | ' | ($793) | $0 | ' | ' |
VIEs_VIEs_Consolidated_within_2
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect, Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Sogou Technology [Member] | Shareholders of Sogou Information [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Powers of attorney term | '10 years |
Sogou Technology [Member] | Sogou Information [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Exclusive technology consulting and service agreement term | '10 years |
Business cooperation agreement term | '10 years |
Sogou Technology [Member] | Sogou Information [Member] | Shareholders of Sogou Information [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Business operation agreement term | '10 years |
Sohu Era [Member] | Shareholders of Yi He Jia Xun [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Powers of attorney term | '10 years |
Sohu Era [Member] | Yi He Jia Xun [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Exclusive technology consulting and service agreement term | '10 years |
Sohu Era [Member] | Yi He Jia Xun [Member] | Shareholders of Yi He Jia Xun [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Business operation agreement term | '10 years |
Sohu Era [Member] | Sohu Internet [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Exclusive technology consulting and service agreement term | '2 years |
Sohu Era [Member] | GoodFeel [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Exclusive technology consulting and service agreement term | '2 years |
AmazGame [Member] | Shareholders of Gamease [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Powers of attorney term | '10 years |
AmazGame [Member] | Gamease [Member] | Shareholders of Gamease [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Business operation agreement term | '10 years |
Gamespace [Member] | Shareholders of Guanyou Gamespace [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Powers of attorney term | '10 years |
Gamespace [Member] | Guanyou Gamespace [Member] | Shareholders of Guanyou Gamespace [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Business operation agreement term | '10 years |
7Road Technology [Member] | Shenzhen 7Road [Member] | Gamease [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Business operation agreement term | '10 years |
Equity interest purchase right agreement term | '10 years |
VIEs_VIEs_Not_Consolidated_wit
VIEs (VIEs Not Consolidated within Sohu Group, Narrative) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
VIEs Not Consolidated [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Purchase price | 1.6 |
VIEs Not Consolidated within Sohu Group, One [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Percentage of acquired equity interest | 25.00% |
VIEs Not Consolidated within Sohu Group, Two [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Percentage of acquired equity interest | 15.00% |
Sohucom_Inc_Shareholders_Equit2
Sohu.com Inc. Shareholders' Equity (Treasury Stock) (Details) (Sohu [Member], Common Stock [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Sohu [Member] | Common Stock [Member] | ' | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Shares repurchased | 0 | 0 | 0 | 0 |
Sohucom_Inc_Shareholders_Equit3
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jan. 24, 2010 | |
Sohu 2000 Stock Incentive Plan [Member] | Sohu 2000 Stock Incentive Plan [Member] | Sohu 2000 Stock Incentive Plan [Member] | Sohu 2000 Stock Incentive Plan [Member] | Sohu 2000 Stock Incentive Plan [Member] | Sohu 2000 Stock Incentive Plan [Member] | |||||
Common Stock [Member] | Common Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | ' |
Awards vesting period | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' |
Maximum term of share rights granted under share incentive plan | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Plan expiration date | ' | ' | ' | ' | ' | ' | 24-Jan-10 | ' | ' | ' |
Accumulated number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,128,724 |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | $0 | $500,000 | $1,400,000 | $1,200,000 | ' | ' |
Sohucom_Inc_Shareholders_Equit4
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Share Option Activity) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Closing stock price | $57.69 | ' | $57.69 | ' | ||
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | ||
Sohu 2000 Stock Incentive Plan [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Share-based compensation expense | 0 | 500,000 | 1,400,000 | 1,200,000 | ||
Sohu 2000 Stock Incentive Plan [Member] | Stock Options [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Number of Shares, Outstanding, Beginning Balance | ' | ' | 147,000 | ' | ||
Number of Shares, Exercised | ' | ' | -23,000 | ' | ||
Number of Shares, Forfeited or expired | ' | ' | 0 | ' | ||
Number of Shares, Outstanding, Ending Balance | 124,000 | ' | 124,000 | ' | ||
Number of Shares, Vested, Ending balance | 124,000 | ' | 124,000 | ' | ||
Number of Shares, Exercisable, Ending balance | 124,000 | ' | 124,000 | ' | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | ' | ' | $18.87 | ' | ||
Weighted Average Exercise Price, Exercised | ' | ' | $18.62 | ' | ||
Weighted Average Exercise Price, Outstanding, Ending balance | $18.92 | ' | $18.92 | ' | ||
Weighted Average Exercise Price, Vested, Ending Balance | $18.92 | ' | $18.92 | ' | ||
Weighted Average Exercise Price, Exercisable, Ending Balance | $18.92 | ' | $18.92 | ' | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | ' | ' | 1.39 | ' | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 0.89 | ' | 0.89 | ' | ||
Weighted Average Remaining Contractual Life (Years), Vested, Ending Balance | 0.89 | ' | 0.89 | ' | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending Balance | 0.89 | ' | 0.89 | ' | ||
Aggregate Intrinsic Value, Outstanding, Beginning balance | ' | ' | 7,958,000 | [1] | ' | |
Aggregate Intrinsic Value, Outstanding, Ending balance | 4,814,000 | [1] | ' | 4,814,000 | [1] | ' |
Aggregate Intrinsic Value, Vested, Ending Balance | 4,814,000 | [1] | ' | 4,814,000 | [1] | ' |
Aggregate Intrinsic Value, Exercisable, Ending Balance | 4,814,000 | [1] | ' | 4,814,000 | [1] | ' |
Total intrinsic value of share options exercised in period | ' | ' | 1,300,000 | ' | ||
Number of options granted in period | ' | ' | 0 | ' | ||
Share-based compensation expense | 0 | 0 | 0 | 0 | ||
Total cash received from the exercise of share options | $100,000 | $300,000 | $400,000 | $800,000 | ||
[1] | The aggregate intrinsic value in the preceding table represents the difference between Sohu's closing stock price of $57.69 on June 30, 2014 and the exercise price of share options. The total intrinsic value of share options exercised for the six months ended June 30, 2014 was $1.3 million. |
Sohucom_Inc_Shareholders_Equit5
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Restricted Share Unit Activity) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 |
Sohu 2000 Stock Incentive Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 0 | 500,000 | 1,400,000 | 1,200,000 |
Sohu 2000 Stock Incentive Plan [Member] | Restricted Share Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of Units, Unvested, Beginning balance | ' | ' | 123 | ' |
Number of Units, Granted | ' | ' | 0 | ' |
Number of Units, Vested | ' | ' | -121 | ' |
Number of Units, Forfeited | ' | ' | -2 | ' |
Number of Units, Unvested, Ending balance | 0 | ' | 0 | ' |
Number of Units, Expected to vest thereafter | 0 | ' | 0 | ' |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | ' | ' | $61.27 | ' |
Weighted-Average Grant-Date Fair Value, Vested | ' | ' | $61.27 | ' |
Weighted-Average Grant-Date Fair Value, Forfeited | ' | ' | $61.27 | ' |
Share-based compensation expense | 0 | 500,000 | 1,400,000 | 1,200,000 |
Unrecognized compensation expense | 0 | ' | 0 | ' |
Total fair value of restricted share units vested | $0 | $0 | $9,300,000 | $6,200,000 |
Sohucom_Inc_Shareholders_Equit6
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jul. 02, 2010 | |
Sohu 2010 Stock Incentive Plan [Member] | Sohu 2010 Stock Incentive Plan [Member] | Sohu 2010 Stock Incentive Plan [Member] | Sohu 2010 Stock Incentive Plan [Member] | Sohu 2010 Stock Incentive Plan [Member] | Sohu 2010 Stock Incentive Plan [Member] | Sohu 2010 Stock Incentive Plan [Member] | |||||
Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Maximum term of share rights granted under share incentive plan | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Plan expiration date | ' | ' | ' | ' | 1-Jul-20 | ' | ' | ' | ' | ' | ' |
Shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,298,513 | ' |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | ' | $1,300,000 | $200,000 | $2,500,000 | $400,000 | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | ' | 6,300,000 | ' | 6,300,000 | ' | ' | ' |
Unrecognized compensation expense, weighted average period for recognition | ' | ' | ' | ' | ' | ' | ' | '1 year 1 month 28 days | ' | ' | ' |
Total fair value of restricted share units vested | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | ' | ' |
Sohucom_Inc_Shareholders_Equit7
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Restricted Share Unit Activity) (Details) (Sohu 2010 Stock Incentive Plan [Member], Restricted Share Units [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Sohu 2010 Stock Incentive Plan [Member] | Restricted Share Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Units, Unvested, Beginning balance | 123 |
Number of Units, Granted | 36 |
Number of Units, Vested | 0 |
Number of Units, Forfeited | -1 |
Number of Units, Unvested, Ending balance | 158 |
Number of Units, Expected to vest thereafter | 118 |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $84.82 |
Weighted-Average Grant-Date Fair Value, Granted | $67.57 |
Weighted-Average Grant-Date Fair Value, Forfeited | $70.88 |
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | $80.91 |
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter | $54.46 |
Sohucom_Inc_Shareholders_Equit8
Sohu.com Inc. Shareholders' Equity (Changyou's 2008 Stock Incentive Plan, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2009 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2014 | |
Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | Changyou [Member] | |||||
Ordinary shares [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | Changyou 2008 Share Incentive Plan [Member] | |||||||||
Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | ||||||||||||||
Restricted Share Units [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares reserved for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Shares reserved for future issuance as a result of share split | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' |
Stock split, conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' |
Awards vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Maximum term of share rights granted under share incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' |
Number of shares or units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | 4,983,552 |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | $459,000 | $363,000 | $739,000 | $572,000 | ' | $500,000 | $400,000 | $700,000 | $600,000 | ' | ' | ' | ' |
Sohucom_Inc_Shareholders_Equit9
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted before Changyou's Initial Public Offering, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 |
Changyou [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 459,000 | 363,000 | 739,000 | 572,000 |
Changyou [Member] | Changyou's Share-based Awards Granted before IPO [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | $0 | ' |
Recovered_Sheet1
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's Initial Public Offering, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 |
Changyou [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 459,000 | 363,000 | 739,000 | 572,000 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Restricted Share Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Awards vesting period | ' | ' | '4 years | ' |
Share-based compensation expense | 500,000 | 400,000 | 700,000 | 900,000 |
Unrecognized compensation expense | 2,700,000 | ' | 2,700,000 | ' |
Unrecognized compensation expense, weighted average period for recognition | ' | ' | '1 year 2 months 5 days | ' |
Total fair value of restricted share units vested | $10,000 | $4,400,000 | $440,000 | $4,700,000 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Restricted Share Units [Member] | Ordinary shares [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares or units granted | 1,787,552 | ' | 1,787,552 | ' |
Recovered_Sheet2
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's Initial Public Offering, Restricted Share Unit Activity) (Details) (Changyou [Member], Changyou's Share-based Awards Granted after IPO [Member], Restricted Share Units [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Restricted Share Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Units, Unvested, Beginning balance | 218 |
Number of Units, Granted | 160 |
Number of Units, Vested | -29 |
Number of Units, Forfeited | -5 |
Number of Units, Unvested, Ending balance | 344 |
Number of Units, Expected to vest thereafter | 331 |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $14.46 |
Weighted-Average Grant-Date Fair Value, Granted | $13.80 |
Weighted-Average Grant-Date Fair Value, Vested | $16.32 |
Weighted-Average Grant-Date Fair Value, Forfeited | $17.19 |
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | $13.96 |
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter | $13.97 |
Recovered_Sheet3
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan) (Details) (Changyou [Member], Changyou 2014 Share Incentive Plan [Member], Class A Ordinary Shares [Member]) | Jun. 25, 2014 |
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares reserved for future issuance | 2,000,000 |
Recovered_Sheet4
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 18, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||||
Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | |||||||||
Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | Sogou 2010 Share Incentive Plan [Member] | |||||||||||||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | ||||||||||||||
Vesting upon Completion of Event [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | |||||||||||||||||||
Vesting upon Service Period and Achievement of Performance Targets [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | Vesting upon Completion of Event [Member] | Vesting upon Completion of Event [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ||||
Maximum term of share rights granted under share incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Plan expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 19-Oct-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,162,750 | 22,932,750 | 8,270,000 | 8,270,000 | 3,960,000 | 3,960,000 | ||||
Installments of share options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'four equal installments | ' | 'four or five equal installments | ' | 'four equal installments | ||||
Number of options for which performance targets had been set | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,748,075 | ' | ' | ' | ' | ||||
Number of options vested and exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,656,500 | ' | ' | ' | ' | ||||
Accumulated number of share options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,208,455 | ' | ' | ' | ' | ||||
Period of options after which remaining options will cease to vest if there has not been certain event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ||||
Starting date of waiting period for certain events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ||||
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | $20,603,000 | [1] | $154,000 | [1] | $22,935,000 | [1] | $170,000 | [1] | ' | $539,000 | $132,000 | $922,000 | $148,000 | ' | ' | ' | ' | $0 | $0 | $0 | $0 |
Unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000 | ' | $5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Unrecognized compensation expense, weighted average period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month 2 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11 - Sohu.com Inc. Shareholders' Equity. |
Recovered_Sheet5
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) (Sogou [Member], Sogou 2010 Share Incentive Plan [Member], Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
years | |
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 17,953,000 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | -5,174,000 |
Number of Shares, Forfeited or expired | -10,000 |
Number of Shares, Outstanding, Ending Balance | 12,769,000 |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | 528,000 |
Number of Shares, Exercisable, Ending balance | 448,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $0.25 |
Weighted Average Exercise Price, Exercised | $0.00 |
Weighted Average Exercise Price, Forfeited or expired | $0.00 |
Weighted Average Exercise Price, Outstanding, Ending balance | $0.35 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 8.61 |
Recovered_Sheet6
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) (Sogou [Member], Sogou 2010 Share Incentive Plan [Member], Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted average expected option life | '10 years |
Dividend yield | 0.00% |
Fair value | $0.67 |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Average risk-free interest rate | 2.10% |
Exercise multiple | 2 |
Expected forfeiture rate (post-vesting) | 1.30% |
Volatility rate | 47.00% |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Average risk-free interest rate | 2.87% |
Exercise multiple | 3 |
Expected forfeiture rate (post-vesting) | 6.00% |
Volatility rate | 49.00% |
Recovered_Sheet7
Sohu.com Inc. Shareholders' Equity (Sogou's Share-based Awards to Sohu Management, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 14, 2011 | Mar. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||||
Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | |||||||||
Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Sohu Management Sogou Share Option Arrangement [Member] | |||||||||||||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | |||||||||||||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | |||||||||||||||||||
Vesting upon Service Period and Achievement of Performance Targets [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ||||
Fixed exercise price of ordinary share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.63 | ' | ' | ' | ' | ||||
Sogou's ordinary shares previously held by Sohu | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,800,000 | ' | ' | ' | ' | ||||
Sogou's newly-issued shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ||||
Sogou's newly-issued shares, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.63 | ' | ' | ' | ' | ' | ||||
Sogou's newly-issued shares, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ||||
Number of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,776,000 | 8,376,000 | 2,400,000 | 2,400,000 | ||||
Installments of share options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'four equal installments | ' | 'five equal installments | ||||
Number of options for which performance targets had been set | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,585,750 | ' | ' | ||||
Number of options vested and exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,585,750 | ' | ' | ||||
Accumulated number of share options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,363,000 | ' | ' | ||||
Share-based compensation expense | 26,566,000 | 1,239,000 | 31,806,000 | 2,325,000 | 20,603,000 | [1] | 154,000 | [1] | 22,935,000 | [1] | 170,000 | [1] | 1,300,000 | 22,000 | 1,300,000 | 22,000 | ' | ' | ' | ' | 0 | 0 |
Unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11 - Sohu.com Inc. Shareholders' Equity. |
Recovered_Sheet8
Sohu.com Inc. Shareholders' Equity (Sogou's Share-based Awards to Sohu Management, Share Option Activity) (Details) (Sogou [Member], Sohu Management Sogou Share Option Arrangement [Member], Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
years | |
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 3,880,000 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | -1,258,000 |
Number of Shares, Forfeited or expired | 0 |
Number of Shares, Outstanding, Ending Balance | 2,622,000 |
Number of Shares, Vested, Ending balance | 223,000 |
Number of Shares, Exercisable, Ending balance | 223,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $0.63 |
Weighted Average Exercise Price, Exercised | $0.63 |
Weighted Average Exercise Price, Outstanding, Ending balance | $0.63 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 8.54 |
Recovered_Sheet9
Sohu.com Inc. Shareholders' Equity (Sogou's Share-based Awards to Sohu Management, Share Option Assumptions) (Details) (Sogou [Member], Sohu Management Sogou Share Option Arrangement [Member], Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted average expected option life | '10 years |
Dividend yield | 0.00% |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Average risk-free interest rate | 2.10% |
Exercise multiple | 2 |
Expected forfeiture rate (post-vesting) | 0.00% |
Volatility rate | 47.00% |
Fair value | 0.27 |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Average risk-free interest rate | 2.87% |
Exercise multiple | 3 |
Expected forfeiture rate (post-vesting) | 8.00% |
Volatility rate | 48.00% |
Fair value | 0.38 |
Recovered_Sheet10
Sohu.com Inc. Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification) (Details) (Sogou [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Incremental compensation expense | $0 |
Ordinary shares [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Accumulated number of share options early exercised | 15,932,500 |
Sogou 2010 Share Incentive Plan [Member] | Ordinary shares [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Accumulated number of share options early exercised | 15,320,000 |
Sohu Management Sogou Share Option Arrangement [Member] | Ordinary shares [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Accumulated number of share options early exercised | 612,500 |
Recovered_Sheet11
Sohu.com Inc. Shareholders' Equity (Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 31-May-14 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||||
Tencent [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | |||||||||
Ordinary shares [Member] | Tencent [Member] | Tencent [Member] | Tencent [Member] | |||||||||||||
Tencent Share-based Awards Related to Soso [Member] | Tencent Share-based Awards Related to Soso [Member] | Tencent Share-based Awards Related to Soso [Member] | ||||||||||||||
Restricted Share Units [Member] | Restricted Share Units [Member] | Ordinary shares [Member] | ||||||||||||||
Restricted Share Units [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 670,720 | ||||
Stock split, conversion ratio | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ||||
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | ' | $20,603,000 | [1] | $154,000 | [1] | $22,935,000 | [1] | $170,000 | [1] | $1,800,000 | $3,700,000 | ' |
Unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,500,000 | $4,500,000 | ' | ||||
Unrecognized compensation expense, weighted average period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 10 months 24 days | ' | ||||
[1] | Includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of the Sogou Class A Ordinary Shares that the Group repurchased. See Note 11 - Sohu.com Inc. Shareholders' Equity. |
Recovered_Sheet12
Sohu.com Inc. Shareholders' Equity (Sogou Share Repurchase Transaction) (Details) (Sogou [Member], Class A Ordinary Shares [Member], USD $) | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 |
Sogou [Member] | Class A Ordinary Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares repurchased | 4,200,000 |
Aggregate purchase price | $41.60 |
Additional share-based compensation expense | $17 |
Recovered_Sheet13
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 04, 2012 | Jun. 30, 2014 | |
Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | Sohu Video [Member] | |||||
Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | Video 2011 Share Incentive Plan [Member] | |||||||||
Stock Options [Member] | Stock Options [Member] | Ordinary shares [Member] | Ordinary shares [Member] | ||||||||||
Stock Options [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares reserved for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' |
Maximum term of share incentive award granted under share incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Plan expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 3-Jan-21 | ' | ' | ' | ' |
Number of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,368,200 |
Number of options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,972,800 |
Share-based compensation expense | $26,566,000 | $1,239,000 | $31,806,000 | $2,325,000 | $4,227,000 | $0 | $4,227,000 | $0 | ' | $4,200,000 | $4,200,000 | ' | ' |
Recovered_Sheet14
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Share Option Assumptions) (Details) (Sohu Video [Member], Video 2011 Share Incentive Plan [Member], Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Average risk-free interest rate | 3.00% |
Exercise multiple | 2.8 |
Expected forfeiture rate (post-vesting) | 10.00% |
Weighted average expected option life | '7 years 6 months |
Volatility rate | 61.00% |
Dividend yield | 0.00% |
Fair value | $0.85 |
Business_Transactions_Sogou_Tr
Business Transactions (Sogou Transactions, Sogou-Tencent Transactions) (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 16, 2013 | Sep. 17, 2013 | Jun. 29, 2012 | Oct. 22, 2010 | Sep. 17, 2013 | Mar. 24, 2014 | Oct. 22, 2010 | Sep. 17, 2013 | Oct. 22, 2010 | Sep. 17, 2013 | Jun. 30, 2014 | Dec. 02, 2013 |
Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou [Member] | Sogou Information [Member] | |
Tencent [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Class A Ordinary Shares [Member] | Tencent [Member] | |
Alibaba [Member] | Alibaba [Member] | China Web [Member] | China Web [Member] | China Web [Member] | Photon [Member] | Photon [Member] | Sohu Search [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Newly-issued Series A Preferred Shares, shares | ' | ' | ' | 24,000,000 | ' | ' | 14,400,000 | ' | 38,400,000 | ' | ' | ' |
Newly-issued Series A Preferred Shares, value | ' | ' | ' | $15 | ' | ' | $9 | ' | $24 | ' | ' | ' |
Purchase of Series A Preferred Shares, shares | ' | ' | 24,000,000 | ' | ' | 14,400,000 | ' | ' | ' | ' | ' | ' |
Purchase of Series A Preferred Shares, aggregate purchase price | ' | ' | 25.8 | ' | ' | 47.3 | ' | ' | ' | ' | ' | ' |
Cash proceeds from Tencent | 448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 |
Special dividend paid to Series A Preferred Shareholders by Sogou | ' | 301 | ' | ' | 97 | ' | ' | 43 | ' | 161 | ' | ' |
Ownership percentage held by Tencent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% |
Shares repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41.60 | ' |
Business_Transactions_Sogou_Tr1
Business Transactions (Sogou Transactions, Sohu's Shareholding in Sogou) (Details) (Sogou [Member], USD $) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 16, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Ordinary Shares and Preferred Shares [Member] | Sohu [Member] | Sohu [Member] | Sohu [Member] | Photon [Member] | Photon [Member] | Photon [Member] | Tencent [Member] | Tencent [Member] | Tencent [Member] | Various Employees of Sogou and Sohu [Member] | ||
Class A Ordinary Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Series A Preferred Shares [Member] | Class A Ordinary Shares [Member] | Series B Preferred Shares [Member] | Non-voting Class B Ordinary Shares [Member] | Class A Ordinary Shares [Member] | |||
Repurchase Option [Member] | Repurchase Option [Member] | Repurchase Option [Member] | ||||||||||
Shareholding in Independently Listed Subsidiary [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares, outstanding | ' | 357,389,288 | 132,850,250 | 24,000,000 | ' | 38,400,000 | ' | ' | 6,757,875 | 65,431,579 | 79,368,421 | 10,581,163 |
Shares to be purchased by Sohu management and key employees | ' | ' | 5,650,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Agreement of Series A Preferred Shares, shares | ' | ' | ' | ' | 24,000,000 | ' | 6,400,000 | 6,400,000 | ' | ' | ' | ' |
Impact on Sohu's basic net income per share | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Transactions_Sogou_Tr2
Business Transactions (Sogou Transactions, Terms of Sogou Preferred Shares) (Details) (Sogou [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Series A Preferred Shares [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Dividend rate per annum per Preferred Share | $0.04 |
Times over original sales price preferred shareholders entitled to receive in event of liquidation | 1.3 |
Preferred share conversion price | $0.63 |
Series B Preferred Shares [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Dividend rate per annum per Preferred Share | $0.41 |
Liquidation Preference Price | $6.85 |
Preferred share conversion price | $7.27 |
Business_Transactions_Changyou
Business Transactions (Changyou Share Repurchase Transactions) (Details) (Changyou [Member], Changyou Share Repurchase Program Authorized in 2013 [Member], USD $) | 0 Months Ended | 6 Months Ended |
In Millions, except Share data, unless otherwise specified | Jul. 27, 2013 | Jun. 30, 2014 |
ADS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ' | ' |
Share repurchase program, authorized amount | $100 | ' |
Share repurchase program, period in force | '2 years | ' |
Share repurchase program, shares repurchased | ' | 0 |
Mezzanine_Equity_Details
Mezzanine Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Accretion charges | $0 | $7,112,000 | $0 | $17,780,000 |
Mezzanine equity | $0 | ' | $0 | ' |
Changyou [Member] | 7Road [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Put option expiration year | ' | ' | '2014 | ' |
Noncontrolling_Interest_Narrat
Noncontrolling Interest (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Noncontrolling interest in consolidated balance sheets | $414,025 | ' | $414,025 | ' | $510,015 |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | -9,443 | 24,505 | -14,378 | 47,571 | ' |
Changyou [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Noncontrolling interest in consolidated balance sheets | 298,415 | ' | 298,415 | ' | 307,898 |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 32.00% | ' | 32.00% | ' | 32.00% |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $222 | $24,656 | ($6,408) | $49,890 | ' |
Percentage of net income attributable to noncontrolling interest recognized in consolidated statements of comprehensive income | 32.00% | 33.00% | ' | ' | ' |
Noncontrolling_Interest_Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Balance Sheets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Noncontrolling Interest [Line Items] | ' | ' |
Noncontrolling interest in consolidated balance sheets | $414,025 | $510,015 |
Changyou [Member] | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Noncontrolling interest in consolidated balance sheets | 298,415 | 307,898 |
Sogou [Member] | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Noncontrolling interest in consolidated balance sheets | 112,661 | 199,059 |
Others [Member] | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Noncontrolling interest in consolidated balance sheets | $2,949 | $3,058 |
Noncontrolling_Interest_Noncon1
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | ($9,443) | $24,505 | ($14,378) | $47,571 |
Changyou [Member] | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 222 | 24,656 | -6,408 | 49,890 |
Sogou [Member] | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | -9,853 | -37 | -8,735 | -1,966 |
Others [Member] | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $188 | ($114) | $765 | ($353) |
Net_Income_Loss_per_Share_Narr
Net Income /(Loss) per Share (Narrative) (Details) (USD $) | Mar. 24, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, except Share data, unless otherwise specified | Sogou [Member] | Potential common shares issuable upon exercise or settlement of share-based awards [Member] | Potential common shares issuable upon exercise or settlement of share-based awards [Member] |
China Web [Member] | |||
Series A Preferred Shares [Member] | |||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive potential common shares | ' | 94,000 | 121,000 |
Purchase of Series A Preferred Shares, shares | 14,400,000 | ' | ' |
Purchase of Series A Preferred Shares, aggregate purchase price | $47.30 | ' | ' |
Deemed dividend | $27.70 | ' | ' |
Net_Income_Loss_per_Share_Calc
Net Income /(Loss) per Share (Calculation of Sohu Group's Basic and Diluted Net Income /(Loss) per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income /(loss) attributable to Sohu.com Inc., basic (after subtracting the deemed dividend to noncontrolling Sogou Series A Preferred shareholders) | ($41,090) | $21,626 | ($119,944) | $46,057 |
Effect of dilutive securities: | ' | ' | ' | ' |
Net income /(loss) attributable to Sohu.com Inc., diluted | -44,509 | 21,504 | -122,114 | 44,492 |
Denominator: | ' | ' | ' | ' |
Weighted average basic common shares outstanding | 38,475 | 38,259 | 38,443 | 38,214 |
Effect of dilutive securities: | ' | ' | ' | ' |
Share options and restricted share units | 0 | 233 | 0 | 247 |
Weighted average diluted common shares outstanding | 38,475 | 38,492 | 38,443 | 38,461 |
Basic net income /(loss) per share attributable to Sohu.com Inc. | ($1.07) | $0.57 | ($3.12) | $1.21 |
Diluted net income /(loss) per share attributable to Sohu.com Inc. | ($1.16) | $0.56 | ($3.18) | $1.16 |
Changyou [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Incremental dilution | -3 | -101 | 0 | -426 |
Sogou [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Incremental dilution | ($3,416) | ($21) | ($2,170) | ($1,139) |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (Subsequent Event [Member], MoboTap [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jul. 16, 2014 |
persons | |
Subsequent Event [Line Items] | ' |
Number of directors can be designated by shareholders | 5 |
Changyou [Member] | ' |
Subsequent Event [Line Items] | ' |
Percentage of acquired equity interest | 51.00% |
Cash consideration | 91 |
Number of directors can be designated by shareholders | 3 |
Percentage of equity interests, noncontrolling shareholders have right to put to controlling shareholder under specific conditions | 15.00% |
Aggregate price of equity interests, noncontrolling shareholders have right to put to controlling shareholder under specific conditions | 53 |
Changyou [Member] | Zero Coupon Convertible Bond [Member] | ' |
Subsequent Event [Line Items] | ' |
Principal amount of zero-coupon convertible bond | 30 |
Term of zero-coupon convertible bond | '5 years |
Percentage of acquired equity interest after converting zero-coupon convertible bond into shares | 60.00% |