Press Releases

Goulston & Storrs Client’s Search Subsidiary Sogou Awarded Best Domestic M&A Deal in FinanceAsia Achievement Awards 2013

December 11, 2013Press Releases

Goulston & Storrs congratulates its client, and its search subsidiary Sogou, on being awarded Best Domestic M&A Deal in FinanceAsia’s Achievement Awards for 2013. Our client was recognized for signing and completing a strategic cooperation with and investment from Tencent totaling $448 million.

According to FinanceAsia, the deal “was cleverly structured in a way that enabled the [companies] to strike a deal without requiring China’s Ministry of Commerce’s (Mofcom’s) approval.” The publication continued, “The internet sector in China is rife with deal failures, due to Mofcom’s reluctance to consider any applications for companies with variable interest entity structures for fear of lending legitimacy to them. Tencent and Sogou got around this by ensuring that the entity did not meet the revenue thresholds that were required for Mofcom approval. The deal marks a trend toward domestic consolidation, as slowing growth in China forces companies to merge to be more profitable.”

The FinanceAsia Achievement Awards recognize annually excellence in finance in Asia. Click here for more information on the 2013 awards and Sogou’s recognition.

Goulston & Storrs’ China practice, including director Timothy B. Bancroft and counsel Danhai Mu who work with and Sogou, works with companies in the Internet, online games, technology, finance, life sciences, real estate, hospitality and retail industries. For more than 14 years, Goulston & Storrs has been representing PRC companies that are publicly traded on the US securities markets, or that are privately held and have US investors or strategic partners. The firm also represents US companies looking to China for investment and to access labor, supply or consumer markets. The lawyers in the China practice assist clients in many areas, including: venture capital and private equity investments; IPOs; US securities law compliance; mergers and acquisitions; joint ventures and strategic partnerships; licensing agreements; intellectual property; technology transfers; and tax structuring.