Conyers provided Cayman law advice to Changyou.com Limited (“Changyou”) on its group reorganization involving a US$580 million privatisation and de-listing from NASDAQ, effected by a short form merger with Changyou Merger Co. Limited. As a result, Changyou has become a private company wholly owned by Sohu.com Limited.
Changyou is a leading developer and operator of online games in China. It owns and operates an online game information website in China which provides game-related news, videos, gaming strategies and forums. Changyou was listed on NASDAQ in April 2009 (NASDAQ: CYOU). In December 2011, it completed the acquisition of the 17173 Business, which operates a leading game information portal in China from Sohu.
Consultant David Lamb, Counsel Angie Chu and Associate Michael Yu of Conyers’ Hong Kong office advised on the matter working alongside Skadden, Arps, Slate, Meagher & Flom LLP and Goulston & Storrs.
David Lamb commented: “Short form mergers are attractive because they reduce the price risk associated with these deals since activist shareholders cannot exercise the appraisal rights which may apply in a long form merger.”