Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Entity Registrant Name | SOHU.COM LIMITED |
Entity Central Index Key | 0001734107 |
Document Period End Date | Dec. 31, 2023 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 33,048,684 |
Entity Shell Company | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Document Transition Report | false |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Document Shell Company Report | false |
Entity File Number | 001-38511 |
Entity Incorporation, State or Country Code | E9 |
Document Registration Statement | false |
Entity Address, Address Line One | Level 18, Sohu.com Media Plaza |
Entity Address, Address Line Two | Block 3, No. 2 Kexueyuan South Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100190 |
Entity Address, Country | CN |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Joanna Lv |
Entity Address, Address Line One | Level 18, Sohu.com Media Plaza |
Entity Address, Address Line Two | Block 3, No. 2 Kexueyuan South Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100190 |
Entity Address, Country | CN |
Country Region | 86 |
City Area Code | 10 |
Local Phone Number | 6272 6666 |
Contact Personnel Email Address | IR@sohu-inc.com |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing one ordinary share, par value US$0.001 per share |
Trading Symbol | SOHU |
Security Exchange Name | NASDAQ |
Common Stock [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary shares |
No Trading Symbol Flag | true |
Auditor Information
Auditor Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Beijing, the People’s Republic of China |
Auditor Firm ID | 1424 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Current assets: | ||||
Cash and cash equivalents | $ 362,504 | $ 697,821 | ||
Restricted cash | 3,184 | 3,641 | ||
Short-term investments | 597,770 | 473,624 | ||
Accounts receivable, net (including $1,655 and $1,506, respectively, due from related parties as of December 31, 2022 and 2023) | 71,618 | 67,541 | ||
Prepaid and other current assets (including $34,123 and $33,665, respectively, due from a related party as of December 31, 2022 and 2023) | 81,971 | 83,093 | ||
Total current assets | 1,117,047 | 1,325,720 | ||
Fixed assets, net | 269,058 | [1] | 288,226 | [2] |
Goodwill | 47,163 | 47,415 | ||
Long-term investments, net | 45,198 | 26,012 | ||
Intangible assets, net | 2,226 | 5,394 | ||
Long-term time deposits | 388,613 | 265,802 | ||
Other assets | 12,793 | 19,207 | ||
Total assets | 1,882,098 | 1,977,776 | ||
Current liabilities: | ||||
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $10,909 and $7,916, respectively, as of December 31, 2022 and 2023) | 44,609 | 56,449 | ||
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $37,946 and $28,525, respectively, as of December 31, 2022 and 2023) | 103,779 | 126,461 | ||
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $40,948 and $43,958, respectively, as of December 31, 2022 and 2023) | 50,829 | 48,080 | ||
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $6,229 and $4,534, respectively, as of December 31, 2022 and 2023) | 50,330 | 60,754 | ||
Tax payables (including tax payables of consolidated VIEs without recourse to the Company of $1,183 and $1,067, respectively, as of December 31, 2022 and 2023) | 11,363 | 10,612 | ||
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $15,102 and $13,883, respectively, as of December 31, 2022 and 2023, and due to a related party of $34,123 and $34,123, respectively, as of December 31, 2022 and 2023.) | 81,482 | 114,532 | ||
Total current liabilities | 342,392 | 416,888 | ||
Long-term other payables | 3,924 | 1,795 | ||
Long-term tax liabilities (including long-term tax liabilities of consolidated VIEs without recourse to the Company of $13,242 and $13,021, respectively, as of December 31, 2022 and 2023) | 212,859 | 200,229 | ||
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $549 and nil, respectively, as of December 31, 2022 and 2023) | 261,515 | 247,814 | ||
Other long-term liabilities (including other long-term liabilities of consolidated VIEs without recourse to the Company of nil and $33, respectively, as of December 31, 2022 and 2023) | 2,130 | 340 | ||
Total long-term liabilities | 480,428 | 450,178 | ||
Total liabilities | 822,820 | 867,066 | ||
Commitments and contingencies | ||||
Sohu.com Limited shareholders' equity: | ||||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 33,737 shares and 33,049 shares, respectively, issued and outstanding as of December 31, 2022 and 2023) | 34 | 34 | ||
Additional paid-in capital | 866,551 | 866,455 | ||
Treasury Stock: $0.001 par value per share (nil and 696 shares, respectively, as of December 31, 2022 and 2023) | (6,560) | 0 | ||
Accumulated other comprehensive loss | (46,480) | (32,837) | ||
Accumulated earnings | 245,411 | 275,790 | ||
Total Sohu.com Limited shareholders' equity | 1,058,956 | 1,109,442 | ||
Noncontrolling interest | 322 | 1,268 | ||
Total shareholders' equity | 1,059,278 | 1,110,710 | ||
Total liabilities and shareholders' equity | $ 1,882,098 | $ 1,977,776 | ||
[1]Total additions to fixed assets of Sohu and Changyou were $1.1 million and $1.2 million, respectively, for the year ended December 31, 2023.[2]Total additions to fixed assets of Sohu and Changyou were $4.6 million and $1.0 million, respectively, for the year ended December 31, 2022. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable due from a related party | $ 71,618,000 | $ 67,541,000 |
Prepaid and other current assets due from a related party | 33,665,000 | 34,123,000 |
Accounts payable | 44,609,000 | 56,449,000 |
Accrued liabilities | 103,779,000 | 126,461,000 |
Receipts in advance and deferred revenue | 50,829,000 | 48,080,000 |
Accrued salary and benefits | 50,330,000 | 60,754,000 |
Tax payables | 11,363,000 | 10,612,000 |
Other short-term liabilities | 81,482,000 | 114,532,000 |
Other short-term liabilities | 34,123,000 | 34,123,000 |
Long-term tax liabilities | 212,859,000 | 200,229,000 |
Deferred tax liabilities | 261,515,000 | 247,814,000 |
Other long-term liabilities | $ 2,130,000 | $ 340,000 |
Ordinary Share, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary Share, shares authorized (in shares) | 75,400,000 | 75,400,000 |
Ordinary Share, shares issued (in shares) | 33,049,000 | 33,737,000 |
Ordinary Share, shares outstanding (in shares) | 33,049,000 | 33,737,000 |
Treasury Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Treasury stock, shares (in shares) | 696,000 | 0 |
Related Party [Member] | ||
Accounts receivable due from a related party | $ 1,506,000 | $ 1,655,000 |
Other short-term liabilities | 34,123,000 | 34,123,000 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Accounts receivable due from a related party | 32,953,000 | 38,622,000 |
Accounts payable | 7,916,000 | 10,909,000 |
Accrued liabilities | 28,525,000 | 37,946,000 |
Receipts in advance and deferred revenue | 43,958,000 | 40,948,000 |
Accrued salary and benefits | 4,534,000 | 6,229,000 |
Tax payables | 1,067,000 | 1,183,000 |
Other short-term liabilities | 13,883,000 | 15,102,000 |
Long-term tax liabilities | 13,021,000 | 13,242,000 |
Deferred tax liabilities | 0 | 549,000 |
Other long-term liabilities | $ 33,000 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Revenues | $ 600,672 | $ 733,872 | $ 835,576 |
Cost of revenues: | |||
Cost of revenues | 145,757 | 191,573 | 204,671 |
Gross profit | 454,915 | 542,299 | 630,905 |
Operating expenses: | |||
Product development | 279,842 | 260,772 | 268,863 |
Sales and marketing | 213,449 | 225,480 | 182,690 |
General and administrative (including expenses generated from a related party of $35, nil and nil, respectively, for 2021, 2022 and 2023) | 48,934 | 56,920 | 81,880 |
Total operating expenses | 542,225 | 543,172 | 533,433 |
Operating profit/(loss) | (87,310) | (873) | 97,472 |
Other income, net | 35,746 | 17,643 | 29,416 |
Interest income | 45,222 | 17,311 | 15,641 |
Interest expense | 0 | 0 | (7,500) |
Exchange difference | 692 | 6,524 | (3,462) |
Income/(loss) before income tax expense | (5,650) | 40,605 | 131,567 |
Income tax expense | 60,420 | 57,946 | 62,296 |
Net income/(loss) from continuing operations | (66,070) | (17,341) | 69,271 |
Net income from discontinued operations, net of tax | 35,426 | 0 | 864,902 |
Net income/(loss) | (30,644) | (17,341) | 934,173 |
Less: Net income/(loss) from continuing operations attributable to the noncontrolling interest shareholders | (265) | 2 | (3) |
Less: Net income from discontinued operations attributable to the noncontrolling interest shareholders | 0 | 0 | 6,451 |
Net income/(loss) from continuing operations attributable to Sohu.com Limited | (65,805) | (17,343) | 69,274 |
Net income from discontinued operations attributable to Sohu.com Limited | 35,426 | 0 | 858,451 |
Net income/(loss) attributable to Sohu.com Limited | (30,379) | (17,343) | 927,725 |
Net income/(loss) | (30,644) | (17,341) | 934,173 |
Foreign currency translation adjustments | (13,643) | (83,982) | 23,474 |
Other comprehensive income/(loss) | (13,643) | (83,982) | 23,474 |
Comprehensive income/(loss) | (44,287) | (101,323) | 957,647 |
Less: Comprehensive income/(loss) attributable to noncontrolling interest shareholders | (265) | 2 | 7,966 |
Comprehensive income/(loss) attributable to Sohu.com Limited | $ (44,022) | $ (101,325) | $ 949,681 |
Basic net income/(loss) per share attributable to Sohu.com Limited | |||
Continuing operations | $ (1.93) | $ (0.5) | $ 1.75 |
Discontinued operations | 1.04 | 0 | 21.74 |
Net income/(loss) per share | $ (0.89) | $ (0.5) | $ 23.49 |
Shares used in computing basic net income/(loss) per share attributable to Sohu.com Limited | 34,109 | 34,945 | 39,501 |
Diluted net income/(loss) per share attributable to Sohu.com Limited | |||
Continuing operations | $ (1.93) | $ (0.5) | $ 1.75 |
Discontinued operations | 1.04 | 0 | 21.74 |
Net income/(loss) per share | $ (0.89) | $ (0.5) | $ 23.49 |
Shares used in computing diluted net income/(loss) per share attributable to Sohu.com Limited | 34,109 | 34,945 | 39,501 |
Brand advertising [Member] | |||
Revenues: | |||
Revenues | $ 88,689 | $ 103,233 | $ 134,967 |
Cost of revenues: | |||
Cost of revenues | 71,103 | 86,642 | 99,522 |
Online games [Member] | |||
Revenues: | |||
Revenues | 479,697 | 585,424 | 638,225 |
Cost of revenues: | |||
Cost of revenues | 65,029 | 91,001 | 87,616 |
Others [Member] | |||
Revenues: | |||
Revenues | 32,286 | 45,215 | 62,384 |
Cost of revenues: | |||
Cost of revenues | $ 9,625 | $ 13,930 | $ 17,533 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 600,672,000 | $ 733,872,000 | $ 835,576,000 |
Cost of revenues | 145,757,000 | 191,573,000 | 204,671,000 |
General and administrative from a related party | 48,934,000 | 56,920,000 | 81,880,000 |
Related Party [Member] | |||
General and administrative from a related party | 0 | 0 | 35,000 |
Brand advertising [Member] | |||
Revenues | 88,689,000 | 103,233,000 | 134,967,000 |
Cost of revenues | 71,103,000 | 86,642,000 | 99,522,000 |
Brand advertising [Member] | Related Party [Member] | |||
Revenues | 208,000 | 139,000 | 173,000 |
Cost of revenues | 218,000 | 0 | 0 |
Others [Member] | |||
Revenues | 32,286,000 | 45,215,000 | 62,384,000 |
Cost of revenues | 9,625,000 | 13,930,000 | 17,533,000 |
Others [Member] | Related Party [Member] | |||
Revenues | $ 3,737,000 | $ 3,758,000 | $ 4,155,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash flows from operating activities: | ||||
Net income/(loss) | $ (30,644) | $ (17,341) | $ 934,173 | |
Net income from discontinued operations, net of tax | 35,426 | 0 | 864,902 | |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||
Amortization of intangible assets and purchased video content in prepaid expense | 13,624 | 11,308 | 12,461 | |
Depreciation | 16,621 | 19,990 | 23,495 | |
Share-based compensation expense | 708 | 4,939 | 8,578 | |
Impairment of long-term investments | [1] | 283 | 11,954 | 215 |
Impairment of other intangible assets and other assets | 5,845 | 2,040 | 1,758 | |
Investment (gain)/loss from long-term investments | (1,135) | 6,150 | (6,345) | |
Allowance for credit losses | (310) | 116 | 7,970 | |
Change in fair value of financial instruments | (199) | (10,340) | (2,470) | |
Others | (522) | (288) | (909) | |
Changes in assets and liabilities: | ||||
Accounts receivable | (4,403) | 4,504 | 444 | |
Prepaid and other assets | 951 | (116) | (2,770) | |
Accounts payable | (5,489) | (17,552) | (904) | |
Receipts in advance and deferred revenue | 3,439 | (4,611) | 3,776 | |
Tax payables | 6,582 | 19,490 | (4,968) | |
Deferred tax liabilities | 24,286 | 21,862 | 26,239 | |
Accrued liabilities and other short-term liabilities | (19,778) | (19,863) | (22,231) | |
Net cash provided by/(used in) continuing operating activities | (25,567) | 32,242 | 113,610 | |
Net cash used in discontinued operating activities | 0 | 0 | (175,888) | |
Net cash provided by/(used in) operating activities | (25,567) | 32,242 | (62,278) | |
Cash flows from investing activities: | ||||
Purchase of fixed assets | (3,225) | (8,506) | (6,718) | |
Purchase of intangible and other assets | (15,187) | (15,335) | (35,489) | |
Purchase of long-term investments | (22,076) | 0 | (15,891) | |
Proceeds from time deposits | 168,225 | 0 | 0 | |
Purchase of time deposits | (295,488) | (90,666) | (188,215) | |
Proceeds from short-term investments | 1,375,757 | 1,935,518 | 740,730 | |
Purchase of short-term investments | (1,503,242) | (2,060,101) | (1,034,337) | |
Other cash proceeds related to investing activities | 3,571 | 6,301 | 2,501 | |
Net cash used in continuing investing activities | (291,665) | (232,789) | (537,419) | |
Net cash provided by discontinued investing activities | 0 | 0 | 1,054,148 | |
Net cash provided by/(used in) investing activities | (291,665) | (232,789) | 516,729 | |
Cash flows from financing activities: | ||||
Proceeds from short-term bank loans | 0 | 0 | 153,000 | |
Repurchase of Sohu Ordinary Shares, represented by ADSs | (6,560) | (82,136) | (17,418) | |
Repayments of loans from banks | 0 | 0 | (560,550) | |
Net cash used in continuing financing activities | (6,560) | (82,136) | (424,968) | |
Net cash used in discontinued financing activities | 0 | 0 | (9,132) | |
Net cash used in financing activities | (6,560) | (82,136) | (434,100) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11,982) | (16,773) | 20,997 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (335,774) | (299,456) | 41,348 | |
Cash, cash equivalents and restricted cash at beginning of year | 701,462 | 1,000,918 | 959,570 | |
Cash, cash equivalents and restricted cash at end of year | 365,688 | 701,462 | 1,000,918 | |
Cash, cash equivalents and restricted cash of continuing operations, end of year | 365,688 | 701,462 | 1,000,918 | |
Supplemental cash flow disclosures from continuing operations: | ||||
Cash paid for income taxes | (28,053) | (39,636) | (46,145) | |
Cash paid for interest expense | 0 | 0 | (7,633) | |
Barter transactions | 3,601 | 3,236 | 5,086 | |
Supplemental schedule of non-cash investing activity from continuing operations: | ||||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | $ (7,425) | $ (8,196) | $ (19,391) | |
[1]In the fourth quarter of 2022, the Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Accumulated Earnings/(Deficit) [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2020 | $ 1,031,981 | $ 39 | $ 952,733 | $ 0 | $ 29,189 | $ (634,592) | $ 684,612 |
Share-based compensation expense | 4,427 | 0 | 805 | 0 | 0 | 0 | 3,622 |
Settlement/adjustment of share-based awards in subsidiary | 0 | 0 | 7,579 | 0 | 0 | 0 | (7,579) |
Net income/(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | 934,173 | 0 | 0 | 0 | 0 | 927,725 | 6,448 |
Repurchase of Sohu Ordinary Shares, represented by ADSs | (18,776) | 0 | 0 | (18,776) | 0 | 0 | 0 |
Disposal of noncontrolling interests in Tencent/Sohu Sogou Share Purchase | (687,303) | 0 | 0 | 0 | 0 | 0 | (687,303) |
Write-down of transaction costs related to business acquisitions | 4,211 | 0 | 4,211 | 0 | 0 | 0 | 0 |
Other comprehensive income/(loss) | 23,474 | 0 | 0 | 0 | 21,956 | 0 | 1,518 |
Ending balance at Dec. 31, 2021 | 1,292,187 | 39 | 965,328 | (18,776) | 51,145 | 293,133 | 1,318 |
Share-based compensation expense | 676 | 0 | 676 | 0 | 0 | 0 | 0 |
Net income/(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (17,341) | 0 | 0 | 0 | 0 | (17,343) | 2 |
Repurchase of Sohu Ordinary Shares, represented by ADSs | (80,778) | (5) | (99,549) | 18,776 | 0 | 0 | 0 |
Disposal of a partially-held subsidiary | (52) | 0 | 0 | 0 | 0 | 0 | (52) |
Other comprehensive income/(loss) | (83,982) | 0 | 0 | 0 | (83,982) | 0 | 0 |
Ending balance at Dec. 31, 2022 | 1,110,710 | 34 | 866,455 | 0 | (32,837) | 275,790 | 1,268 |
Share-based compensation expense | 96 | 0 | 96 | 0 | 0 | 0 | 0 |
Net income/(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (30,644) | 0 | 0 | 0 | 0 | (30,379) | (265) |
Repurchase of Sohu Ordinary Shares, represented by ADSs | (6,560) | 0 | 0 | (6,560) | 0 | 0 | 0 |
Disposal of a partially-held subsidiary | (681) | 0 | 0 | 0 | 0 | 0 | (681) |
Other comprehensive income/(loss) | (13,643) | 0 | 0 | 0 | (13,643) | 0 | 0 |
Ending balance at Dec. 31, 2023 | $ 1,059,278 | $ 34 | $ 866,551 | $ (6,560) | $ (46,480) | $ 245,411 | $ 322 |
The Company and Nature of Opera
The Company and Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
THE COMPANY AND NATURE OF OPERATIONS [Abstract] | |
The Company and Nature of Operations | 1. THE COMPANY AND NATURE OF OPERATIONS Nature of Operations and Organization Sohu.com Limited was incorporated in the Cayman Islands on May 30, 2003 as a direct wholly-owned subsidiary of Sohu.com Inc., which was incorporated in Delaware in August 1996 and was the ultimate parent company of the Sohu Group (as defined below) until its dissolution on May 31, 2018. On July 17, 2000, Sohu.com Inc. completed an initial public offering (“IPO”) of shares of its common stock on Nasdaq trading under the symbol “SOHU.” On May 31, 2018, pursuant to a proposal for the dissolution of Sohu.com Inc. and adoption of a plan of complete liquidation and dissolution of Sohu.com Inc. that was approved by the stockholders of Sohu.com Inc. at a special meeting of stockholders held on May 29, 2018, Sohu.com Inc. was dissolved, all outstanding shares of the common stock of Sohu.com Inc. were delisted and cancelled, and American Depositary Shares (“ADSs”) representing all outstanding ordinary shares of Sohu.com Limited (the “Ordinary Shares”) were distributed on a share-for-share top-tier, The Sohu Group consists of Sohu, which when referred to in this report, unless the context requires otherwise, consists of the businesses of Sohu.com Limited and its corresponding subsidiaries and the VIEs that it consolidates, excluding the businesses and the corresponding subsidiaries of Changyou and the VIEs that Changyou consolidates, and Changyou. As used in this report, “Changyou” refers to Changyou.com Limited, a Cayman Islands exempted company, and, unless the context requires otherwise, includes its subsidiaries and the VIEs that it consolidates, but excludes Fox Information Technology (Tianjin) Limited (“Video Tianjin”) and its subsidiaries. Changyou is a wholly-owned subsidiary of the Company. Changyou completed its IPO on Nasdaq in April 2009, trading under the symbol “CYOU.” On April 17, 2020, Sohu acquired all outstanding shares of Changyou that it did not already beneficially own pursuant to the merger (the “Changyou Merger”) of an indirect newly-formed wholly-owned subsidiary with and into Changyou, with Changyou being the company surviving the Changyou Merger and continuing as a privately-held company that is wholly-owned by Sohu.com Limited. As a result of the completion of the Changyou Merger, Sohu.com Limited beneficially holds and controls Prior to the completion of the Tencent/Sohu Sogou Share Purchase (as defined below) on September 23, 2021, Sogou Inc. (“Sogou”) was an indirect controlled subsidiary of the Company. Sogou completed its IPO on the New York Stock Exchange (the “NYSE”) in November 2017, trading under the symbol “SOGO.” On September 23, 2021, Sohu completed the transactions contemplated by a Share Purchase Agreement, dated September 29, 2020 and amended on December 1, 2020 and further amended on July 19, 2021, by and among the Company, the Company’s wholly-owned subsidiary Sohu.com (Search) Limited (“Sohu Search”), and TitanSupernova Limited (“Tencent Merger Sub”), an wholly-owned subsidiary of Tencent Holdings Limited (“Tencent”) (as so amended, the “Tencent/Sohu Sogou Share Purchase Agreement”), in which Sohu Search sold all of the Class A ordinary shares of Sogou and Class B ordinary shares of Sogou owned by Sohu Search to Tencent Merger Sub at a purchase price of $9.00 per share (the “Tencent/Sohu Sogou Share Purchase”). The Sohu Group received gross consideration of approximately $1.18 billion in cash from the Tencent/Sohu Sogou Share Purchase. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, Sohu no longer has any beneficial ownership interest in Sogou. As Sohu.com Limited, or its predecessor Sohu.com Inc., was the controlling shareholder of Sogou before the effectiveness of the Tencent/Sohu Sogou Share Purchase, Sohu.com Limited consolidated Sogou in its consolidated financial statements as discontinued operations, and recognized noncontrolling interests reflecting economic interests in Sogou held by shareholders or beneficial owners other than Sohu.com Limited (the “Sogou noncontrolling shareholders”). The Sohu Group is a leading Chinese online media, video, and game business group providing comprehensive online products and services on PCs and mobile devices in the Chinese mainland. Through the operation of Sohu and Changyou, the Sohu Group generates brand advertising revenues, online game revenues, and other revenues. Prior to the completion of the Tencent/Sohu Sogou Share Purchase, the Sohu Group also generated search and search-related advertising revenues through the discontinued operations of Sogou. Most of the Sohu Group’s operations are conducted through the Group’s Chinese mainland-based subsidiaries and consolidated VIEs. The principal subsidiaries and VIEs through which the Group conducted its business operations as of December 31, 2023 are described below: Name of Entity Date of Place of Effective Subsidiaries: Sohu.com (Hong Kong) Limited Incorporated on April 19, 2000 Hong Kong 100% Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”) Incorporated on July 25, 2003 People’s Republic of China 100% Sohu.com (Search) Limited Incorporated on October 28, 2005 Cayman Islands 100% Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) Incorporated on June 19, 2006 People’s Republic of China 100% Changyou.com Limited Incorporated on August 6, 2007 Cayman Islands 100% Changyou.com (HK) Limited Incorporated on August 13, 2007 Hong Kong 100% Beijing AmazGame Age Internet Technology Group Co., Ltd. (“AmazGame”) Incorporated on September 26, 2007 People’s Republic of China 100% Sohu.com (Game) Limited Incorporated on February 11, 2008 Cayman Islands 100% Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”) Incorporated on October 29, 2009 People’s Republic of China 100% Changyou.com Korea LLC Incorporated on January 7, 2010 Korea 100% Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”) Incorporated on May 31, 2010 People’s Republic of China 100% Fox Information Technology (Tianjin) Limited Incorporated on November 17, 2011 People’s Republic of China 100% Sohu Focus Limited Incorporated on July 11, 2013 Cayman Islands 100% Sohu Focus (HK) Limited (“Focus HK”) Incorporated on July 26, 2013 Hong Kong 100% Beijing Changyou Chuangxiang Software Technology Co., Ltd. (“Changyou Chuangxiang”) Incorporated on November 8, 2016 People’s Republic of China 100% VIEs: Beijing Century High-Tech Investment Co., Ltd. (“High Century”) Incorporated on December 28, 2001 People’s Republic of China 100% Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong”) Incorporated on February 7, 2002 People’s Republic of China 100% Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”) Incorporated on July 31, 2003 People’s Republic of China 100% Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”) Incorporated on August 23, 2007 People’s Republic of China 100% Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) Incorporated on May 17, 2010 People’s Republic of China 100% Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) Consolidated beginning on May 28, 2010 People’s Republic of China 100% Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) Incorporated on August 5, 2010 People’s Republic of China 100% Tianjin Jinhu Culture Development Co., Ltd (“Tianjin Jinhu”) Incorporated on November 24, 2011 People’s Republic of China 100% Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) Incorporated on July 15, 2014 People’s Republic of China 100% Guangzhou Qianjun Network Technology Co., Ltd. (“Guangzhou Qianjun”) Consolidated beginning on November 25, 2014 People’s Republic of China 100% Sohu’s Business Brand Advertising Business Sohu’s main business is the brand advertising business, which offers to users over Sohu’s online media various content, products and services across multiple Internet-enabled devices such as mobile phones, tablets and PCs. The majority of Sohu’s products and services are provided in the Chinese mainland through Sohu Media Portal and Sohu Video. • Sohu Media Portal. • Sohu Video. Revenues generated by the brand advertising business are classified as brand advertising revenues in the Sohu Group’s consolidated statements of comprehensive income. Other Sohu Business Sohu’s other business consists primarily of paid subscription services, revenue sharing from other platforms, and interactive broadcasting services. Revenues generated by Sohu from the other business are classified as other revenues in the Sohu Group’s consolidated statements of comprehensive income. Changyou’s Business Changyou’s business consists of the online game business and the platform channel business. The platform channel business consists primarily of online advertising and mobile game distribution services. Online Game Business Changyou’s online game business offers PC games and mobile games to game players. • PC games. • Mobile games. All of Changyou’s games are operated under the item-based revenue model, meaning that game players can play the games for free, but may choose to pay for virtual items, which are non-physical in-game Changyou’s dominant games are the PC game Tian Long Ba Bu (“TLBB PC”) and the mobile game Legacy TLBB Mobile. For the year ended December 31, 2023, revenues from TLBB PC were $ million, accounting for approximately % of Changyou’s online game revenues, approximately % of Changyou’s total revenues, and approximately % of the Sohu Group’s total revenues. For the year ended December 31, 2023, revenues from Legacy TLBB Mobile were $55.4 million, accounting for approximately 12% of Changyou’s online game revenues, approximately 11% of Changyou’s total revenues, and approximately 9% of the Sohu Group’s total revenues. Platform Channel Business Changyou’s platform channel business consists primarily of the operation of the 17173.com Website. The 17173.com Website provides news, electronic forums, online videos, and other online game information services to game players, as well as mobile game distribution services. Changyou generates online advertising revenues from providing advertising services to third-party advertisers on the 17173.com Website and online game revenues from mobile game distribution services. Sogou’s Business (Discontinued) Between the Company’s entry into the Tencent/Sohu Sogou Share Purchase Agreement on September 29, 2020 and the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, Sogou met the criteria for discontinued operations. Accordingly, the results of Sogou’s operations were excluded from Sohu’s results from continuing operations and income and expenses that were generated by Sogou are reflected as discontinued operations in the Sohu Group’s consolidated statements of comprehensive income. The Company ceased consolidating Sogou in the Company’s consolidated financial statements after September 23, 2021. Retrospective adjustments to the historical statements have been made in order to provide a consistent basis of comparison. Prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, the Group’s search and search-related business consisted primarily of search and search-related advertising services offered by Sogou. Sogou also offered Internet value-added services primarily with respect to the operation of Web games and mobile games developed by third parties, and offered other products and services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of the Company and its subsidiaries and consolidated VIEs. All intra-Group transactions are eliminated except for revenues and expenses arising from intra-Group transactions that are considered to continue after the disposal of the discontinued operations. In the consolidated statements of comprehensive income, results from discontinued operations are reported separately from income and expenses from continuing operations and prior periods are presented on a comparative basis. VIE Consolidation Under ASC 810, if an entity has (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the right to receive economic benefits from the VIE that could be significant to the VIE, then such entity will be considered as holding a controlling financial interest in the VIE, which will make such entity a primary beneficiary of, and will require such entity to consolidate, the VIE. The VIEs through which the Sohu Group conducts a substantial portion of its business operations are wholly owned, directly or indirectly, by certain employees of the Sohu Group as nominee shareholders. For those VIEs with which the Sohu Group has contractual arrangements and with their nominee shareholders, management made evaluations of the relationships between the Sohu Group and such VIEs and the economic benefit flow of such contractual arrangements with such VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Sohu Group controls 100% of the nominee shareholders’ voting interests in such VIEs and the fact that any such VIE, if it has one or more wholly-owned subsidiaries that are also VIEs that the Sohu Group consolidates, holds and controls 100% of the shareholder’s voting interests in such subsidiary or subsidiaries even if any such subsidiary itself is not a party to any VIE contract with the Sohu Group. As a result of such evaluation, management concluded that the Sohu Group holds a controlling financial interest in all of the VIEs that it consolidates because the Sohu Group has the power to direct the activities of such VIEs that most significantly affect their economic performances and the right to receive economic benefits that could be significant to such VIEs and that, therefore, the Sohu Group is the primary beneficiary of, and is required under ASC 810 to consolidate, all of such VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Prior to the completion of the Tencent/Sohu Sogou Share Purchase, the noncontrolling interests in the Sohu Group’s consolidated financial statements consisted of noncontrolling interests for Sogou and noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, no noncontrolling interests are recognized except for noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. Noncontrolling Interest for Changyou The Company beneficially holds and controls 100% of the combined total of Changyou’s outstanding ordinary shares and 100% of the total voting power in Changyou. The Company consolidates Changyou in its consolidated financial statements, and no noncontrolling interests are recognized except for noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. Noncontrolling Interest for Sogou Prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, as Sogou’s controlling shareholder, the Company consolidated Sogou in its consolidated financial statements as discontinued operations, and recognized noncontrolling interest reflecting economic interests in Sogou held by Sogou noncontrolling shareholders. Sogou’s net income/(loss) attributable to the Sogou noncontrolling shareholders is recorded as net income/(loss) from discontinued operations attributable to the noncontrolling shareholders in the Company’s consolidated statements of comprehensive income, based on the noncontrolling shareholders’ share of the economic interest in Sogou. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity and adjustment for share-based compensation expense in relation to share-based awards that were unvested and vested but not yet settled and adjustment for changes in the Company’s ownership in Sogou, were recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, the Company no longer has any beneficial ownership interest in Sogou. Discontinued operations Discontinued operations are reported when a component, or a group of components, of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) has a major impact on an entity’s financial results and operations. In the statement of financial position, the assets and liabilities of the discontinued operation are presented separately in the asset and liability sections, respectively, of the statement of financial position and prior periods are presented on a comparative basis. In the consolidated statements of comprehensive income, results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in the consolidated statements of cash flows. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-Group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. Revenue Recognition Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The recognition of revenues involves certain management judgments, including the estimation of the fair value of an advertising-for-advertising licensed-out Starting in 2023, Focus, which used to conduct the Group’s online real estate services, was integrated into Sohu Media Portal. To provide a consistent basis of comparison, retrospective adjustments have been made to brand advertising revenues from Sohu Media Portal for the years ended December 31, 2021 and 2022, respectively, to include brand advertising revenues from Focus, which were presented separately for those years. The following table presents the Group’s revenues disaggregated by products and services: Year Ended December 31, 2021 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 97,421 0 97,421 Sohu Video 26,803 0 26,803 17173.com Website 0 10,743 10,743 Online games: PC games 0 469,332 469,332 Mobile games 0 168,893 168,893 Others 62,382 2 62,384 Total $ 186,606 648,970 835,576 Year Ended December 31, 2022 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 76,751 0 76,751 Sohu Video 19,620 0 19,620 17173.com Website 0 6,862 6,862 Online games: PC games 0 425,744 425,744 Mobile games 0 159,680 159,680 Others 45,215 0 45,215 Total $ 141,586 592,286 733,872 Year Ended December 31, 2023 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 66,103 0 66,103 Sohu Video 17,572 0 17,572 17173.com Website 0 5,014 5,014 Online games: PC games 0 368,721 368,721 Mobile games 0 110,976 110,976 Others 32,286 0 32,286 Total $ 115,961 484,711 600,672 Brand Advertising Revenues Brand advertising revenues are generated from brand advertising services. Through mobile devices and PCs, the Group provides advertisement placements to advertisers on different Internet platforms and in different formats. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates the annual revenue volume from each customer with reference to its historical performance. The Group recognizes revenue for the amount of fees it receives from its customers, after deducting sales rebates and net of value-added tax (“VAT”). Brand Advertising Revenues Revenue Recognition of Multiple Performance Obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines the standalone selling price of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where a standalone selling price is not directly observable, the Group generally estimates the selling price based on the prices at which performance obligations of a similar nature and geography are charged to customers. Most of such contracts have all performance obligations completed within the same quarter. Pricing Model The Group has three main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model and the Cost Per Click (“CPC”) model. (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Given that advertisers benefit from displayed advertisements evenly over the period the advertisements are displayed, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. (ii) CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are fixed in accordance with the Group’s pricing practices for similar advertisers, the Group recognizes revenue based on the fixed unit prices and the number of qualifying displays upon their occurrence, provided all revenue recognition criteria have been met. (iii) CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser. The unit price for each click is auction-based, and the Group charges advertisers on a per-click Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game Changyou is the principal of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile App stores, but net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from Changyou’s self-operated PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Changyou’s self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games Self-operated Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile App stores. The mobile App stores in turn pay Changyou proceeds after deducting their share of pre-agreed Changyou’s self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly-developed mobile games, Changyou remits a pre-agreed Licensed Out Mobile Games Changyou also authorizes third parties to operate its mobile games. Licensed out games include mobile games developed in house, such as Changyou’s mobile games Legacy TLBB Mobile and New TLBB Mobile, and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from the third-party licensee operators. Changyou receives additional up-front Other Revenues Other revenues consist primarily of revenues from paid subscription services, revenue sharing from other platforms, and interactive broadcasting services. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. The allowance for credit losses is estimated based upon the Group’s assessment of various factors, including past collection experience and consideration of current and future economic conditions and other factors that may affect the Group’s customers’ ability to pay. Contract assets as of December 31, 2023 were not material. The allowance for credit losses was $12.1 million and $13.9 million, respectively, as of December 31, 2023 and 2022. Contract liabilities are presented as receipts in advance and deferred revenue on the consolidated balance sheets of the Group. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from game players in the online game business and from advertisers in the brand advertising business. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the receipts in advance and deferred revenue balance at the beginning of the period was $43.5 million for the year ended December 31, 2023. There was no significant change in the contract assets and contract liability balances during 2023. Revenue recognized in 2023 from performance obligations related to prior years was not material. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. (iii) The Group applied the portfolio approach in determining the commencement date of consumption and the estimated lives of virtual items for the recognition of games revenue, given that the effect of applying a portfolio approach to a group game players’ behaviors would not differ materially from considering each one of them individually. (iv) The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. Cost of Revenues Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of salary and benefits expenses, content and license costs, and costs incurred for related content marketing campaigns. For self-developed video content, production costs incurred in excess of the amount of revenue contracted for are expensed as incurred. Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expenses, bandwidth service costs, and content and license costs. Cost of Other Revenues Cost of other revenues mainly consists of content and license costs related to paid subscription services, revenue-sharing payments related to interactive broadcasting services, and revenue-sharing payments related to payment channels. Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, content and license costs, depreciation and amortization expenses, bandwidth service expenses, and professional fees. These expenses are incurred for the enhancement and maintenance of the Sohu Group’s Internet platforms as well as for its products and services. The development costs of online games are expensed as incurred, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expenses, travel and entertainment expenses, professional fees, and facilities expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the Group’s products and services. Advertising and promotional expenses are expensed as incurred. General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, professional fees, facilities expenses, travel and entertainment expenses, and office expenses. Share-based Compensation Expense Sohu (excluding Fox Video Limited (“Fox Video,” which was referred to in the Company’s previous annual reports on Form 20-F For share-based awards for which a grant date has occurred, 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 share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured After the completion of the Changyou Merger, the board of directors of the Company (the “Sohu Board”) approved a modification plan for the granted but unvested share options under the Changyou 2014 Share Incentive Plan and the Changyou 2019 Share Incentive Plan (the “Changyou Plans’ Modification”). After the Changyou Plans’ Modification, liability is accrued over the service period based on a fixed price of $5.39 per Changyou Class A ordinary share, which equals the Changyou Merger consideration of $5.40 per Changyou Class A ordinary share minus the per-share re-measurement Sohu (excluding Fox Video) and Changyou Share-based Awards Sohu (excluding Fox Video) Share-based Awards In determining the fair value of share options granted by Sohu (excluding Fox Video) as share-based awards, the public market price of the underlying shares at each reporting date was used, and a binomial valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Upon the dissolution of Sohu.com Inc. on May 31, 2018, Sohu.com Limited assumed all then existing obligations of Sohu.com Inc. with respect to equity incentive awards that had been granted under Sohu.com Inc.’s Amended and Restated 2010 Stock Incentive Plan (the “Sohu 2010 Stock Incentive Plan”) and remained outstanding, and such awards were converted into the right to receive upon exercise or settlement Sohu.com Limited’s ordinary shares under the Sohu.com Limited 2018 Share Incentive Plan (the “Sohu 2018 Share Incentive Plan”) rather than shares of the common stock of Sohu.com Inc., subject to the other terms of such outstanding awards. Options for the purchase of Sohu.com Limited’s ordinary shares, including options converted from those contractually granted under the Sohu 2010 Stock Incentive Plan, are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured Changyou Share-based Awards Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan and the Changyou 2019 Share Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured After the Changyou Plans’ Modification, share-based compensation expense is accrued over the service period based on the fixed price of re-measurement As of December 31, 2023, 8,020,504 of these Changyou share options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. Compensation Expense Recognition For options and restricted share units granted with respect to Sohu (excluding Fox Video) shares and Changyou shares, compensation expense is recognized on a graded vesting method upon the requisite service period and certain subjective performance targets being met. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and no compensation expense is recorded for the number of awards so estimated. Fox Video Share-based Awards On January 4, 2012, Fox Video, a Cayman Islands company that was wholly owned by Sohu.com Limited and before June 16, 2022 was the Offshore holding entity of the Sohu Group’s online video business, adopted a 2011 Share Incentive Plan (the “Fox Video Share Incentive Plan,” which was referred to in the Company’s previous annual reports on Form 20-F Taxation Chinese Mainland Income Tax Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets are related to net operating losses and temporary book versus tax basis differences for its Chinese mainland-based subsidiaries and the VIEs that it consolidates, which are subject to income tax in the Chinese mainland. Chinese Mainland Withholding Tax on Dividends Dividends distributed by foreign-invested enterprises in the Chinese mainland to their immediate holding companies outside the Chinese mainland are subject to a 10% withholding tax. A lower withholding tax rate may be applied if there is a tax treaty between the Chinese mainland 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 an arrangement between the Chinese mainland and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income,” if such holding company is considered a non-Chinese Chinese Mainland Value Added Tax All of the Sohu Group’s revenues have been subject to VAT since May 1, 2016. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6% or 13%) Taxation on distributions from VIEs to Subsidiaries Pursuant to the contractual agreements with the VIEs and their respective shareholders, the Sohu Group’s Chinese mainland subsidiaries charge the VIEs service fees. For income tax purposes, the Sohu Group’s Chinese mainland subsidiaries and the VIEs file income tax returns on a separate basis. The service fees paid by the VIEs are deductible by the VIEs for Chinese mainland income tax purposes and are recognized as income by the Sohu Group’s Chinese mainland subsidiaries. U.S. Corporate Income Tax Sohu.com Inc., which was formerly the top-tier one-time Treatment of Toll Charge Related to the U.S. TCJA Beginning in the fourth quarter of 2017, the Sohu Group had recognized a provisional amount of income tax expense for the Toll Charge of $219 million, which represented management’s estimate of the amount of the Toll Charge that would have been payable by Sohu.com Inc. based on the deemed repatriation to the United States of its share of previously deferred earnings of certain of its non-U.S. For the fourth quarter of 2018, the Sohu Group’s management re-evaluated that The tax benefit recognized and the unrecognized tax benefit in relation to the Toll Charge may be subject to further adjustment in subsequent periods based on facts and circumstances that arose after December 31, 2023, such as any IRS assessments upon audit and management’s further judgment and estimates. Uncertain Tax Positions The Sohu Group is subject to various taxes in different jurisdictions, but primarily the Chinese mainland. Management reviews regularly the adequacy of the provisions for taxes as they relate to the Group’s income and transactions. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step Net Income/(Loss) per Share Basic net income/(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income/(loss) per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary 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. Additionally, for purposes of calculating the numerator of diluted net income/(loss) per share, the net income/(loss) attributable to the Sohu Group is calculated as discussed below. The adjustment will not be made if there is an anti-dilutive effect. Changyou’s net income/(loss) attributable to Sohu Sohu holds 100% of the combined total of Changyou’s outstanding ordinary shares, so Changyou’s net income/(loss) is wholly attributable to Sohu. After the Changyou Plans’ Modification, all of Changyou’s share-based awards became obligation-based awards. Accordingly, all of those Changyou awards are excluded from the calculation of Sohu’s diluted net income/(loss) per share. Changyou’s net income/(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income/(loss) per share. There have been no dilutive effects resulting from Changyou’s existing unvested share options. Sogou’s net income/(loss) attributable to Sohu (Discontinued) Prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, Sogou’s net income/(loss) attributable to Sohu was determined using the percentage that the weighted average number of Sogou shares held by Sohu represented of the weighted average number of Sogou 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 Sogou, which is used for the calculation of basic net income per share. Sogou’s net income/(loss) attributable to Sohu is reflected as discontinued operations in the Sohu Group’s consolidated statements of comprehensive income. In the calculation of Sohu’s diluted net income/(loss) per share, assuming a dilutive effect, the percentage of Sohu’s shareholding in Sogou was calculated by treating unvested Sogou share options where the performance targets had been achieved, as well as vested but unexercised Sogou 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. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu’s diluted income/(loss) per share. As a result, Sogou’s net income/(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income/(loss) per share. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, Sohu no longer has any ownership interest in Sogou and Sogou is not included in Sohu’s consolidated financial statements. 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 marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Sohu Group’s financial instruments consist primarily of cash equivalents, restricted cash, short- |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. DISCONTINUED OPERATIONS Discontinued Operation of Sogou Between Sohu’s entry into the Tencent/Sohu Sogou Share Purchase Agreement on September 29, 2020 and the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, Sogou met the criteria for discontinued operations. Accordingly, the results of operations for Sogou’s business prior to the completion of the Tencent/Sohu Sogou Share Purchase are excluded from Sohu’s results from continuing operations in the Sohu Group’s consolidated statements of comprehensive income and are presented in separate line items as discontinued operations. Retrospective adjustments to the historical statements have been made in order to provide a consistent basis of comparison. Additionally, as of December 31, 2020, the related assets and liabilities associated with the discontinued operations with respect to Sogou were classified as assets held for sale and liabilities held for sale associated with discontinued operations in the Sohu Group’s consolidated balance sheets to provide comparable financial information. Long-lived assets have not been depreciated or amortized after they were classified as held for sale. As a result, for the period ended September 23, 2021, depreciation and amortization expenses of $46.7 million were not recognized for long-lived assets accordingly. On September 23, 2021, the Tencent/Sohu Sogou Share Purchase was completed, and Sohu recognized a gain The following tables set forth the results of operations and cash flows of discontinued operations with respect to Sogou, that were included in the Sohu Group’s consolidated financial statements (in thousands): Year Ended December 31, 2021 (1) Revenues $ 407,607 Cost of revenues 274,408 Gross profit 133,199 Operating expenses: Research and development (2) 141,506 Sales and marketing (2) 53,481 General and administrative (2) 11,854 Total operating expenses 206,841 Operating loss (73,642) Interest income 2,377 Interest expense (761) Foreign currency exchange loss (848) Other income, net 81,655 Income from discontinued operations before income tax expense 8,781 Income tax benefit (1,112) Results of operations from discontinued operations, net of tax 9,893 Gain on disposal of discontinued operations 855,009 Net income from discontinued operations, net of tax 864,902 Year Ended December 31, 2021 (1)(3) Statutory Rate: 25% Effect of tax holidays applicable to subsidiaries and consolidated VIEs 127% Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs (90%) Changes in valuation allowance for deferred tax assets 349% Research and development super-deduction and other permanent book-tax (249%) Capital gains from equity investments (175%) (13%) Year Ended December 31, 2021 (1) Net cash used in discontinued operating activities $ (175,888) Net cash provided by discontinued investing activities 1,054,148 Net cash used in discontinued financing activities (9,132) Note (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. Note (2): Expenses generated from marketing services between the Sohu Group and Sogou, and leasing expenses generated from a building that Sohu leased to Sogou Note (3): The changes in the effective tax rate for the period ended September 23, 2021 resulted from the lower income from discontinued operations before income tax expense. Discontinued Operation of Shanghai Jingmao In May 2010, Changyou acquired 50% of the equity interests in Shanghai Jingmao Culture Communication Co., Ltd. (“Shanghai Jingmao”) and an affiliate of Shanghai Jingmao, which were primarily engaged in the cinema advertising business. In January 2011, Changyou acquired the remaining 50% of the equity interests in Shanghai Jingmao and its affiliate. Changyou ceased operating the cinema advertising business and wound down the business in August 2019 as a result of a Chinese court in Shanghai having granted a petition by Shanghai Jingmao for bankruptcy relief on August 12, 2019. Accordingly, the results of operations for Changyou’s cinema advertising business have been excluded from Changyou’s results from continuing operations in the consolidated statements of comprehensive income and are presented in separate line items as discontinued operations. Retrospective adjustments to the historical statements have been made in order to provide a consistent basis of comparison. Changyou recognized nil disposal gain/loss from 2019 to 2022 given uncertainty over the distribution of insolvent assets as the legal proceedings involving the bankruptcy were still in progress. On August 10, 2023, the bankruptcy proceeding was concluded by the court and, as a result, Changyou recognized an aggregate of gain |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | 4. SEGMENT INFORMATION The Sohu Group’s segments are business units that offer different services and are reviewed separately by the CODM in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. There are two segments in the Sohu Group, consisting of Sohu and Changyou. As most of the Sohu Group’s long-lived assets are located in, and substantially all of the revenues of the Sohu Group’s reportable segments are derived from the Chinese mainland, where the Sohu Group’s services and products are provided to customers, no geographical information is presented. The following tables present summary information by segment (in thousands): Year Ended December 31, 2021 Sohu Changyou Eliminations Consolidated Revenues $ 186,606 $ 648,970 $ 0 $ 835,576 Segment cost of revenues (1) (113,881) (90,517) 4 (204,394) Segment gross profit 72,725 558,453 4 631,182 SBC in cost of revenues (2) (1) (276) 0 (277) Gross profit 72,724 558,177 4 630,905 Operating expenses: Product development (1) (113,186) (151,773) 0 (264,959) Sales and marketing (1) (126,126) (56,396) 0 (182,522) General and administrative (1) (36,949) (40,702) 0 (77,651) SBC in operating expenses (2) (804) (7,497) 0 (8,301) Total operating expenses (277,065) (256,368) 0 (533,433) Operating profit/(loss) (204,341) 301,809 4 97,472 Other income, net 29,416 Interest income 15,641 Interest expense (7,500) Exchange difference (3,462) Income before income tax expense 131,567 Income tax expense (62,296) Net income from continuing operations 69,271 Net income from discontinued operations 864,902 Net income $ 934,173 Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $23.4 million and $12.6 million, respectively, for the year ended December 31, 2021. Note (2): “SBC” stands for share-based compensation expense. Year Ended December 31, 2022 Sohu Changyou Eliminations Consolidated Revenues $ 141,586 $ 592,286 $ 0 $ 733,872 Segment cost of revenues (1) (98,373) (93,009) 0 (191,382) Segment gross profit 43,213 499,277 0 542,490 SBC in cost of revenues (2) (47) (144) 0 (191) Gross profit 43,166 499,133 0 542,299 Operating expenses: Product development (1) (120,431) (138,315) 0 (258,746) Sales and marketing (1) (167,837) (57,515) 0 (225,352) General and administrative (1) (32,494) (21,832) 0 (54,326) SBC in operating expenses (2) (630) (4,118) 0 (4,748) Total operating expenses (321,392) (221,780) 0 (543,172) Operating profit/(loss) (278,226) 277,353 0 (873) Other income, net 17,643 Interest income 17,311 Exchange difference 6,524 Income before income tax expense 40,605 Income tax expense (57,946) Net loss $ (17,341) Note (1): Total depreciation and amortization expenses of Sohu and Note (2): “SBC” stands for share-based compensation expense. Year Ended December 31, 2023 Sohu Changyou Eliminations Consolidated Revenues $ 116,228 $ 484,709 $ (265) $ 600,672 Segment cost of revenues (1) (78,858) (66,882) 0 (145,740) Segment gross profit 37,370 417,827 (265) 454,932 SBC in cost of revenues (2) (7) (10) 0 (17) Gross profit 37,363 417,817 (265) 454,915 Operating expenses: Product development (1) (127,038) (152,911) 263 (279,686) Sales and marketing (1) (174,526) (38,899) 2 (213,423) General and administrative (1) (25,045) (23,380) 0 (48,425) SBC in operating expenses (2) (89) (602) 0 (691) Total operating expenses (326,698) (215,792) 265 (542,225) Operating profit/(loss) (289,335) 202,025 0 (87,310) Other income, net 35,746 Interest income 45,222 Exchange difference 692 Income before income tax expense (5,650) Income tax expense (60,420) Net loss from continuing operations (66,070) Net income from discontinued operations 35,426 Net loss $ (30,644) Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $18.8 million and $11.4 million, respectively, for the year ended December 31, 2023. Note (2): “SBC” stands for share-based compensation expense. As of December 31, 2022 Sohu Changyou Eliminations Consolidated Cash and cash equivalents $ 466,976 $ 230,845 $ 0 $ 697,821 Accounts receivable, net 38,969 28,572 0 67,541 Fixed assets, net (1) 148,447 139,779 0 288,226 Total assets (2) $ 1,891,414 $ 2,572,768 $ (2,486,406) $ 1,977,776 Note (1): Total additions to fixed assets of Sohu and Changyou were $4.6 million and $1.0 million, respectively, for the year ended December 31, 2022. Note (2): The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs, and elimination of intra-Group loans between Sohu and Changyou. As of December 31, 2023 Sohu Changyou Eliminations Consolidated Cash and cash equivalents $ 189,998 $ 172,506 $ 0 $ 362,504 Accounts receivable, net 32,673 38,945 0 71,618 Fixed assets, net (1) 137,820 131,238 0 269,058 Total assets (2) $ 3,100,491 $ 2,950,224 $ (4,168,617) $ 1,882,098 Note (1): Total additions to fixed assets of Sohu and Changyou were $1.1 million and $1.2 million, respectively, for the year ended December 31, 2023. Note (2): The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs, and elimination of intra-Group loans between Sohu and Changyou. |
Share-based Compensation Expens
Share-based Compensation Expense | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-based Compensation Expense | 5. SHARE-BASED COMPENSATION EXPENSE Sohu (excluding Fox Video) and Changyou have incentive plans, and Fox Video before January 4, 2022 had an incentive plan, for the granting of share-based awards, including share options and restricted share units, to members of the boards of directors, management and other key employees. Share-based compensation expense was recognized in costs and expenses for the years ended December 31, 2021, 2022 and 2023 as follows (in thousands): Year Ended December 31, Share-based compensation expense 2021 2022 2023 Cost of revenues $ 277 $ 191 $ 17 Product development expenses 3,904 2,026 156 Sales and marketing expenses 166 128 26 General and administrative expenses 4,231 2,594 509 $ 8,578 $ 4,939 $ 708 Share-based compensation expense was recognized for share awards of Sohu (excluding Fox Video), Changyou and Fox Video as follows (in thousands): Year Ended December 31, Share-based compensation expense 2021 2022 2023 For Sohu (excluding Fox Video) share-based awards $ 1,849 $ 677 $ 96 For Changyou share-based awards 7,773 4,262 612 For Fox Video share-based awards (1,044 ) 0 0 $ 8,578 $ 4,939 $ 708 The negative amounts in the tables above resulted from re-measured There was no capitalized share-based compensation expense for the years ended December 31, 2023, 2022 and 2021. |
Advertising and Promotional Exp
Advertising and Promotional Expenses | 12 Months Ended |
Dec. 31, 2023 | |
ADVERTISING AND PROMOTIONAL EXPENSES [Abstract] | |
Advertising and Promotional Expenses | 6. ADVERTISING AND PROMOTIONAL EXPENSES Advertising and promotional expenses are included in sales and marketing expenses and are expensed as incurred. For the years ended December 31, 2023, 2022 and 2021, advertising and promotional expenses recognized in |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INCOME, NET [Abstract] | |
Other Income, Net | 7. OTHER INCOME, NET The following table summarizes the Sohu Group’s other income/(expense) (in thousands): Year Ended December 31, 2021 2022 2023 Government grant 418 4,608 17,486 Rental income - from properties owned by Sohu (1) 10,427 10,025 7,530 Income from short-term investments 5,260 13,430 4,709 Additional deduction of Chinese mainland value-added tax and individual tax 4,827 4,952 2,486 Investment income/(loss) 6,352 (5,381 ) 1,707 Donations (1,565 ) (31 ) 0 Impairment loss on equity investments (2) (215 ) (11,954 ) (283 ) Others 3,912 1,994 2,111 $ 29,416 $ 17,643 $ 35,746 Note (1): Sogou leased from Sohu, on an arms-length basis, office space at Sohu.com Internet Plaza under a lease that expired on Note (2): In the fourth quarter of 2022, the Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance Sheet Components | 8. BALANCE SHEET COMPONENTS (IN THOUSANDS) As of December 31, 2022 2023 Accounts receivable, net Accounts receivable $ 81,453 83,762 Allowance for credit losses (13,912) (12,144) $ 67,541 71,618 As of December 31, 2022 2023 Prepaid and other current assets Matching loans due from a related party (See Note 9) $ 34,123 $ 33,665 Prepaid taxes 11,468 17,183 Prepaid revenue-sharing costs 12,552 12,400 Prepaid content and license costs (1) 7,349 5,964 Prepaid professional fees 1,999 1,970 Receivables from third party payment platforms 1,711 1,144 Prepaid rental deposits 1,717 1,126 Prepaid advertising and promotion fees 3,437 645 Employee advances 1,023 534 Interest receivable from bank deposits with original maturities of three months or less 430 447 Prepaid office rent and facilities expenses 320 290 Others 6,964 6,603 $ 83,093 $ 81,971 Other short-term liabilities Matching loans due to a related party (See Note 9) 34,123 34,123 Share-based awards in Changyou (See Note 18) 26,906 27,831 Deposits from customers 11,100 10,187 Contract deposits from advertisers 2,030 1,743 Lease liabilities 2,039 1,187 Consideration payable for equity investments 707 695 Contingent liability related to Shanghai Jingmao liquidation (2) 21,172 0 Other payables related to Shanghai Jingmao liquidation (3) 8,587 0 Others 7,868 5,716 $ 114,532 $ 81,482 Note (1): Changyou recognized impairment losses of $5.8 million and $2.0 million for prepaid and other current assets related to content and game licenses for 2023 and 2022, respectively. Note (2): The contingent liability represented the aggregate of estimated potential payments to third parties in connection with the liquidation of Shanghai Jingmao. The stated amount of the contingent liability reflected Changyou’s best estimate as of December 31, 2022 pursuant to ASC 450-20. Note (3): As of December 31, 2022, the stated amount in other payables represented the aggregate amount that Changyou received from the bankruptcy proceedings as a creditor of Shanghai Jingmao during the process of the liquidation of Shanghai Jingmao. In August 2023, as the bankruptcy proceeding was concluded by the court, Changyou reversed those payables and recognized the same amount, together with an additional distribution of $5.2 million received in 2023, as disposal gain. As of December 31, 2022 2023 Receipts in advance and deferred revenue Receipts in advance relating to: Brand advertising business $ 2,696 $ 2,527 Online game business 5,636 3,050 Other business 4,340 4,947 Total receipts in advance 12,672 10,524 Deferred revenue 35,408 40,305 $ 48,080 $ 50,829 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Related Party Transactions | 9. RELATED PARTY TRANSACTIONS Under an agreement between Sohu and Fox Financial Technology Group Limited (“Fox Financial,” formerly known as “SoEasy Internet Finance Group Limited”) entered into in August 2014, Sohu invested $4.8 million and $16.1 million, respectively, in Fox Financial in August 2014 and April 2015. In February 2016, Sohu invested an additional $10.5 million in Fox Financial. Changyou’s Loan Arrangements with Fox Financial Commencing in April 2015, certain subsidiaries of Changyou and certain subsidiaries of Fox Financial entered into a series of loan agreements pursuant to which the subsidiaries of Changyou were entitled to draw down HK dollar-denominated or U.S. dollar-denominated loans from the Fox Financial subsidiaries and the Fox Financial subsidiaries were entitled to draw down equivalent RMB-denominated In December 2018 and 2019, Changyou entered into several supplemental agreements with Fox Financial pursuant to which all accrued and unpaid interest on the loans as of December 31, 2018 and December 31, 2019 was added to the principal of the corresponding loans. In January 2019, Changyou advanced additional RMB denominated loans to Fox Financial so that the principal amounts of Changyou’s outstanding RMB-denominated In December 2019, Changyou entered into additional supplemental agreements with Fox Financial pursuant to which Fox Financial provided security for its repayment obligations to Changyou, and Changyou similarly provided security for its repayment obligations to Fox Financial. Under those supplemental agreements, if Fox Financial fails to repay the RMB-denominated RMB-denominated The loan arrangements expired on December 31, 2020 and no new supplemental agreements were signed. In May 2021, Changyou notified Fox Financial of Changyou’s intention to exercise its rights under the supplemental agreement by applying the security deposit to repay the RMB-denominated loan principal and corresponding interest owed by Fox Financial to Changyou. As of the date of this annual report, Changyou has not received any response from Fox Financial and accordingly, with an abundance of caution, has not so applied any of the security deposit. In connection with such loan arrangements, the Sohu Group recorded in the Sohu Group’s consolidated balance sheets as of December 31, 2023 loans receivable from Fox Financial in a total amount of $33.7 million as prepaid and other current assets, and loans payable to Fox Financial in a total amount of $34.1 million as other short-term liabilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Measurements | 10. 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 marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Sohu Group’s financial instruments consist primarily of cash equivalents, restricted cash, short-term investments, accounts receivable, other current assets, long-term investments, long-term time deposits, accounts payable, accrued liabilities, other short-term liabilities, and long-term other payables. Financial Instruments Measured at Fair Value The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2022 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 541,393 $ 0 $ 541,393 $ 0 Short-term investments 473,624 0 473,624 0 Equity investments with readily determinable fair values 3,208 3,208 0 0 Long-term 265,802 0 265,802 0 The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2023 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 169,240 $ 0 $ 169,240 $ 0 Short-term investments 597,770 0 597,770 0 Debt investments 22,945 0 0 22,945 Long-term 388,613 0 388,613 0 Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits with original maturities of three months or less and notice deposits. The fair values 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 uses 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. Short-term Investments The Sohu Group’s short-term investments mainly consist of investments in financial instruments with a variable interest rate and time deposits with maturities of three months to one year. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets and time deposits, 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) and interest income. 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 December 31, 2023 and 2022, the Sohu Group’s investment in these financial instruments was $597.8 million and $473.6 million, respectively. The investment instruments with variable interest rates were issued by commercial banks in the Chinese mainland, and are indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. For the years ended December 31, 2023 and 2022, the Sohu Group recorded gains from changes in the fair value of short-term investments in the amounts of $4.7 million and $13.4 million, respectively, in the consolidated statements of comprehensive income. Long-term Investments Long-term investments consist of debt investments and equity investments in publicly traded companies, privately-held companies, and limited partnerships. Debt Investments ASC 825-10-25 The Group measures debt investments under the fair value option at a recurring basis. For investments in preferred shares, the fair value was estimated by using the back-solve method, which requires considering the rights and preferences of each class of equity and solving for the total equity value that is consistent with a recent transaction in the subject company’s securities. This method requires making assumptions on future outcomes available to the subject company, the probability of each scenario, expected time to liquidity events, volatility, and risk-free rate (Level 3). As of December 31, 2023 and 2022, the aggregate carrying value of debt investments was a Equity Investments Under ASU 2016-01, The Group measures equity investments under the equity method and equity investments without readily determinable fair values at fair value on a non-recurring Equity Investments Accounted for Using the Equity Method For investments in common stock or in-substance non-recurring non-recurring Equity Investments with Readily Determinable Fair Values For equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Equity Investments without Readily Determinable Fair Values Based on ASU 2016-01, If this measurement alternative is elected, changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in transactions for identical or similar investments of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. When observable price changes were identified, the Group used the back-solve method to re-measure non-recurring Long-term The Sohu Group elected the fair value method at the date of initial recognition of time deposits with maturities over one year and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. The Sohu Group classifies the valuation techniques as Level 2 of fair value measurements. Assets Measured at Fair Value on a Nonrecurring Basis The following table sets forth assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2022 and 2023 (in thousands) Fair value measurements at reporting date using Items As of Quoted Prices Significant Other Significant Purchased video content recorded in prepaid and other assets $ 2,263 $ 0 $ 0 $ 2,263 Intangible assets, net 5,394 0 0 5,394 Goodwill 47,415 0 0 47,415 Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 261 $ 0 $ 0 $ 261 Intangible assets, net 2,226 0 0 2,226 Goodwill 47,163 0 0 47,163 Intangible Assets Intangible assets mainly comprise operating rights for licensed games, purchased video content, domain names and trademarks, computer software, and developed technologies. See Note 14 - Intangible Assets, Net. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination. See Note 13 - Goodwill. Short-term Receivables and Payables Accounts receivable 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, and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short-term nature. Long-term Payables Long-term payables mainly consist of long-term other payables. Long-term other payables are financial |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
Leases | 11. LEASES The Group has entered into operating lease agreements, primarily for offices in the Chinese mainland with lease periods expiring between 2023 and 2026. The determination of whether an arrangement is or contains a lease is made at the inception of the lease by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included on the Group’s consolidated balance sheets. The right-of-use Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Group uses its incremental borrowing rate in determining the present value of the future lease payments, because the interest rate implicit in most of the leases is not readily determinable. The Group estimates its incremental borrowing rate for each leased asset based on the interest rate the Group would incur to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. Certain lease agreements contain an option for the Group to renew a lease for a term agreed to by the Group and the lessor or an option to terminate a lease earlier than the maturity date. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease The Group’s lease agreements generally contain lease and non-lease Non-lease non-lease non-lease Components of operating lease expense are as follows (in thousands): Year ended December 31, 2022 2023 Operating lease expense $ 2,737 $ 2,383 Short-term lease expense 83 307 Total operating lease expense $ 2,820 $ 2,690 Supplemental cash flow information related to leases are as follows (in thousands): Year ended December 31, 2022 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,788 $ 2,314 Year ended December 31, 2022 2023 Right-of-use Operating leases $ 126 $ 3,114 The following table presents supplemental balance sheet information related to the operating leases (in thousands): Year ended December 31, Assets: 2022 2023 Operating lease right-of-use $ 2,479 $ 3,348 Liabilities: Current lease liabilities 2,039 1,187 Non-current 340 2,130 Total operating lease liabilities $ 2,379 $ 3,317 Maturities of lease liabilities under operating leases as of December 31, 2023 are as follows (in thousands): 2024 $ 1,314 2025 1,274 2026 1,013 2027 0 2028 0 Thereafter 0 Total future lease payments 3,601 Less: imputed interest 284 Total present value of lease liabilities $ 3,317 As of December 31, 2023, operating leases recognized in lease liabilities had a weighted average remaining lease term of 2.7 years and a weighted average discount rate of 4.8%. As of December 31, 2023, liabilities for leases that had been entered into, but the terms of which had not yet commenced, amounted to $1.8 million. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2023 | |
FIXED ASSETS [Abstract] | |
Fixed Assets | 12. FIXED ASSETS The following table summarizes the Sohu Group’s fixed assets (in thousands): As of December 31, 2022 2023 Office buildings $ 367,296 $ 361,172 Computer equipment and hardware 110,416 91,183 Leasehold and building improvements 34,212 33,704 Office furniture 6,301 5,374 Vehicles 3,085 2,957 Fixed assets, gross 521,310 494,390 Accumulated depreciation (233,084) (225,332 ) Fixed assets, net $ 288,226 $ 269,058 For the years ended December 31, 2023, 2022 and 2021, depreciation expenses for fixed assets were $16.6 million, $20.0 million and $23.5 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL [Abstract] | |
Goodwill | 13. GOODWILL Changes in the carrying value of goodwill by segment are as follows (in thousands): Sohu Changyou Total Balance as of December 31, 2021 Goodwill 70,800 180,543 251,343 Accumulated impairment losses (32,246 ) (170,286 ) (202,532 ) $ 38,554 $ 10,257 $ 48,811 Transactions in 2022 Foreign currency translation adjustment (1,396 ) 0 (1,396 ) Balance as of December 31, 2022 $ 37,158 $ 10,257 $ 47,415 Balance as of December 31, 2022 Goodwill 69,404 180,543 249,947 Accumulated impairment losses (32,246 ) (170,286 ) (202,532 ) $ 37,158 $ 10,257 $ 47,415 Transactions in 2023 Foreign currency translation adjustment (252 ) 0 (252 ) Balance as of December 31, 2023 $ 36,906 $ 10,257 $ 47,163 Balance as of December 31, 2023 Goodwill 69,152 180,543 249,695 Accumulated impairment losses (32,246 ) (170,286 ) (202,532 ) $ 36,906 $ 10,257 $ 47,163 There was one reporting unit under the Sohu segment, which is the Sohu reporting unit. The reporting units under the Changyou segment consisted of the Changyou online game business and the 17173.com Website. The Changyou online game business was the only reporting unit with goodwill under the Changyou segment. As of October 1, 2023, the Sohu Group tested goodwill for impairment at the reporting unit level. For the Sohu reporting unit, management determined that a quantitative assessment was appropriate, comparing the estimated fair value of the reporting unit to its corresponding net book value. Management estimated the fair value of the Sohu reporting unit using the income approach and the market approach. The income approach considers a number of factors that include expected future cash flows, revenue growth rates, discount rate and profitability. The market approach considers earnings multipliers based on market data of comparable companies engaged in a similar business. The fair value determined using the income approach is compared with comparable market data and reconciled, as necessary. The fair value of the Sohu reporting unit also includes cash not required for working capital and the fair value of real estate held by the Sohu reporting unit for the production of rental income. The fair value of real estate owned and leased to others was determined using the income approach, with key assumptions including rental income from existing and expected lease contracts and market yields of comparable real estate. If rental income decreases and/or market yields increase, the fair value of this real estate, as well as the fair value of the Sohu reporting unit, will decrease. The goodwill impairment assessment is sensitive to the estimates related to these factors, and particularly the fair value of this real estate. For the Changyou online game reporting unit, management determined that a quantitative assessment was appropriate, comparing the estimated fair value of the reporting unit to its corresponding net book value. Management estimated the fair value of the Changyou online game reporting unit using the income approach and the market approach. The income approach considers a number of factors that include expected future cash flows, revenue growth rates, discount rate and profitability. The market approach considers earnings multipliers based on market data of comparable companies engaged in a similar business. The fair value of the Changyou online game reporting unit also includes the net non-operating assets held by Changyou. The fair value determined using the income approach is compared with comparable market data and reconciled, as necessary. If the Sohu Group decreased/increased by 5 As of December 31, 2023 and 2022, management concluded that the fair values of both the Sohu reporting unit and the Changyou online game reporting unit exceeded their carrying values, indicating that the goodwill of neither reporting unit was impaired. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | 14. INTANGIBLE ASSETS, NET As of December 31, 2022 Items Gross Accumulated Accumulated Net Purchased video content $ 71,753 $ (49,920 ) $ (20,885 ) $ 948 Operating rights for licensed games 56,283 (39,638 ) (12,728 ) 3,917 Domain names and trademarks 24,867 (9,752 ) (15,110 ) 5 Computer software 11,832 (11,308 ) 0 524 Developed technologies 8,212 (869 ) (7,343 ) 0 Others 2,743 (905 ) (1,838 ) 0 Total $ 175,690 $ (112,392 ) $ (57,904 ) $ 5,394 As of December 31, 2023 Items Gross Accumulated Accumulated Net Purchased video content $ 50,998 $ (37,502 ) $ (13,097 ) $ 399 Operating rights for licensed games 56,724 (42,857 ) (12,513 ) 1,354 Domain names and trademarks 21,832 (6,974 ) (14,858 ) 0 Computer software 11,538 (11,065 ) 0 473 Developed technologies 8,092 (857 ) (7,235 ) 0 Others 2,696 (889 ) (1,807 ) 0 Total $ 151,880 $ (100,144 ) $ (49,510 ) $ 2,226 Amortization For the years ended December 31, 2023, 2022 and 2021, amortization of intangible assets was $13.6 million, $11.3 million and $12.5 million, respectively. As of December 31, 2023, amortization expenses for future periods are estimated to be as follows: For the year ended December 31, (in thousands) 2024 $ 1,841 2025 363 2026 22 2027 0 2028 0 Thereafter 0 Total expected amortization expense $ 2,226 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
TAXATION [Abstract] | |
Taxation | 15. TAXATION Income Tax Cayman Island Tax Sohu.com Inc., a Delaware corporation, was dissolved on May 31, 2018 and Sohu.com Limited, a Cayman Islands company that immediately prior to the dissolution of Sohu.com Inc. was a direct wholly-owned subsidiary of Sohu.com Inc., replaced Sohu.com Inc. as the top-tier, Hong Kong Tax The Group’s subsidiaries incorporated in Hong Kong are subject to profits tax in Hong Kong at the rate of 16.5% for each of the years ended December 31, 2021, 2022 and 2023. Chinese Mainland Income Tax The majority of the subsidiaries and VIEs of the Sohu Group are based in the Chinese mainland and are subject to income taxes in the Chinese mainland. These Chinese mainland-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 Chinese mainland generally imposes an income tax rate of 25% on all enterprises, but grants preferential tax treatment to HNTEs and Software Enterprises. Under preferential tax treatment, HNTEs can enjoy an income tax rate of 15%, but need to re-apply three-yea Chinese mainland income tax laws and related implementing regulations provide that a Software Enterprise is entitled to an income tax exemption for two years beginning with its first profitable year and a 50 12.5 Principal Entities Qualified as HNTEs As of December 31, 2023, the following principal entities of the Sohu Group were qualified as HNTEs and were entitled to an income tax rate of 15%. - Gamease, AmazGame, Sohu Media and Guangzhou Qianjun re-applied re-apply - Gamespace, Changyou Chuangxiang and Sohu New Momentum qualified as HNTEs for the years 2022 through 2024, and will need to re-apply - Video Tianjin and Sohu Internet qualified as HNTEs for the years 2021 through 2023, and will need to re-apply U.S. Corporate Income Tax Sohu.com Inc., which was formerly the top-tier one-time Treatment of Toll Charge Related to the U.S. TCJA Beginning in the fourth quarter of 2017, the Sohu Group had recognized a provisional amount of income tax expense for the Toll Charge of $219 million, which represented management’s estimate of the amount of the Toll Charge that would have been payable by Sohu.com Inc. based on the deemed repatriation to the United States of its share of previously deferred earnings of certain of its non-U.S. For the fourth quarter of 2018, the Sohu Group’s management re-evaluated In addition, the Sohu Group accrued $ 5 2021, The tax benefit recognized and the unrecognized tax benefit in relation to the Toll Charge may be subject to further adjustment in subsequent periods based on facts and circumstances that arose after December 31, 2023, such as any IRS assessments upon audit and management’s further judgment and estimates. Composition of Income Tax Expense Sohu.com Limited is not subject to income or capital gains tax under the current laws of the Cayman Islands. There are no other taxes likely to be material to Sohu.com Limited levied by the government of the Cayman Islands. The components of income before income taxes are as follows (in thousands): Year ended December 31, 2021 2022 2023 Income/(loss) before income tax expense Income/(loss) from Chinese mainland operations $ 153,708 $ 37,146 $ (22,560) Income/(loss) from non-Chinese (22,141 ) 3,459 16,910 Total income/(loss) before income tax expense from continuing operations $ 131,567 $ 40,605 $ (5,650) Income tax expense applicable to Chinese mainland operations Current tax $ 31,089 $ 27,735 $ 22,701 Deferred tax 26,207 22,524 24,728 Subtotal income tax expense applicable to Chinese mainland operations 57,296 50,259 47,429 Non-Chinese 4,817 7,534 12,850 Non-Chinese 183 153 141 Total income tax expense from continuing operations $ 62,296 $ 57,946 $ 60,420 In 2023, of the $60.4 million total income tax expense, $47.4 million was from Chinese mainland tax, resulting primarily from accrued regular income tax expense of $36.8 million, and $13 million was for U.S. corporate income tax, resulting primarily from accrued interest on an unrecognized tax benefit. In 2022, of the $57.9 million total income tax expense, $50.3 million was from Chinese mainland tax, resulting primarily from accrued regular income tax expense of $46.6 million, and $8 million was for U.S. corporate income tax, resulting primarily from accrued interest on an unrecognized tax benefit. In 2021, of the $62.3 million total income tax expense, $57.3 million was from Chinese mainland tax, resulting primarily from accrued regular income tax expense of $48.4 million, and $5 million was for U.S. corporate income tax, resulting primarily from accrued interest on an unrecognized tax benefit. The combined effects of the income tax exemption and reduction available to the Group are as follows (in thousands, except per share data): Year Ended December 31, 2021 2022 2023 Tax holiday effect $ 1,635 $ (6,282 ) $ (18,961 ) Basic net income/(loss) per share effect 0.04 (0.18 ) (0.56 ) Effective Tax Rate The Chinese mainland generally imposes an income tax rate of 25% on all enterprises, but grants preferential tax treatment to HNTEs and Software Enterprises. The U.S. TCJA significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time Toll Charge on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. The following is reconciliation between the statutory rate and the Group’s effective tax rate. For 2021, 2022 and 2023, the statutory rate represented the Chinese mainland statutory rate of 25%. The table does not reflect any accruals related to the Toll Charge. See “ U.S. Corporate Income Tax Treatment of Toll Charge Related to the U.S. TCJA. Year Ended December 31, 2021 2022 2023 Statutory Rate: 25 % 25 % 25 % Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) (1 %) 15 % (335 %) Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs 3 % 0 % 44 % Effect of withholding taxes 19 % 56 % (331 %) Changes in valuation allowance for deferred tax assets 31 % 116 % (1,077 %) Research and development super-deduction (2) (19 %) (85 %) 737 % Others (14 %) (3 %) 95 % 44 % 124 % (842 %) Note (1): The change in the regular 25% rate of income tax to preferential income tax rates that Changyou’s subsidiaries and VIEs were entitled to as Software Enterprises for 2021 and 2022 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table. Note (2): Under Chinese mainland regulations issued in September 2022 that were applicable from October 1, 2022 to December 31, 2022, additional research and development expenses were eligible for deduction from taxable income. Chinese Mainland Withholding Tax on Dividends Dividends distributed by foreign invested enterprises in the Chinese mainland to their immediate holding companies outside the Chinese mainland are subject to a 10% withholding tax. A lower withholding tax rate may be applied if there is a tax treaty between the Chinese mainland 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 an arrangement between the Chinese mainland and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income,” if such holding company is considered a non-Chinese Under Changyou’s dividend policy, all of Changyou’s Chinese mainland subsidiaries (not including the Changyou VIEs and their subsidiaries) will be able to distribute their cumulative available and undistributed earnings to their direct overseas parent companies in future periods. As of December 31, 2023, the Sohu Group had accrued deferred tax liabilities related to Changyou in the amount of The Sohu Group currently does not intend to have any of its Chinese mainland subsidiaries or the VIEs distribute any undistributed profits of such subsidiaries or VIEs to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries and VIEs for their Chinese mainland operations. As of December 31, 2023, the total amount of undistributed profits from the Chinese mainland subsidiaries and VIEs for which no withholding tax had been accrued was million, and the unrecognized tax liabilities were Chinese Mainland Value-Added Tax All of the Sohu Group’s revenues have been subject to VAT since May 1, 2016. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6% or 13 Deferred Tax Assets and Liabilities Significant components of the Group’s deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2022 2023 Deferred tax assets: Net operating loss from operations $ 321,230 $ 367,024 Accrued bonus and commissions 4,724 3,475 Intangible assets transfer 337 237 Others 9,938 9,472 Total deferred tax assets 336,229 380,208 Less: Valuation allowance (320,589 ) (371,532 ) Net deferred tax assets $ 15,640 $ 8,676 Deferred tax liabilities Withholding tax for dividend $ (239,013 ) $ (253,482 ) Others (8,800 ) (8,033 ) Total deferred tax liabilities $ (247,813 ) $ (261,515 ) Net deferred tax assets are recorded under other assets in the consolidated balance sheets. As of December 31, 2023, the Group had net operating losses from Chinese mainland entities of approximately $2.3 billion available to offset against future net profit for income tax purposes. The Group anticipates that it is more likely than not that these net operating losses may not be utilized based on its estimate of the operation performance of these Chinese mainland entities; therefore, $359.1 million in deferred tax assets generated from net operating losses were offset by a valuation allowance. The following table sets forth the movement of the valuation allowances for deferred tax assets for the years presented (in thousands): For the Year Ended December 31, 2021 2022 2023 Beginning balance $ 326,755 $ 289,097 $ 320,589 Provision for the year 45,787 69,087 60,554 Reversal for the year (91,019) (12,844) (4,134) Foreign currency translation adjustment 7,574 (24,751) (5,477) Ending balance $ 289,097 $ 320,589 $ 371,532 In 2023, $11.1 million of Chinese mainland net operating losses generated from previous years expired. Pursuant to a public announcement issued by the China State Administration of Taxation in August 2018, net operating losses of entities not qualified as HNTEs will expire between 2024 and 2028 if not utilized and those of entities qualified as HNTEs will expire in 2033. The reversal of valuation allowance was also due to the impact of changes in income tax rates upon preferential tax rates being obtained. Uncertain Tax Positions The following table summarizes the Group’s unrecognized tax benefit from January 1, 2021 to December 31, 2023 (in thousands): As of December 31, 2021 2022 2023 Beginning balance $ 188,760 $ 193,918 $ 200,228 Increases related to prior year tax positions 4,827 7,534 12,850 Foreign currency translation adjustment 331 (1,224 ) (219 ) Ending balance $ 193,918 $ 200,228 $ 212,859 The increases in 2023, 2022 and 2021 were mainly due to interest recognized in connection with an unrecognized tax benefit. The material jurisdictions in which the Group is subject to potential examination include the Chinese mainland and the United States. In general, the tax authorities in the Chinese mainland have up to five years and in certain cases up to 10 years, and the U.S. IRS has up to three years and in certain cases up to six years, to conduct examinations of the tax filings of the Group. The remaining period for the U.S. IRS to conduct an examination of the Group’s filing in connection with the unrecognized tax benefit in relation to the Toll Charge is expected to be approximately two years. All of these related tax years are open for the Sohu Group. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES Commitments The following table sets forth the Group’s commitments as of December 31, 2023 (in thousands): 2024 2025 2026 2027 2028 Thereafter Total Royalties and expenditures for licensed content of games $ 15,224 1,412 1,059 0 0 0 17,695 Purchase of content and services 8,029 290 23 0 0 0 8,342 Purchase of bandwidth 7,021 40 14 8 0 0 7,083 Operating lease obligations 3,512 1,083 981 0 0 0 5,576 Others 295 0 0 0 0 0 295 Total Payments Required $ 34,081 2,825 2,077 8 0 0 38,991 Litigation The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. The Sohu Group records a liability when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Sohu Group evaluates, on a regular basis, developments in litigation matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Management believes that the total liabilities to the Sohu Group that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Group’s business, results of operations, financial condition and cash flows. As of December 31, 2023, Sohu and Changyou had no significant litigation contingencies. Chinese Mainland Laws and Regulations The Chinese mainland 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, online game, and other services in the Chinese mainland. The economy of the Chinese mainland has historically been a planned economy subject to governmental plans and quotas and has, in certain aspects, been transitioning to a more market-oriented economy. 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. Regulatory authorities in the Chinese mainland may issue new laws or new interpretations of existing laws to regulate areas such as telecommunication, information, and media. The Sohu Group’s legal structure and scope of operations in the Chinese mainland could be subject to restrictions, which could result in limits on its ability to conduct business in the Chinese mainland. Certain risks related to Chinese mainland law that could affect the Sohu Group’s VIE structure are discussed in Note 17 - VIEs. Regulatory risks also encompass interpretation by tax authorities in the Chinese mainland of current tax law, including the applicability of certain preferential tax treatments. 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 the Chinese mainland, 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 the Chinese mainland may require certain supporting documentation in order to effect the remittance. |
VIEs
VIEs | 12 Months Ended |
Dec. 31, 2023 | |
VIES [Abstract] | |
VIEs | 17. VIEs Background Chinese mainland laws and regulations prohibit or restrict foreign ownership of companies that operate value-added telecommunication services, Internet publishing, online news information services, online audiovisual transmission, online games, and certain other business activities in the Chinese mainland 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 Chinese mainland through VIEs. The Sohu Group consolidates in its consolidated financial statements all of the VIEs of which the Group is the primary beneficiary for accounting purposes. VIEs Consolidated within the Sohu Group The Sohu Group adopted the guidance of ASC 810 for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. Management made evaluations of the relationships between the Sohu Group and the VIEs through which it conducts a significant portion of its operations and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluations, management also took into account the fact that, as a result of contractual arrangements with the VIEs that the Sohu Group consolidates, it controls the shareholders’ voting interests in those VIEs and the fact that any such VIE, if it has one or more wholly-owned subsidiaries that are also VIEs that the Sohu Group consolidates, holds and controls 100% of the shareholder’s voting interests in such subsidiary or subsidiaries even if any such subsidiary itself is not a party to any VIE contract with the Sohu Group. As a result of such evaluations, the management concluded that the Sohu Group holds a controlling financial interest in all of the VIEs that the Sohu Group consolidates because the Sohu Group has the power to direct the activities of such VIEs that most significantly affect their economic performances and the right to receive economic benefits that could be significant to such VIEs and that, therefore, the Sohu Group is the primary beneficiary of, and is required under ASC 810 to consolidate, all of such VIEs. All of the consolidated VIEs are incorporated and operated in the Chinese mainland, and the principal VIEs are directly or indirectly owned by Dr. Charles Zhang, the Sohu Group’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 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 and certain entities who are shareholders of the consolidated VIEs are required to transfer their ownership in these entities to the Group, if permitted by Chinese mainland 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 and certain entities who are shareholders of the consolidated VIEs have pledged their shares in the consolidated VIEs as collateral for the loans. As of December 31, 2023, the aggregate amount of these loans was $11.1 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 statutory reserves of the VIEs. As of December 31, 2023, the registered capital and statutory reserves of the consolidated VIEs totaled $32.6 million. As all of the consolidated VIEs are incorporated as limited liability companies under the Company Law of the People’s Republic of China (the “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 Chinese mainland 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 principal VIEs within the Sohu Group: Basic Information for Principal VIEs and Subsidiaries of Principal VIEs - High Century High Century was incorporated in 2001. As of December 31, 2023, Dr. Charles Zhang, the Group’s Chairman of the Board and Chief Executive Officer, and Wei Li, one of the Group’s employees, held - Heng Da Yi Tong Heng Da Yi Tong was incorporated in 2002. As of December 31, 2023, 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 December 31, 2023, High Century held a 100% interest in this entity. - Gamease Gamease was incorporated in 2007. As of December 31, 2023, High Century held a 100% interest in this entity. - Donglin Donglin was incorporated in 2010. As of December 31, 2023, Sohu Internet held a 100% interest in this entity. - Guanyou Gamespace Guanyou Gamespace was incorporated in 2010. As of December 31, 2023, Beijing Changyou Star Digital Technology Co., Ltd (“Changyou Star”) held a 100% interest in this entity. Dewen Chen, Changyou’s Chief Executive Officer, and Yaobin Wang, one of the Group’s employees, held - Shanghai ICE The Sohu Group began consolidating Shanghai ICE in 2010. As of December 31, 2023, Gamease held a 100% interest in this entity. - Tianjin Jinhu Tianjin Jinhu was incorporated in 2011. On December 12, 2022, the two individuals who were nominee shareholders of Tianjin Jinhu, both of whom are employees of the Sohu Group, transferred all of their equity interests in Tianjin Jinhu to High Century; all previous VIE contractual arrangements between Video Tianjin and Tianjin Jinhu and the two nominee shareholders were terminated; and High Century became Tianjin Jinhu’s direct 100% parent. As of December 31, 2023, High Century held a 100% interest in this entity. - Focus Interactive Focus Interactive was incorporated in 2014. As of December 31, 2023, Heng Da Yi Tong held a 100% of the equity interests in this entity. - Guangzhou Qianjun The Sohu Group began consolidating Guangzhou Qianjun in 2014. As of December 31, 2023, Tianjin Jinhu held a 100% interest in this entity. Financial Information The following financial information of the Sohu Group’s consolidated VIEs (including subsidiaries of these VIEs) is included in the accompanying consolidated financial statements (in thousands): As of December 31, 2022 2023 ASSETS: Cash and cash equivalents $ 21,732 $ 6,665 Restricted cash 1,838 1,412 Short-term investments 4,604 18,743 Accounts receivable, net 38,622 32,953 Prepaid and other current assets 13,934 5,514 Intra-Group receivables due from subsidiaries 594,099 502,353 Total current assets 674,829 567,640 Fixed assets, net 352 203 Other non-current 53,450 48,538 Total assets $ 728,631 $ 616,381 LIABILITIES: Accounts payable $ 10,909 $ 7,916 Accrued liabilities 37,946 28,525 Receipts in advance and deferred revenue 40,948 43,958 Other current liabilities 22,514 19,484 Intra-Group payables due to subsidiaries 402,546 283,083 Total current liabilities 514,863 382,966 Long-term tax liabilities 13,242 13,021 Deferred tax liabilities 549 0 Other non-current 1,436 1,445 Total liabilities $ 530,090 $ 397,432 Year Ended December 31, 2021 2022 2023 Revenues: Third-party revenues $ 664,823 $ 591,480 $ 477,202 Intra-Group revenues 21,488 27,914 13,283 Total revenues 686,311 619,394 490,485 Cost of revenues: Third-party cost of revenues 81,725 96,603 55,227 Intra-Group cost of revenues 136,221 104,883 86,435 Total cost of revenues 217,946 201,486 141,662 Operating expenses: Third-party operating expenses 72,126 72,911 44,059 Intra-Group operating expenses 366,762 329,226 282,812 Total operating expenses 438,888 402,137 326,871 Net income from continuing operations 35,805 2,691 23,879 Net loss from discontinued operations (47,924) 0 0 Year ended December 31, 2021 2022 2023 Cash flows from operating activities: Net cash provided by transactions with third parties $ 541,172 $ 448,936 $ 409,762 Net cash used in transactions with intra-Group entities (505,553 ) (445,660 ) (382,593 ) Net cash provided by continuing operating activities 35,619 3,276 27,169 Net cash used in discontinued operating activities (1,789 ) 0 0 Net cash provided by operating activities 33,830 3,276 27,169 Cash flows from investing activities: Net cash used in transactions with third parties (23,887 ) (5,421 ) (14,922 ) Net cash provided by/(used in) transactions with intra-Group entities (140,671 ) 72,497 73,894 Net cash provided by/(used in) continuing investing activities (164,558 ) 67,076 58,972 Net cash provided by discontinued investing activities 12,116 0 0 Net cash provided by/(used in) investing activities (152,442 ) 67,076 58,972 Cash flows from financing activities: Net cash provided by/(used in) transactions with intra-Group entities 111,888 (79,209 ) (101,611 ) Net cash provided by/(used in) continuing financing activities 111,888 (79,209 ) (101,611 ) Net cash used in discontinued financing activities (9,131 ) 0 0 Net cash provided by/(used in) financing activities 102,757 (79,209 ) (101,611 ) Summary of Significant Agreements Currently in Effect The following is a summary of the agreements between the Sohu Group’s principal Chinese mainland subsidiaries and principal consolidated VIEs and their nominee shareholders as of December 31, 2023 and as of the date of this report: Agreements between Subsidiaries, Consolidated VIEs and Nominee Shareholders Loan and share pledge agreement Loan and share pledge agreement Loan agreements and equity pledge agreements VIE-related VIE-related VIE-related Equity interest purchase right agreements Powers of attorney Business operation agreements Business Arrangements between Subsidiaries and Consolidated VIEs A significant portion of the Sohu Group’s operations are conducted through the VIEs that the Sohu Group consolidates, which generate a significant amount of the Sohu Group’s revenues. In order for the Sohu Group to be able to receive such revenues, and, if applicable, other assets, from the VIEs, it relies on payments made by the VIEs to the Sohu Group’s Chinese mainland subsidiaries pursuant to a series of service contracts between them in order for the VIEs to transfer such revenues or other assets to the Sohu Group. The following is a summary of the material service contracts currently in effect between the Sohu Group’s Chinese mainland subsidiaries and certain of the VIEs that the Sohu Group consolidates: Exclusive technology consulting and service agreement Technology service agreement Technology support and utilization agreements Services and maintenance agreements 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. The following is a summary of agreements among Video Tianjin, Tianjin Jinhu and Tianjin Jinhu’s nominee shareholders. All of these agreements were terminated as of December 12, 2022. After December 12, 2022, Tianjin Jinhu became a wholly-owned subsidiary of High Century. Loan agreements and equity pledge agreements Exclusive equity interest purchase right agreements Business operation agreement Powers of Attorney Exclusive technology consulting and service agreement VIE-Related It is possible that the Sohu Group’s operation of certain of its operations and businesses through VIEs could be found by authorities in the Chinese mainland to be in violation of laws and regulations of the Chinese mainland prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If a finding were made by authorities in the Chinese mainland that the Sohu Group’s operation of certain of its operations and businesses through VIEs is prohibited, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including but not limited to levying fines, confiscating the Sohu Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Sohu Group to restructure its ownership structure or operations, or requiring the Sohu Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Sohu Group’s business operations, and have a severe adverse impact on the Sohu Group’s cash flows, financial position, and operating performance. In addition, it is possible that the contracts among the Company’s subsidiaries, the VIEs that the Sohu Group consolidates and the shareholders of such VIEs would not be enforceable in the Chinese mainland if regulatory authorities or courts in the Chinese mainland were to find that such contracts contravene law and regulations of the Chinese mainland or are otherwise not enforceable for public policy reasons. As of the date of this report, the validity and enforceability of the contracts among the Company’s subsidiaries, the VIEs that the Sohu Group consolidates and the shareholders of such VIEs and, to the knowledge of the Company, of any similar contracts entered into by other Chinese mainland-based companies, have never been considered or determined by a Chinese mainland court. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Sohu Group would not be able to exert effective control over the affected VIEs and the financial results of the VIEs would not accrue to the Sohu Group’s benefit. Consequently, such VIEs’ results of operations, assets and liabilities would not be included in the Sohu Group’s consolidated financial statements. If such were the case, the Sohu Group’s cash flows, financial position and operating performance would be severely adversely affected. The Sohu Group’s operations and businesses rely on the operations and businesses of the VIEs that it consolidates, 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 Sohu Group. Intangible assets acquired through business acquisitions mainly consist of customer relationships, non-compete |
Sohu.com Limited Shareholders'
Sohu.com Limited Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
SOHU.COM LIMITED SHAREHOLDERS' EQUITY [Abstract] | |
Sohu.com Limited Shareholders' Equity | 18. SOHU.COM LIMITED SHAREHOLDERS’ EQUITY Summary of the Company’s outstanding shares (in thousands): Number of Outstanding Shares As of December 31, 2021 2022 2023 Balance, beginning of year 39,306 38,221 33,737 Issuances: 44 25 7 Repurchases: (1,129 ) (4,509 ) (696 ) Balance, end of year 38,221 33,737 33,048 Treasury Stock Treasury stock consists of the Company’s ordinary shares, including ordinary shares represented by ADSs, repurchased by the Company or that it is obligated to repurchase as of the reporting date. Ordinary shares included in treasury stock are no longer deemed to be outstanding. Treasury stock is accounted for under the cost method. On November 13, 2021, the Sohu Board authorized a share repurchase program of up to $100 million of outstanding ADSs over a On November 11, 2023, the Sohu Board authorized a share repurchase program of up to $80 million of outstanding ADSs over a 24-month , and on March 2, 2024, the Sohu Board authorized an increase in the size of the share repurchase program from up to $80 million to up to $150 million of outstanding ADSs. million. Share Incentive Plans Sohu (excluding Fox Video) and Changyou have incentive plans, and before January 4, 2022 Fox Video had an incentive plan, for the granting of share-based awards, including options and restricted share units, to their directors, management and other key employees. 1) Sohu.com Limited Share-based Awards Sohu’s 2018 Share Incentive Plan On July 2, 2010, Sohu.com Inc.’s shareholders adopted the 2010 Stock Incentive Plan, which provides for the issuance of up to 1,500,000 shares of Sohu.com Inc.’s common stock, including stock issued pursuant to the vesting and settlement of restricted stock units and pursuant to the exercise of stock options. The maximum term of any share-based award granted under the Sohu 2010 Stock Incentive Plan is 10 years from the grant date. On April 2, 2018, Sohu.com Limited adopted the Sohu 2018 Share Incentive Plan, which provides for the issuance of up 1,148,565 ordinary shares of Sohu.com Limited. The Sohu 2018 Share Incentive Plan will expire in April 2028 Upon the dissolution of Sohu.com Inc. on May 31, 2018, Sohu.com Limited assumed all then existing obligations of Sohu.com Inc. with respect to equity incentive awards that had been granted under the Sohu 2010 Stock Incentive Plan and then remained outstanding, and such awards were converted into the right to receive upon exercise or settlement Sohu.com Limited’s ordinary shares under the Sohu 2018 Share Incentive Plan rather than shares of the common stock of Sohu.com Inc., subject to the other terms of such outstanding awards. As of December 31, 2023, 217,092 shares were available for grant under the Sohu 2018 Share Incentive Plan. Summary of Share Option Activity In February 2015, May 2016, September 2017 and November 2017, the Sohu Board approved contractual grants to members of the Company’s management and key employees of options for the purchase of an aggregate of 1,068,000, 13,000, 32,000 and 6,000 shares of common stock of Sohu.com Inc., respectively, under the Sohu 2010 Stock Incentive Plan, with nominal exercise prices of $0.001, all of which were converted, on May 31, 2018, into the right to receive upon exercise Sohu.com Limited’s ordinary shares under the Sohu 2018 Share Incentive Plan. In February 2019, July 2019, September 2020, and September 2021, the Sohu Board approved contractual grants to members of the Company’s management and key employees of options for the purchase of an aggregate of 20,000, 477,500, 34,000, and 5,000 ordinary shares of Sohu.com Limited, respectively, under the Sohu 2018 Share Incentive Plan, with nominal exercise prices of $0.001. These share options vest and become exercisable in four equal installments over a period of four years, with each installment vesting upon the satisfaction of a service period requirement and certain subjective performance targets. These share options are substantially similar to restricted share units except for the nominal exercise price, which would be zero for restricted share units. Under ASC 718-10-25 ASC 718-10-55 re-measured As of December 31, 2023, 1,142,576 of these options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets was reached between the Company and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense for these granted options has been adjusted and fixed based on their aggregate fair values, at their respective grant dates, of $31.5 million. A summary of option activity under the Sohu 2018 Share Incentive Plan as of and for the year ended December 31, 2023 is presented below: Weighted Number Weighted Average Aggregate Of Average Remaining Intrinsic Shares Exercise Contractual Value (1) Options (in thousands) Price Life (Years) (in thousands) Outstanding as of January 1, 2023 354 $ 0.001 $ Granted 107 0.001 Exercised (7 ) 0.001 Forfeited or expired 0 Outstanding as of December 31, 2023 454 0.001 4.60 4,503 Vested as of December 31, 2023 454 0.001 4.60 4,503 Exercisable as of December 31, 2023 454 0.001 4.60 4,503 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohu’s closing ADS price of $9.93 on December 31, 2023 and the nominal exercise price of the options. For the years ended December 31, 2023, 2022 and 2021, total share-based compensation expense recognized for these options was $0.1 million, $0.7 million and $1.8 million, respectively. For the years ended December 31, 2023, 2022 and 2021, the total fair values of these Sohu options vested on their respective vesting dates were $1.2 million, $1.8 million and $2.1 million, respectively. For the years ended December 31, 2023, 2022 and 2021, the total intrinsic value of options exercised was $0.1 million, $0.5 million and $0.8 million, respectively. 2) Changyou.com Limited Share-based Awards Changyou 2014 Share Incentive Plan On June 27, 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 certain members of its management and key employees. On November 2, 2014, Changyou’s board of directors (the “Changyou Board”) approved an increase in the number of Class A ordinary shares reserved under the Changyou 2014 Share Incentive Plan from June 2024 i) Summary of Share Option Activity On November 2, 2014, the Changyou Board approved the contractual grant of an aggregate of 2,416,000 Class A restricted share units to certain members of its management and certain other employees. On February 16, 2015, the Changyou Board approved the conversion of 2,400,000 of these Class A restricted share units into options for the purchase of Class A ordinary shares at an exercise price of $0.01. On June 1, 2015, the Changyou Board approved the contractual grant of options for the purchase of an aggregate of 1,998,000 Class A ordinary shares to certain members of its management and certain other employees at an exercise price of $0.01. On July 28, 2016, the Changyou Board approved the contractual grant of options for the purchase of an aggregate of 100,000 Class A ordinary shares to certain member of its management at an exercise price of $0.01. On August 26, 2019, the Changyou Board approved the grant, effective as of October 1, 2019, to a member of Changyou’s management and a Changyou employee of options for the purchase of an aggregate of 3,023,000 Class A ordinary shares at an exercise price of $0.01 per Class A ordinary share. These Changyou share options vest in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and the achievement of certain subjective performance targets. These Changyou share options are substantially similar to restricted share units except for the nominal exercise price, which would be zero for restricted share units. After the completion of the Changyou Merger, the Sohu Board approved the Changyou Plans’ Modification, pursuant to which, among other things, a portion of the share options previously granted under the Changyou 2014 Share Incentive Plan that became vested after the completion of the Changyou Merger were settled by Changyou at a fixed price of $5.39 per Changyou Class A ordinary share, which equals the Changyou Merger consideration of $5.40 per Changyou Class A ordinary share minus the per-share re-measurement Under ASC 718-10-25 ASC 718-10-55 re-measured Prior to the completion of Changyou Merger, to determine the fair value of these Changyou share options, the public market price of the underlying Changyou Class A ordinary shares at each reporting date was used and a binomial valuation model was applied. As of December 31, 2023, 5,884,464 of these Changyou share options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense of $3.5 million for these granted share options was adjusted and fixed based on the aggregate amounts of the fair values of these granted share options at their respective grant dates for periods before the Changyou Plans’ Modification, and at a price of $5.39 per Changyou Class A ordinary share for periods after the Changyou Plans’ Modification. For the years ended December 31, 2023, 2022 and 2021, total share-based compensation expense recognized for share options under the Changyou 2014 Share Incentive Plan was $0.1 million, $2.0 million and negative $3.9 million, respectively. For the years ended December 31, 2023, 2022 and 2021, the total fair values of these Changyou share options vested on their respective vesting dates were $3.5 million, $4.1 million and $4.1 million, respectively. Changyou 2019 Share Incentive Plan On August 3, 2019, Changyou adopted and reserved for issuance 3,000,000 Class A ordinary shares of Changyou under a new share incentive plan (the “Changyou 2019 Share Incentive Plan”). On August 26, 2019, the Changyou Board approved the grant, effective as of October 1, 2019, to certain members of Changyou’s management and certain other employees of options for the purchase of an aggregate of 1,909,000 Class A ordinary shares at an exercise price of $0.01. On February 2, 2021, the Changyou Board approved the grant, effective for vesting commencement purposes as of February 2, 2021, to certain members of Changyou’s management and certain other employees of options for the purchase of an aggregate of 600,000 Class A ordinary shares at an exercise price of $0.01. These Changyou share options vest in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and the achievement of certain subjective performance targets. After the completion of the Changyou Merger, the Sohu Board approved the Changyou Plans’ Modification, pursuant to which, among other things, none of the share options granted under the Changyou 2019 Share Incentive Plan will be exercisable, but can only be repurchased by Changyou following vesting at a fixed price of $5.39 per Changyou Class A ordinary share underlying such vested share options upon termination of the option holders’ employment or upon approval of the Chairman of the Sohu Board. As a result of the Changyou Plans’ Modification, share-based compensation expense will be accrued over the service period based on a fixed price of $5.39 per Changyou Class A ordinary share. No subsequent fair value re-measurement Under ASC 718-10-25 ASC 718-10-55 re-measured Prior to the completion of the Changyou Merger, to determine the fair value of Changyou share options, the public market price of the underlying Changyou Class A ordinary shares at each reporting date was used and a binomial valuation model was applied. As of December 31, 2023, 2,136,040 of the share options granted under the Changyou 2019 Share Incentive Plan had vested. The cumulative share-based compensation expense of $3.0 million for the granted share options was adjusted and fixed based on a price of $5.39 per Changyou Class A ordinary share after the Changyou Plans’ Modification. For the years ended December 31, 2023, 2022 and 2021, total share-based compensation expense recognized for these share options under the Changyou 2019 Share Incentive Plan was $0.5 million, $2.2 million and $3.9 million, respectively. For the years ended December 31, 2023, 2022 and 2021, the total value of these Changyou share options vested on their respective vesting dates was $3.0 million, $3.4 million and $2.6 million, respectively. 3) Fox Video Share-based Awards On January 4, 2012, Fox Video, a Cayman Islands company that was wholly owned by Sohu.com Limited and before June 16, 2022 was the Offshore holding entity of the Sohu Group’s online video business, adopted the Fox Video Share Incentive Plan, which provided for the issuance of up to 25,000,000 ordinary shares of Fox Video (representing approximately 10% of the outstanding Fox Video ordinary shares on a fully-diluted basis) to management and key employees of the online video business and to Sohu management. The maximum term of any share-based award granted under the Fox Video Share Incentive Plan was ten years from the grant date. The Fox Video Share Incentive Plan expired on On June 16, 2022, Fox Video (HK) Limited, a wholly-owned subsidiary of Fox Video, transferred all of its equity interests in Video Tianjin to AmazGame, and Fox Video was dissolved on March 9, 2023. As a result, Fox Video is no longer the Offshore holding entity of the Sohu Group’s online video business and there are no longer any options for the purchase of Fox Video ordinary shares under the Fox Video Share Incentive Plan. As of December 31, 2022, grants of options for the purchase of 16,368,200 ordinary shares of Fox Video had been contractually made and were subject to vesting in four equal installments, with each installment vesting upon a service period requirement, as well as specified performance targets for the corresponding period, being met. As of December 31, 2022, options for the purchase of 4,972,800 Fox Video ordinary shares had vested. For purposes of ASC 718-10-25, 718-10-55, re-measured For the years ended December 31, 2022 and 2021, total share-based compensation expense recognized for vested Fox Video options under the Fox Video Share Incentive Plan was nil and negative $1.0 million, respectively. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2023 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling Interest | 19. NONCONTROLLING INTEREST Prior to the completion of the Tencent/Sohu Sogou Share Purchase, the noncontrolling interests in the Sohu Group’s consolidated financial statements consisted of noncontrolling interests for Sogou and noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, no noncontrolling interests are recognized except for noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. Noncontrolling Interest in the Consolidated Balance Sheets Sohu holds 100% of the combined total of Changyou’s outstanding ordinary shares, and the noncontrolling interests recognized in the Sohu Group’s consolidated balance sheets reflect economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. Noncontrolling interest of Changyou of $0.3 million and $1.3 million was recognized in the Sohu Group’s consolidated balance sheets as of December 31, 2023 and 2022, respectively. Noncontrolling Interest in the Consolidated Statements of Comprehensive Income/(Loss) For the years ended December 31, 2023, 2022 and 2021, the Sohu Group had net loss of $0.3 million, net income of $2,000 and net income of $6.4 million, respectively, attributable to the noncontrolling interest in the consolidated statements of comprehensive income/(loss). Year Ended December 31, 2021 2022 2023 Changyou $ (3 ) $ 2 $ (265 ) Sogou 6,451 0 0 Total $ 6,448 $ 2 $ (265 ) Noncontrolling Interest of Changyou For the year s Noncontrolling Interest of Sogou (Discontinued) For the year ended December 31, 2021, net income of $6.5 million, attributable to the noncontrolling interest of Sogou that existed prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, was recognized in the Sohu Group’s consolidated statements of comprehensive income/(loss), representing Sogou’s net income/(loss) attributable to shareholders other than Sohu. |
Net Income_(Loss) per Share
Net Income/(Loss) per Share | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME/(LOSS) PER SHARE [Abstract] | |
Net Income/(Loss) per Share | 20. NET INCOME/(LOSS) PER SHARE Basic net income/(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income/(loss) per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary 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. Additionally, for purposes of calculating the numerator of diluted net income/(loss) per share, the net income/(loss) attributable to Sohu is calculated as discussed below. The adjustment will not be made if there is an anti-dilutive effect. Changyou’s Net Income/(Loss) Attributable to Sohu As a result of the completion of the Changyou Merger, Sohu holds 100% of the combined total of Changyou’s outstanding ordinary shares, so Changyou’s net income/(loss) is wholly attributable to Sohu. After the Changyou Plans’ Modification, all of Changyou’s share-based awards became obligation-based awards. Accordingly, all of those Changyou awards are excluded from the calculation of Sohu’s diluted net income/(loss) per share. Changyou’s net income/(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income/(loss) per share. There have been no dilutive effects resulting from Changyou’s existing unvested share options. Sogou’s Net Income/(Loss) Attributable to Sohu (Discontinued) Prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, Sogou’s net income/(loss) attributable to Sohu was determined using the percentage that the weighted average number of Sogou shares held by Sohu represented of the weighted average number of Sogou 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 Sogou, which is used for the calculation of basic net income per share. Sogou’s net income/(loss) attributable to Sohu is reflected as discontinued operations in the Sohu Group’s consolidated statements of comprehensive income. In the calculation of Sohu’s diluted net income/(loss) per share, assuming a dilutive effect, the percentage of Sohu’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 Sogou share options where the performance targets had been achieved, as well as vested but unexercised Sogou 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 Sohu’s diluted income/(loss) per share. As a result, Sogou’s net income/(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income/(loss) per share. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, the Sohu Group no longer has any ownership interest in Sogou, and Sogou is not included in the Sohu Group’s consolidated financial statements. The following table presents the calculation of the Sohu Group’s basic and diluted net loss per share (in thousands, except per share data). Year Ended December 31, 2021 2022 2023 Numerator: Net income/(loss) from continuing operations attributable to Sohu.com Limited, basic $ 69,274 $ (17,343 ) $ (65,805 ) Net income from discontinued operations attributable to Sohu.com Limited, basic 858,451 0 35,426 Net income/(loss) attributable to Sohu.com Limited, basic 927,725 (17,343 ) (30,379 ) Effect of dilutive securities: Incremental dilution from Sogou (20 ) 0 0 Net income/(loss) from continuing operations attributable to Sohu.com Limited, diluted 69,274 (17,343 ) (65,805 ) Net income from discontinued operations attributable to Sohu.com Limited, diluted 858,431 0 35,426 Net income/(loss) attributable to Sohu.com Limited, diluted $ 927,705 $ (17,343 ) $ (30,379 ) Denominator: Weighted average basic ordinary shares outstanding 39,501 34,945 34,109 Weighted average diluted ordinary shares outstanding $ 39,501 $ 34,945 $ 34,109 Basic net income/(loss) per share attributable to Sohu.com Limited Continuing operations $ 1.75 $ (0.50 ) $ (1.93 ) Discontinued operations 21.74 0 1.04 Net income/(loss) per share 23.49 (0.50 ) (0.89 ) Diluted net income/(loss) per share attributable to Sohu.com Limited Continuing operations $ 1.75 $ (0.50 ) $ (1.93 ) Discontinued operations 21.74 0 1.04 Net income/(loss) per share 23.49 (0.50 ) (0.89 ) |
Chinese Mainland Contribution P
Chinese Mainland Contribution Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Chinese Mainland Contribution Plan | 21. CHINESE MAINLAND CONTRIBUTION PLAN The Sohu Group’s subsidiaries and consolidated VIEs in the Chinese mainland participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese mainland labor regulations require the Group’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Group’s Chinese mainland-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the years ended December 31, 2023, 2022 and 2021, the Group’s Chinese mainland-based subsidiaries and consolidated VIEs contributed a total of $86.7 million, $87.6 million and $83.1 million, respectively, to these funds. |
Profit Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2023 | |
Profit Appropriation [Abstract] | |
Profit Appropriation | 22. PROFIT APPROPRIATION The Sohu Group’s Chinese mainland-based subsidiaries and th e non-distributable On March 15, 2019, the Standing Committee of the National People’s Congress of China issued the Law of the People’s Republic of China on Foreign Investment Law of the People’s Republic of China on Foreign Investment Enterprises Implementing Regulations of the Foreign Investment Law., Under the China Foreign Investment Enterprises Laws and its supplemental regulations those of the Group’s Chinese mainland-based subsidiaries that are considered under Chinese mainland law to be WFOEs are required to make appropriations from their after-tax “after-tax-profit non-distributable after-tax-profit after-tax-profit non-distributable Pursuant to the Company Law, those of the Group’s Chinese mainland-based subsidiaries that are considered under Chinese mainland law to be domestically funded enterprises, as well as the VIEs, are required to make appropriations from their after-tax-profit non-distributable after-tax-profit Upon certain regulatory approvals and subject to certain limitations, the general reserve fund and the statutory surplus fund can be used to offset prior year losses, if any, and can be converted into paid-in capital of the applicable entity. For the years ended December 31, 2023, 2022 and 2021, the total amount of profits contributed to these funds by the Group was $0.3 million, $0.1 million and $0.1 million, respectively. As of December 31, 2023 and 2022, the cumulative amount of profits contributed to these funds by the Group was $57.6 million and $57.3 million, respectively. As a result of these and other restrictions under laws and regulations of the Chinese mainland, the Group’s Chinese mainland-based subsidiaries and consolidated VIEs are restricted in their ability to transfer a portion of their net assets in the form of non-distributable |
Concentration Risks
Concentration Risks | 12 Months Ended |
Dec. 31, 2023 | |
CONCENTRATION RISKS [Abstract] | |
Concentration Risks | 23. CONCENTRATION RISKS The Sohu Group’s operations are substantially conducted in the Chinese mainland and therefore are subject to Chinese mainland-related political, economic and legal risks. In addition to these risks, the Sohu Group may also have the following concentration risks. Operation Risk For the years ended December 31, 2023, 2022 and 2021, there were no revenues from customers that individually represent greater than 10% of the total online advertising revenues. For the year ended December 31, 2023, revenues from TLBB PC were $321.4 million, accounting for approximately 67% of Changyou’s online game revenues, approximately 66% of Changyou’s total revenues and approximately 53% of the Sohu Group’s total revenues. For the year ended December 31, 2023, revenues from Legacy TLBB Mobile were $55.4 million, accounting for approximately 12% of Changyou’s online game revenues, approximately 11% of Changyou’s total revenues, and approximately 9% of the Sohu Group’s total revenues. Financial instruments that potentially subject the Sohu Group to concentration risks consist primarily of cash and cash equivalents, short-term investments and long-term time deposits. Cash and cash equivalents and short-term investments in Sohu Group are mainly denominated in RMB and in U.S. dollars. Long-term time deposits are denominated in RMB. The Group may experience economic losses and negative impacts on earnings and equity as a result of fluctuations in the exchange rate between the U.S. dollar and the RMB. Moreover, the Chinese mainland imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of the Chinese mainland. The Group may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. Credit Risk As of December 31, 2023 and 2022, approximately 60% and 62%, respectively, of the Sohu Group’s cash and cash equivalents, short-term investments, and long-term time deposits were held in 14 financial institutions in the Chinese mainland. The remaining cash and cash equivalents, short-term investments and long-term time deposits were held primarily in financial institutions in Hong Kong and Macao. The Sohu Group holds its cash and bank deposits at financial institutions that are among the largest and most respected in the Chinese mainland and at international financial institutions, with high ratings from internationally-recognized rating agencies. The management chooses these institutions based on their reputations and track records for stability and reported large cash reserves. As a further means of managing its credit risk, the Sohu Group holds its cash and bank deposits in a number of different financial institutions. As of December 31, 2023 and 2022, the Sohu Group held its cash and bank deposits in different financial institutions and held no more than approximately 30% and 34%, respectively, of its total cash at any single institution. Under Chinese mainland law, it is generally required that a commercial bank in the Chinese mainland that holds third party cash deposits protect the depositors’ rights over and interests in their deposited money; banks in the Chinese mainland are subject to a series of risk control regulatory standards; and bank regulatory authorities in the Chinese mainland are empowered to take over the operation and management of any Chinese mainland bank that faces a material credit crisis. For the credit risk related to accounts receivable, the Sohu Group performs ongoing credit |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
RESTRICTED NET ASSETS [Abstract] | |
Restricted Net Assets | 24. RESTRICTED NET ASSETS Relevant laws and regulations of the Chinese mainland permit payment of dividends by Chinese mainland-based operating entities only out of their retained earnings, if any, as determined in accordance with Chinese mainland accounting standards and regulations. In addition, a Chinese mainland-based operating entity is required to annually appropriate 10% of net after-tax |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Accounting Standards | Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. |
Use of Estimates | Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going |
Basis of Consolidation and Recognition of Noncontrolling Interest | Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of the Company and its subsidiaries and consolidated VIEs. All intra-Group transactions are eliminated except for revenues and expenses arising from intra-Group transactions that are considered to continue after the disposal of the discontinued operations. In the consolidated statements of comprehensive income, results from discontinued operations are reported separately from income and expenses from continuing operations and prior periods are presented on a comparative basis. VIE Consolidation Under ASC 810, if an entity has (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the right to receive economic benefits from the VIE that could be significant to the VIE, then such entity will be considered as holding a controlling financial interest in the VIE, which will make such entity a primary beneficiary of, and will require such entity to consolidate, the VIE. The VIEs through which the Sohu Group conducts a substantial portion of its business operations are wholly owned, directly or indirectly, by certain employees of the Sohu Group as nominee shareholders. For those VIEs with which the Sohu Group has contractual arrangements and with their nominee shareholders, management made evaluations of the relationships between the Sohu Group and such VIEs and the economic benefit flow of such contractual arrangements with such VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Sohu Group controls 100% of the nominee shareholders’ voting interests in such VIEs and the fact that any such VIE, if it has one or more wholly-owned subsidiaries that are also VIEs that the Sohu Group consolidates, holds and controls 100% of the shareholder’s voting interests in such subsidiary or subsidiaries even if any such subsidiary itself is not a party to any VIE contract with the Sohu Group. As a result of such evaluation, management concluded that the Sohu Group holds a controlling financial interest in all of the VIEs that it consolidates because the Sohu Group has the power to direct the activities of such VIEs that most significantly affect their economic performances and the right to receive economic benefits that could be significant to such VIEs and that, therefore, the Sohu Group is the primary beneficiary of, and is required under ASC 810 to consolidate, all of such VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Prior to the completion of the Tencent/Sohu Sogou Share Purchase, the noncontrolling interests in the Sohu Group’s consolidated financial statements consisted of noncontrolling interests for Sogou and noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, no noncontrolling interests are recognized except for noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. Noncontrolling Interest for Changyou The Company beneficially holds and controls 100% of the combined total of Changyou’s outstanding ordinary shares and 100% of the total voting power in Changyou. The Company consolidates Changyou in its consolidated financial statements, and no noncontrolling interests are recognized except for noncontrolling interests reflecting economic interests in Changyou’s subsidiaries held by shareholders other than Changyou. Noncontrolling Interest for Sogou Prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, as Sogou’s controlling shareholder, the Company consolidated Sogou in its consolidated financial statements as discontinued operations, and recognized noncontrolling interest reflecting economic interests in Sogou held by Sogou noncontrolling shareholders. Sogou’s net income/(loss) attributable to the Sogou noncontrolling shareholders is recorded as net income/(loss) from discontinued operations attributable to the noncontrolling shareholders in the Company’s consolidated statements of comprehensive income, based on the noncontrolling shareholders’ share of the economic interest in Sogou. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity and adjustment for share-based compensation expense in relation to share-based awards that were unvested and vested but not yet settled and adjustment for changes in the Company’s ownership in Sogou, were recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, the Company no longer has any beneficial ownership interest in Sogou. Discontinued operations Discontinued operations are reported when a component, or a group of components, of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) has a major impact on an entity’s financial results and operations. In the statement of financial position, the assets and liabilities of the discontinued operation are presented separately in the asset and liability sections, respectively, of the statement of financial position and prior periods are presented on a comparative basis. In the consolidated statements of comprehensive income, results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in the consolidated statements of cash flows. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-Group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. |
Revenue Recognition | Revenue Recognition Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The recognition of revenues involves certain management judgments, including the estimation of the fair value of an advertising-for-advertising licensed-out Starting in 2023, Focus, which used to conduct the Group’s online real estate services, was integrated into Sohu Media Portal. To provide a consistent basis of comparison, retrospective adjustments have been made to brand advertising revenues from Sohu Media Portal for the years ended December 31, 2021 and 2022, respectively, to include brand advertising revenues from Focus, which were presented separately for those years. The following table presents the Group’s revenues disaggregated by products and services: Year Ended December 31, 2021 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 97,421 0 97,421 Sohu Video 26,803 0 26,803 17173.com Website 0 10,743 10,743 Online games: PC games 0 469,332 469,332 Mobile games 0 168,893 168,893 Others 62,382 2 62,384 Total $ 186,606 648,970 835,576 Year Ended December 31, 2022 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 76,751 0 76,751 Sohu Video 19,620 0 19,620 17173.com Website 0 6,862 6,862 Online games: PC games 0 425,744 425,744 Mobile games 0 159,680 159,680 Others 45,215 0 45,215 Total $ 141,586 592,286 733,872 Year Ended December 31, 2023 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 66,103 0 66,103 Sohu Video 17,572 0 17,572 17173.com Website 0 5,014 5,014 Online games: PC games 0 368,721 368,721 Mobile games 0 110,976 110,976 Others 32,286 0 32,286 Total $ 115,961 484,711 600,672 Brand Advertising Revenues Brand advertising revenues are generated from brand advertising services. Through mobile devices and PCs, the Group provides advertisement placements to advertisers on different Internet platforms and in different formats. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates the annual revenue volume from each customer with reference to its historical performance. The Group recognizes revenue for the amount of fees it receives from its customers, after deducting sales rebates and net of value-added tax (“VAT”). Brand Advertising Revenues Revenue Recognition of Multiple Performance Obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines the standalone selling price of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where a standalone selling price is not directly observable, the Group generally estimates the selling price based on the prices at which performance obligations of a similar nature and geography are charged to customers. Most of such contracts have all performance obligations completed within the same quarter. Pricing Model The Group has three main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model and the Cost Per Click (“CPC”) model. (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Given that advertisers benefit from displayed advertisements evenly over the period the advertisements are displayed, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. (ii) CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are fixed in accordance with the Group’s pricing practices for similar advertisers, the Group recognizes revenue based on the fixed unit prices and the number of qualifying displays upon their occurrence, provided all revenue recognition criteria have been met. (iii) CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser. The unit price for each click is auction-based, and the Group charges advertisers on a per-click Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game Changyou is the principal of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile App stores, but net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from Changyou’s self-operated PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Changyou’s self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games Self-operated Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile App stores. The mobile App stores in turn pay Changyou proceeds after deducting their share of pre-agreed Changyou’s self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly-developed mobile games, Changyou remits a pre-agreed Licensed Out Mobile Games Changyou also authorizes third parties to operate its mobile games. Licensed out games include mobile games developed in house, such as Changyou’s mobile games Legacy TLBB Mobile and New TLBB Mobile, and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from the third-party licensee operators. Changyou receives additional up-front Other Revenues Other revenues consist primarily of revenues from paid subscription services, revenue sharing from other platforms, and interactive broadcasting services. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. The allowance for credit losses is estimated based upon the Group’s assessment of various factors, including past collection experience and consideration of current and future economic conditions and other factors that may affect the Group’s customers’ ability to pay. Contract assets as of December 31, 2023 were not material. The allowance for credit losses was $12.1 million and $13.9 million, respectively, as of December 31, 2023 and 2022. Contract liabilities are presented as receipts in advance and deferred revenue on the consolidated balance sheets of the Group. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from game players in the online game business and from advertisers in the brand advertising business. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the receipts in advance and deferred revenue balance at the beginning of the period was $43.5 million for the year ended December 31, 2023. There was no significant change in the contract assets and contract liability balances during 2023. Revenue recognized in 2023 from performance obligations related to prior years was not material. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. (iii) The Group applied the portfolio approach in determining the commencement date of consumption and the estimated lives of virtual items for the recognition of games revenue, given that the effect of applying a portfolio approach to a group game players’ behaviors would not differ materially from considering each one of them individually. (iv) The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Cost of Revenues | Cost of Revenues Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of salary and benefits expenses, content and license costs, and costs incurred for related content marketing campaigns. For self-developed video content, production costs incurred in excess of the amount of revenue contracted for are expensed as incurred. Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expenses, bandwidth service costs, and content and license costs. Cost of Other Revenues Cost of other revenues mainly consists of content and license costs related to paid subscription services, revenue-sharing payments related to interactive broadcasting services, and revenue-sharing payments related to payment channels. |
Product Development Expenses | Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, content and license costs, depreciation and amortization expenses, bandwidth service expenses, and professional fees. These expenses are incurred for the enhancement and maintenance of the Sohu Group’s Internet platforms as well as for its products and services. The development costs of online games are expensed as incurred, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. |
Sales and Marketing Expenses | Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expenses, travel and entertainment expenses, professional fees, and facilities expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the Group’s products and services. Advertising and promotional expenses are expensed as incurred. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, professional fees, facilities expenses, travel and entertainment expenses, and office expenses. |
Share-based Compensation Expense | Share-based Compensation Expense Sohu (excluding Fox Video Limited (“Fox Video,” which was referred to in the Company’s previous annual reports on Form 20-F For share-based awards for which a grant date has occurred, 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 share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured After the completion of the Changyou Merger, the board of directors of the Company (the “Sohu Board”) approved a modification plan for the granted but unvested share options under the Changyou 2014 Share Incentive Plan and the Changyou 2019 Share Incentive Plan (the “Changyou Plans’ Modification”). After the Changyou Plans’ Modification, liability is accrued over the service period based on a fixed price of $5.39 per Changyou Class A ordinary share, which equals the Changyou Merger consideration of $5.40 per Changyou Class A ordinary share minus the per-share re-measurement Sohu (excluding Fox Video) and Changyou Share-based Awards Sohu (excluding Fox Video) Share-based Awards In determining the fair value of share options granted by Sohu (excluding Fox Video) as share-based awards, the public market price of the underlying shares at each reporting date was used, and a binomial valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Upon the dissolution of Sohu.com Inc. on May 31, 2018, Sohu.com Limited assumed all then existing obligations of Sohu.com Inc. with respect to equity incentive awards that had been granted under Sohu.com Inc.’s Amended and Restated 2010 Stock Incentive Plan (the “Sohu 2010 Stock Incentive Plan”) and remained outstanding, and such awards were converted into the right to receive upon exercise or settlement Sohu.com Limited’s ordinary shares under the Sohu.com Limited 2018 Share Incentive Plan (the “Sohu 2018 Share Incentive Plan”) rather than shares of the common stock of Sohu.com Inc., subject to the other terms of such outstanding awards. Options for the purchase of Sohu.com Limited’s ordinary shares, including options converted from those contractually granted under the Sohu 2010 Stock Incentive Plan, are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured Changyou Share-based Awards Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan and the Changyou 2019 Share Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured After the Changyou Plans’ Modification, share-based compensation expense is accrued over the service period based on the fixed price of re-measurement As of December 31, 2023, 8,020,504 of these Changyou share options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. Compensation Expense Recognition For options and restricted share units granted with respect to Sohu (excluding Fox Video) shares and Changyou shares, compensation expense is recognized on a graded vesting method upon the requisite service period and certain subjective performance targets being met. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and no compensation expense is recorded for the number of awards so estimated. Fox Video Share-based Awards On January 4, 2012, Fox Video, a Cayman Islands company that was wholly owned by Sohu.com Limited and before June 16, 2022 was the Offshore holding entity of the Sohu Group’s online video business, adopted a 2011 Share Incentive Plan (the “Fox Video Share Incentive Plan,” which was referred to in the Company’s previous annual reports on Form 20-F |
Taxation | Taxation Chinese Mainland Income Tax Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets are related to net operating losses and temporary book versus tax basis differences for its Chinese mainland-based subsidiaries and the VIEs that it consolidates, which are subject to income tax in the Chinese mainland. Chinese Mainland Withholding Tax on Dividends Dividends distributed by foreign-invested enterprises in the Chinese mainland to their immediate holding companies outside the Chinese mainland are subject to a 10% withholding tax. A lower withholding tax rate may be applied if there is a tax treaty between the Chinese mainland 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 an arrangement between the Chinese mainland and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income,” if such holding company is considered a non-Chinese Chinese Mainland Value Added Tax All of the Sohu Group’s revenues have been subject to VAT since May 1, 2016. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6% or 13%) Taxation on distributions from VIEs to Subsidiaries Pursuant to the contractual agreements with the VIEs and their respective shareholders, the Sohu Group’s Chinese mainland subsidiaries charge the VIEs service fees. For income tax purposes, the Sohu Group’s Chinese mainland subsidiaries and the VIEs file income tax returns on a separate basis. The service fees paid by the VIEs are deductible by the VIEs for Chinese mainland income tax purposes and are recognized as income by the Sohu Group’s Chinese mainland subsidiaries. U.S. Corporate Income Tax Sohu.com Inc., which was formerly the top-tier one-time Treatment of Toll Charge Related to the U.S. TCJA Beginning in the fourth quarter of 2017, the Sohu Group had recognized a provisional amount of income tax expense for the Toll Charge of $219 million, which represented management’s estimate of the amount of the Toll Charge that would have been payable by Sohu.com Inc. based on the deemed repatriation to the United States of its share of previously deferred earnings of certain of its non-U.S. For the fourth quarter of 2018, the Sohu Group’s management re-evaluated that The tax benefit recognized and the unrecognized tax benefit in relation to the Toll Charge may be subject to further adjustment in subsequent periods based on facts and circumstances that arose after December 31, 2023, such as any IRS assessments upon audit and management’s further judgment and estimates. Uncertain Tax Positions The Sohu Group is subject to various taxes in different jurisdictions, but primarily the Chinese mainland. Management reviews regularly the adequacy of the provisions for taxes as they relate to the Group’s income and transactions. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step |
Net Income/(Loss) per Share | Net Income/(Loss) per Share Basic net income/(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income/(loss) per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary 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. Additionally, for purposes of calculating the numerator of diluted net income/(loss) per share, the net income/(loss) attributable to the Sohu Group is calculated as discussed below. The adjustment will not be made if there is an anti-dilutive effect. Changyou’s net income/(loss) attributable to Sohu Sohu holds 100% of the combined total of Changyou’s outstanding ordinary shares, so Changyou’s net income/(loss) is wholly attributable to Sohu. After the Changyou Plans’ Modification, all of Changyou’s share-based awards became obligation-based awards. Accordingly, all of those Changyou awards are excluded from the calculation of Sohu’s diluted net income/(loss) per share. Changyou’s net income/(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income/(loss) per share. There have been no dilutive effects resulting from Changyou’s existing unvested share options. Sogou’s net income/(loss) attributable to Sohu (Discontinued) Prior to the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, Sogou’s net income/(loss) attributable to Sohu was determined using the percentage that the weighted average number of Sogou shares held by Sohu represented of the weighted average number of Sogou 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 Sogou, which is used for the calculation of basic net income per share. Sogou’s net income/(loss) attributable to Sohu is reflected as discontinued operations in the Sohu Group’s consolidated statements of comprehensive income. In the calculation of Sohu’s diluted net income/(loss) per share, assuming a dilutive effect, the percentage of Sohu’s shareholding in Sogou was calculated by treating unvested Sogou share options where the performance targets had been achieved, as well as vested but unexercised Sogou 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. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu’s diluted income/(loss) per share. As a result, Sogou’s net income/(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income/(loss) per share. As a result of the completion of the Tencent/Sohu Sogou Share Purchase, Sohu no longer has any ownership interest in Sogou and Sogou is not included in Sohu’s consolidated financial statements. |
Fair Value of Financial Instruments | 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 marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Sohu Group’s financial instruments consist primarily of cash equivalents, restricted cash, short-term investments, accounts receivable, other current assets, long-term investments, long-term time deposits, accounts payable, accrued liabilities, other short-term liabilities, and long-term other payables. |
Cash Equivalents | Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits with original maturities of three months or less and notice deposits. |
Short-term Investments | Short-term Investments The Sohu Group’s short-term investments mainly consist of investments in financial instruments with a variable interest rate and time deposits with maturities of three months to one year. For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets and time deposits, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts Receivable, Net | Accounts Receivable, Net The carrying value of accounts receivable is reduced by an allowance for credit losses that reflects the Sohu Group’s best estimate of the amounts that will not be collected. The Group makes estimations of the collectability of accounts receivable. Many factors are considered in estimating the general allowance, including reviewing delinquent accounts receivable, performing a customer credit analysis, and analyzing historical bad debt records and current and future economic trends. Accounts receivable represent historical balances recorded less related cash applications, less allowance for credit losses and any write-offs of any receivables not previously provided for. Allowance for credit losses Under ASU 2016-13, Accounts receivable are written off when there is no reasonable expectation of recovery. Subsequent recoveries of amounts previously written off are credited against the same line item. Accounts receivable, net, as of December 31, 2022 and 2023 consisted of the following (in thousands): As of December 31, 2022 2023 Accounts receivable, net Accounts receivable $ 81,453 $ 83,762 Less: Allowance for credit losses (13,912) (12,144) $ 67,541 $ 71,618 The following table presents the aging analysis of accounts receivable as of December 31, 2022 and 2023 (in thousands): As of December 31, 2022 2023 Less than 179 days $ 63,744 $ 65,304 180-359 4,526 6,684 360 days and greater 13,183 11,774 Total $ 81,453 $ 83,762 The movement of allowance for credit losses for the years ended December 31, 2021, 2022 and 2023 was as follows (in thousands): For the year ended December 31, 2021 2022 2023 Balance at the beginning of year $ 7,007 $ 12,358 $ 13,912 Additional allowance for credit losses, net of recoveries 6,292 3,279 (551) Write-offs (1,155) (585) (976) Exchange difference 214 (1,140) (241) Balance at the end of year $ 12,358 $ 13,912 $ 12,144 |
Long-term investments | Long-term Long-term investments include debt investments and equity investments. Debt investments Debt investments include investments in preferred shares and convertible bonds issued by privately-held companies. The Group elected the fair value option to account for these investments at their initial recognition. The fair value option permits the irrevocable election on an instrument-by-instrument Equity Investments Equity investments include investments in common stock or in-substance The Group assesses investments for impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately-held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments. If the assessment indicates that an impairment exists, the Group estimates the fair value of the investment and writes down the asset to its fair value, taking the corresponding charge to the consolidated statements of comprehensive income/(loss). |
Long-term Time Deposits | Long-term The Sohu Group elected the fair value method at the date of initial recognition of time deposits with maturities over one year and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Long-Lived Assets | Long-Lived Assets Long-lived assets include fixed assets and intangible assets. Fixed Assets Fixed assets mainly comprise office buildings, computer equipment and hardware, leasehold and building improvements, office furniture, and vehicles. Fixed assets are recorded at cost less accumulated depreciation with no residual value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Computer equipment and hardware 4-5 Leasehold and building improvements Lesser of term of the lease or the estimated useful lives of the assets Office furniture 5 Vehicles 4 Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of fixed assets is the difference between the net sale proceeds and the carrying value of the relevant assets and is recognized in operating expenses in the consolidated statements of comprehensive income. Intangible Assets Intangible assets mainly comprise operating rights for licensed games, purchased video content, domain names and trademarks, computer software, and developed technologies. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets other than purchased video content is computed using the straight-line method over their estimated useful lives. Amortization of purchased video content is computed based on the trend in viewership accumulation over the shorter of the applicable license period or two years. The estimated useful lives of the Group’s intangible assets are listed below: Intangible Assets Estimated Useful Lives (years) Operating rights for licensed games over the contract terms Purchased video content 1 month to 2 years Domain names and trademarks 4-30 Computer software 1-3 Developed technologies 3-10 Impairment of Long-lived Assets Other Than Purchased Video Content In accordance with ASC 360-10-35, Impairment of Purchased Video Content Purchased video content is stated at the lower of cost less accumulated amortization, or fair value. In accordance with ASC 920-350-35, |
Lease | Lease Under ASU 2016-02, Right-of-use lease-by-lease 842-20-25, |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. If a measurement period adjustment is identified, the Group recognizes the adjustment as part of the acquisition accounting. The Sohu Group increases or decreases the provisional amounts of identifiable assets or liabilities by means of increases or decreases in goodwill for measurement period adjustments. The measurement period will not exceed one year from the acquisition date. In accordance with ASC 350, the Group does not amortize goodwill, but tests it for impairment. The Group tests goodwill for impairment at the reporting unit level on an annual basis as of October 1, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The Group adopted ASU No. 2017-04, Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. |
Treasury Stock | Treasury Stock Treasury stock consists of the Company’s ordinary shares, including ordinary shares represented by ADSs, repurchased by the Company or that it is obligated to repurchase as of the reporting date. Ordinary shares included in treasury stock are no longer deemed to be outstanding. Treasury stock is accounted for under the cost method. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income, as presented on the Sohu Group’s consolidated balance sheets, consists of the Sohu Group’s cumulative foreign currency translation adjustment. |
Functional Currency and Foreign Currency Translation | Functional Currency and Foreign Currency Translation An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and intra-Group transactions and arrangements. The functional currency of Sohu.com Limited and its predecessor Sohu.com Inc. and the Sohu Group’s subsidiaries in the U.S., the Cayman Islands, the British Virgin Islands, and Hong Kong is the U.S. dollar. The functional currency of the subsidiaries and the VIEs that the Sohu Group consolidates in the Chinese mainland is the RMB. The functional currencies of the Sohu Group’s subsidiaries in other countries and regions are the currencies of those counties and regions. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured re-measurement For foreign currency translations, financial statements of entities with a functional currency other than the U.S. dollar are translated into U.S. dollars, which is the reporting currency. Assets and liabilities are translated at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Shareholders’ equity accounts are translated using the historical exchange rates at the date the entry to shareholders’ equity was recorded, except for the change in retained earnings during the year, which is translated using the historical exchange rates used to translate each period’s income statement. Differences resulting from translating a foreign currency to the reporting currency are recorded in accumulated other comprehensive income in the consolidated balance sheets. |
Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements The accounting standards that the Sohu Group adopted beginning January 1, 2023 did not have a significant impact on the Sohu Group’s consolidated financial statements. Impact of Recently Issued Accounting Pronouncements Not Yet Effective Segment Reporting (Topic 280). Segment Reporting (Topic 280)- Improvements to Reportable Segment Disclosures Income Taxes (Topic 740) . Income Taxes (Topic 740) - Improvements to Income Tax Disclosures |
The Company and Nature of Ope_2
The Company and Nature of Operations (Information of Subsidiaries and VIEs) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
THE COMPANY AND NATURE OF OPERATIONS [Abstract] | |
Information of all subsidiaries and VIEs | The principal subsidiaries and VIEs through which the Group conducted its business operations as of December 31, 2023 are described below: Name of Entity Date of Place of Effective Subsidiaries: Sohu.com (Hong Kong) Limited Incorporated on April 19, 2000 Hong Kong 100% Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”) Incorporated on July 25, 2003 People’s Republic of China 100% Sohu.com (Search) Limited Incorporated on October 28, 2005 Cayman Islands 100% Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) Incorporated on June 19, 2006 People’s Republic of China 100% Changyou.com Limited Incorporated on August 6, 2007 Cayman Islands 100% Changyou.com (HK) Limited Incorporated on August 13, 2007 Hong Kong 100% Beijing AmazGame Age Internet Technology Group Co., Ltd. (“AmazGame”) Incorporated on September 26, 2007 People’s Republic of China 100% Sohu.com (Game) Limited Incorporated on February 11, 2008 Cayman Islands 100% Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”) Incorporated on October 29, 2009 People’s Republic of China 100% Changyou.com Korea LLC Incorporated on January 7, 2010 Korea 100% Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”) Incorporated on May 31, 2010 People’s Republic of China 100% Fox Information Technology (Tianjin) Limited Incorporated on November 17, 2011 People’s Republic of China 100% Sohu Focus Limited Incorporated on July 11, 2013 Cayman Islands 100% Sohu Focus (HK) Limited (“Focus HK”) Incorporated on July 26, 2013 Hong Kong 100% Beijing Changyou Chuangxiang Software Technology Co., Ltd. (“Changyou Chuangxiang”) Incorporated on November 8, 2016 People’s Republic of China 100% VIEs: Beijing Century High-Tech Investment Co., Ltd. (“High Century”) Incorporated on December 28, 2001 People’s Republic of China 100% Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong”) Incorporated on February 7, 2002 People’s Republic of China 100% Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”) Incorporated on July 31, 2003 People’s Republic of China 100% Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”) Incorporated on August 23, 2007 People’s Republic of China 100% Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) Incorporated on May 17, 2010 People’s Republic of China 100% Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) Consolidated beginning on May 28, 2010 People’s Republic of China 100% Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) Incorporated on August 5, 2010 People’s Republic of China 100% Tianjin Jinhu Culture Development Co., Ltd (“Tianjin Jinhu”) Incorporated on November 24, 2011 People’s Republic of China 100% Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) Incorporated on July 15, 2014 People’s Republic of China 100% Guangzhou Qianjun Network Technology Co., Ltd. (“Guangzhou Qianjun”) Consolidated beginning on November 25, 2014 People’s Republic of China 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of accounts receivable, net | Accounts receivable, net, as of December 31, 2022 and 2023 consisted of the following (in thousands): As of December 31, 2022 2023 Accounts receivable, net Accounts receivable $ 81,453 $ 83,762 Less: Allowance for credit losses (13,912) (12,144) $ 67,541 $ 71,618 |
Schedule of aging analysis of accounts receivable | The following table presents the aging analysis of accounts receivable as of December 31, 2022 and 2023 (in thousands): As of December 31, 2022 2023 Less than 179 days $ 63,744 $ 65,304 180-359 4,526 6,684 360 days and greater 13,183 11,774 Total $ 81,453 $ 83,762 |
Schedule of the movement of allowance for credit losses | The movement of allowance for credit losses for the years ended December 31, 2021, 2022 and 2023 was as follows (in thousands): For the year ended December 31, 2021 2022 2023 Balance at the beginning of year $ 7,007 $ 12,358 $ 13,912 Additional allowance for credit losses, net of recoveries 6,292 3,279 (551) Write-offs (1,155) (585) (976) Exchange difference 214 (1,140) (241) Balance at the end of year $ 12,358 $ 13,912 $ 12,144 |
Estimated useful lives of fixed assets | Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Computer equipment and hardware 4-5 Leasehold and building improvements Lesser of term of the lease or the estimated useful lives of the assets Office furniture 5 Vehicles 4 |
Estimated useful lives of intangible assets | The estimated useful lives of the Group’s intangible assets are listed below: Intangible Assets Estimated Useful Lives (years) Operating rights for licensed games over the contract terms Purchased video content 1 month to 2 years Domain names and trademarks 4-30 Computer software 1-3 Developed technologies 3-10 |
ASC 606 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenues disaggregated by products and services | The following table presents the Group’s revenues disaggregated by products and services: Year Ended December 31, 2021 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 97,421 0 97,421 Sohu Video 26,803 0 26,803 17173.com Website 0 10,743 10,743 Online games: PC games 0 469,332 469,332 Mobile games 0 168,893 168,893 Others 62,382 2 62,384 Total $ 186,606 648,970 835,576 Year Ended December 31, 2022 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 76,751 0 76,751 Sohu Video 19,620 0 19,620 17173.com Website 0 6,862 6,862 Online games: PC games 0 425,744 425,744 Mobile games 0 159,680 159,680 Others 45,215 0 45,215 Total $ 141,586 592,286 733,872 Year Ended December 31, 2023 (in thousands) Sohu Changyou Total Brand advertising: Sohu Media Portal $ 66,103 0 66,103 Sohu Video 17,572 0 17,572 17173.com Website 0 5,014 5,014 Online games: PC games 0 368,721 368,721 Mobile games 0 110,976 110,976 Others 32,286 0 32,286 Total $ 115,961 484,711 600,672 |
Discontinued Operations (Tables
Discontinued Operations (Tables) - Sogou Inc. [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Comprehensive Income Information of Discontinued Operations | The following tables set forth the results of operations and cash flows of discontinued operations with respect to Sogou, that were included in the Sohu Group’s consolidated financial statements (in thousands): Year Ended December 31, 2021 (1) Revenues $ 407,607 Cost of revenues 274,408 Gross profit 133,199 Operating expenses: Research and development (2) 141,506 Sales and marketing (2) 53,481 General and administrative (2) 11,854 Total operating expenses 206,841 Operating loss (73,642) Interest income 2,377 Interest expense (761) Foreign currency exchange loss (848) Other income, net 81,655 Income from discontinued operations before income tax expense 8,781 Income tax benefit (1,112) Results of operations from discontinued operations, net of tax 9,893 Gain on disposal of discontinued operations 855,009 Net income from discontinued operations, net of tax 864,902 Note (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. Note (2): Expenses generated from marketing services between the Sohu Group and Sogou, and leasing expenses generated from a building that Sohu leased to Sogou |
Schedule Of Effective Income tax Rate Of Discontinued Operations | Year Ended December 31, 2021 (1)(3) Statutory Rate: 25% Effect of tax holidays applicable to subsidiaries and consolidated VIEs 127% Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs (90%) Changes in valuation allowance for deferred tax assets 349% Research and development super-deduction and other permanent book-tax (249%) Capital gains from equity investments (175%) (13%) Note (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. Note (3): The changes in the effective tax rate for the period ended September 23, 2021 resulted from the lower income from discontinued operations before income tax expense. |
Cash Flow Information of Discontinued Operations | Year Ended December 31, 2021 (1) Net cash used in discontinued operating activities $ (175,888) Net cash provided by discontinued investing activities 1,054,148 Net cash used in discontinued financing activities (9,132) Note (1): Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION [Abstract] | |
Segment operating information by segment | The following tables present summary information by segment (in thousands): Year Ended December 31, 2021 Sohu Changyou Eliminations Consolidated Revenues $ 186,606 $ 648,970 $ 0 $ 835,576 Segment cost of revenues (1) (113,881) (90,517) 4 (204,394) Segment gross profit 72,725 558,453 4 631,182 SBC in cost of revenues (2) (1) (276) 0 (277) Gross profit 72,724 558,177 4 630,905 Operating expenses: Product development (1) (113,186) (151,773) 0 (264,959) Sales and marketing (1) (126,126) (56,396) 0 (182,522) General and administrative (1) (36,949) (40,702) 0 (77,651) SBC in operating expenses (2) (804) (7,497) 0 (8,301) Total operating expenses (277,065) (256,368) 0 (533,433) Operating profit/(loss) (204,341) 301,809 4 97,472 Other income, net 29,416 Interest income 15,641 Interest expense (7,500) Exchange difference (3,462) Income before income tax expense 131,567 Income tax expense (62,296) Net income from continuing operations 69,271 Net income from discontinued operations 864,902 Net income $ 934,173 Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $23.4 million and $12.6 million, respectively, for the year ended December 31, 2021. Note (2): “SBC” stands for share-based compensation expense. Year Ended December 31, 2022 Sohu Changyou Eliminations Consolidated Revenues $ 141,586 $ 592,286 $ 0 $ 733,872 Segment cost of revenues (1) (98,373) (93,009) 0 (191,382) Segment gross profit 43,213 499,277 0 542,490 SBC in cost of revenues (2) (47) (144) 0 (191) Gross profit 43,166 499,133 0 542,299 Operating expenses: Product development (1) (120,431) (138,315) 0 (258,746) Sales and marketing (1) (167,837) (57,515) 0 (225,352) General and administrative (1) (32,494) (21,832) 0 (54,326) SBC in operating expenses (2) (630) (4,118) 0 (4,748) Total operating expenses (321,392) (221,780) 0 (543,172) Operating profit/(loss) (278,226) 277,353 0 (873) Other income, net 17,643 Interest income 17,311 Exchange difference 6,524 Income before income tax expense 40,605 Income tax expense (57,946) Net loss $ (17,341) Note (1): Total depreciation and amortization expenses of Sohu and Note (2): “SBC” stands for share-based compensation expense. Year Ended December 31, 2023 Sohu Changyou Eliminations Consolidated Revenues $ 116,228 $ 484,709 $ (265) $ 600,672 Segment cost of revenues (1) (78,858) (66,882) 0 (145,740) Segment gross profit 37,370 417,827 (265) 454,932 SBC in cost of revenues (2) (7) (10) 0 (17) Gross profit 37,363 417,817 (265) 454,915 Operating expenses: Product development (1) (127,038) (152,911) 263 (279,686) Sales and marketing (1) (174,526) (38,899) 2 (213,423) General and administrative (1) (25,045) (23,380) 0 (48,425) SBC in operating expenses (2) (89) (602) 0 (691) Total operating expenses (326,698) (215,792) 265 (542,225) Operating profit/(loss) (289,335) 202,025 0 (87,310) Other income, net 35,746 Interest income 45,222 Exchange difference 692 Income before income tax expense (5,650) Income tax expense (60,420) Net loss from continuing operations (66,070) Net income from discontinued operations 35,426 Net loss $ (30,644) Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $18.8 million and $11.4 million, respectively, for the year ended December 31, 2023. Note (2): “SBC” stands for share-based compensation expense. |
Segment assets information by segment | As of December 31, 2022 Sohu Changyou Eliminations Consolidated Cash and cash equivalents $ 466,976 $ 230,845 $ 0 $ 697,821 Accounts receivable, net 38,969 28,572 0 67,541 Fixed assets, net (1) 148,447 139,779 0 288,226 Total assets (2) $ 1,891,414 $ 2,572,768 $ (2,486,406) $ 1,977,776 Note (1): Total additions to fixed assets of Sohu and Changyou were $4.6 million and $1.0 million, respectively, for the year ended December 31, 2022. Note (2): The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs, and elimination of intra-Group loans between Sohu and Changyou. As of December 31, 2023 Sohu Changyou Eliminations Consolidated Cash and cash equivalents $ 189,998 $ 172,506 $ 0 $ 362,504 Accounts receivable, net 32,673 38,945 0 71,618 Fixed assets, net (1) 137,820 131,238 0 269,058 Total assets (2) $ 3,100,491 $ 2,950,224 $ (4,168,617) $ 1,882,098 Note (1): Total additions to fixed assets of Sohu and Changyou were $1.1 million and $1.2 million, respectively, for the year ended December 31, 2023. Note (2): The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs, and elimination of intra-Group loans between Sohu and Changyou. |
Share-based Compensation Expe_2
Share-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-based compensation expense recognized in costs and expenses | Share-based compensation expense was recognized in costs and expenses for the years ended December 31, 2021, 2022 and 2023 as follows (in thousands): Year Ended December 31, Share-based compensation expense 2021 2022 2023 Cost of revenues $ 277 $ 191 $ 17 Product development expenses 3,904 2,026 156 Sales and marketing expenses 166 128 26 General and administrative expenses 4,231 2,594 509 $ 8,578 $ 4,939 $ 708 |
Share-based compensation expense was recognized for share awards of Sohu (excluding Sohu Video), Changyou and Fox Video | Share-based compensation expense was recognized for share awards of Sohu (excluding Fox Video), Changyou and Fox Video as follows (in thousands): Year Ended December 31, Share-based compensation expense 2021 2022 2023 For Sohu (excluding Fox Video) share-based awards $ 1,849 $ 677 $ 96 For Changyou share-based awards 7,773 4,262 612 For Fox Video share-based awards (1,044 ) 0 0 $ 8,578 $ 4,939 $ 708 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INCOME, NET [Abstract] | |
Other Income/(Expense) | The following table summarizes the Sohu Group’s other income/(expense) (in thousands): Year Ended December 31, 2021 2022 2023 Government grant 418 4,608 17,486 Rental income - from properties owned by Sohu (1) 10,427 10,025 7,530 Income from short-term investments 5,260 13,430 4,709 Additional deduction of Chinese mainland value-added tax and individual tax 4,827 4,952 2,486 Investment income/(loss) 6,352 (5,381 ) 1,707 Donations (1,565 ) (31 ) 0 Impairment loss on equity investments (2) (215 ) (11,954 ) (283 ) Others 3,912 1,994 2,111 $ 29,416 $ 17,643 $ 35,746 Note (1): Sogou leased from Sohu, on an arms-length basis, office space at Sohu.com Internet Plaza under a lease that expired on Note (2): In the fourth quarter of 2022, the Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance sheet components account, net | As of December 31, 2022 2023 Accounts receivable, net Accounts receivable $ 81,453 83,762 Allowance for credit losses (13,912) (12,144) $ 67,541 71,618 |
Balance sheet components other assets and liabilities | As of December 31, 2022 2023 Prepaid and other current assets Matching loans due from a related party (See Note 9) $ 34,123 $ 33,665 Prepaid taxes 11,468 17,183 Prepaid revenue-sharing costs 12,552 12,400 Prepaid content and license costs (1) 7,349 5,964 Prepaid professional fees 1,999 1,970 Receivables from third party payment platforms 1,711 1,144 Prepaid rental deposits 1,717 1,126 Prepaid advertising and promotion fees 3,437 645 Employee advances 1,023 534 Interest receivable from bank deposits with original maturities of three months or less 430 447 Prepaid office rent and facilities expenses 320 290 Others 6,964 6,603 $ 83,093 $ 81,971 Other short-term liabilities Matching loans due to a related party (See Note 9) 34,123 34,123 Share-based awards in Changyou (See Note 18) 26,906 27,831 Deposits from customers 11,100 10,187 Contract deposits from advertisers 2,030 1,743 Lease liabilities 2,039 1,187 Consideration payable for equity investments 707 695 Contingent liability related to Shanghai Jingmao liquidation (2) 21,172 0 Other payables related to Shanghai Jingmao liquidation (3) 8,587 0 Others 7,868 5,716 $ 114,532 $ 81,482 Note (1): Changyou recognized impairment losses of $5.8 million and $2.0 million for prepaid and other current assets related to content and game licenses for 2023 and 2022, respectively. Note (2): The contingent liability represented the aggregate of estimated potential payments to third parties in connection with the liquidation of Shanghai Jingmao. The stated amount of the contingent liability reflected Changyou’s best estimate as of December 31, 2022 pursuant to ASC 450-20. Note (3): As of December 31, 2022, the stated amount in other payables represented the aggregate amount that Changyou received from the bankruptcy proceedings as a creditor of Shanghai Jingmao during the process of the liquidation of Shanghai Jingmao. In August 2023, as the bankruptcy proceeding was concluded by the court, Changyou reversed those payables and recognized the same amount, together with an additional distribution of $5.2 million received in 2023, as disposal gain. As of December 31, 2022 2023 Receipts in advance and deferred revenue Receipts in advance relating to: Brand advertising business $ 2,696 $ 2,527 Online game business 5,636 3,050 Other business 4,340 4,947 Total receipts in advance 12,672 10,524 Deferred revenue 35,408 40,305 $ 48,080 $ 50,829 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Financial instruments, measured at fair value | The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2022 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 541,393 $ 0 $ 541,393 $ 0 Short-term investments 473,624 0 473,624 0 Equity investments with readily determinable fair values 3,208 3,208 0 0 Long-term 265,802 0 265,802 0 The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2023 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 169,240 $ 0 $ 169,240 $ 0 Short-term investments 597,770 0 597,770 0 Debt investments 22,945 0 0 22,945 Long-term 388,613 0 388,613 0 |
Assets measured at fair value on nonrecurring basis | The following table sets forth assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2022 and 2023 (in thousands) Fair value measurements at reporting date using Items As of Quoted Prices Significant Other Significant Purchased video content recorded in prepaid and other assets $ 2,263 $ 0 $ 0 $ 2,263 Intangible assets, net 5,394 0 0 5,394 Goodwill 47,415 0 0 47,415 Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 261 $ 0 $ 0 $ 261 Intangible assets, net 2,226 0 0 2,226 Goodwill 47,163 0 0 47,163 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
Components of operating lease expense | Components of operating lease expense are as follows (in thousands): Year ended December 31, 2022 2023 Operating lease expense $ 2,737 $ 2,383 Short-term lease expense 83 307 Total operating lease expense $ 2,820 $ 2,690 |
Cash paid for amounts included in the measurement of lease liabilities | Supplemental cash flow information related to leases are as follows (in thousands): Year ended December 31, 2022 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,788 $ 2,314 |
Right-of-use assets obtained in exchange for lease liabilities | Year ended December 31, 2022 2023 Right-of-use Operating leases $ 126 $ 3,114 |
Supplemental balance sheet information related to operating leases | The following table presents supplemental balance sheet information related to the operating leases (in thousands): Year ended December 31, Assets: 2022 2023 Operating lease right-of-use $ 2,479 $ 3,348 Liabilities: Current lease liabilities 2,039 1,187 Non-current 340 2,130 Total operating lease liabilities $ 2,379 $ 3,317 |
Maturities of lease liabilities under operating leases | Maturities of lease liabilities under operating leases as of December 31, 2023 are as follows (in thousands): 2024 $ 1,314 2025 1,274 2026 1,013 2027 0 2028 0 Thereafter 0 Total future lease payments 3,601 Less: imputed interest 284 Total present value of lease liabilities $ 3,317 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FIXED ASSETS [Abstract] | |
Fixed assets | The following table summarizes the Sohu Group’s fixed assets (in thousands): As of December 31, 2022 2023 Office buildings $ 367,296 $ 361,172 Computer equipment and hardware 110,416 91,183 Leasehold and building improvements 34,212 33,704 Office furniture 6,301 5,374 Vehicles 3,085 2,957 Fixed assets, gross 521,310 494,390 Accumulated depreciation (233,084) (225,332 ) Fixed assets, net $ 288,226 $ 269,058 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL [Abstract] | |
Changes in the carrying value of goodwill by segment | Changes in the carrying value of goodwill by segment are as follows (in thousands): Sohu Changyou Total Balance as of December 31, 2021 Goodwill 70,800 180,543 251,343 Accumulated impairment losses (32,246 ) (170,286 ) (202,532 ) $ 38,554 $ 10,257 $ 48,811 Transactions in 2022 Foreign currency translation adjustment (1,396 ) 0 (1,396 ) Balance as of December 31, 2022 $ 37,158 $ 10,257 $ 47,415 Balance as of December 31, 2022 Goodwill 69,404 180,543 249,947 Accumulated impairment losses (32,246 ) (170,286 ) (202,532 ) $ 37,158 $ 10,257 $ 47,415 Transactions in 2023 Foreign currency translation adjustment (252 ) 0 (252 ) Balance as of December 31, 2023 $ 36,906 $ 10,257 $ 47,163 Balance as of December 31, 2023 Goodwill 69,152 180,543 249,695 Accumulated impairment losses (32,246 ) (170,286 ) (202,532 ) $ 36,906 $ 10,257 $ 47,163 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Finite-lived intangible assets by major class | As of December 31, 2022 Items Gross Accumulated Accumulated Net Purchased video content $ 71,753 $ (49,920 ) $ (20,885 ) $ 948 Operating rights for licensed games 56,283 (39,638 ) (12,728 ) 3,917 Domain names and trademarks 24,867 (9,752 ) (15,110 ) 5 Computer software 11,832 (11,308 ) 0 524 Developed technologies 8,212 (869 ) (7,343 ) 0 Others 2,743 (905 ) (1,838 ) 0 Total $ 175,690 $ (112,392 ) $ (57,904 ) $ 5,394 As of December 31, 2023 Items Gross Accumulated Accumulated Net Purchased video content $ 50,998 $ (37,502 ) $ (13,097 ) $ 399 Operating rights for licensed games 56,724 (42,857 ) (12,513 ) 1,354 Domain names and trademarks 21,832 (6,974 ) (14,858 ) 0 Computer software 11,538 (11,065 ) 0 473 Developed technologies 8,092 (857 ) (7,235 ) 0 Others 2,696 (889 ) (1,807 ) 0 Total $ 151,880 $ (100,144 ) $ (49,510 ) $ 2,226 |
Expected amortization expense | As of December 31, 2023, amortization expenses for future periods are estimated to be as follows: For the year ended December 31, (in thousands) 2024 $ 1,841 2025 363 2026 22 2027 0 2028 0 Thereafter 0 Total expected amortization expense $ 2,226 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TAXATION [Abstract] | |
Components of income before income taxes | The components of income before income taxes are as follows (in thousands): Year ended December 31, 2021 2022 2023 Income/(loss) before income tax expense Income/(loss) from Chinese mainland operations $ 153,708 $ 37,146 $ (22,560) Income/(loss) from non-Chinese (22,141 ) 3,459 16,910 Total income/(loss) before income tax expense from continuing operations $ 131,567 $ 40,605 $ (5,650) Income tax expense applicable to Chinese mainland operations Current tax $ 31,089 $ 27,735 $ 22,701 Deferred tax 26,207 22,524 24,728 Subtotal income tax expense applicable to Chinese mainland operations 57,296 50,259 47,429 Non-Chinese 4,817 7,534 12,850 Non-Chinese 183 153 141 Total income tax expense from continuing operations $ 62,296 $ 57,946 $ 60,420 |
Combined effects of the income tax exemption and reduction available | The combined effects of the income tax exemption and reduction available to the Group are as follows (in thousands, except per share data): Year Ended December 31, 2021 2022 2023 Tax holiday effect $ 1,635 $ (6,282 ) $ (18,961 ) Basic net income/(loss) per share effect 0.04 (0.18 ) (0.56 ) |
Reconciliation between the U.S. federal statutory rate and the Group's effective tax rate | The following is reconciliation between the statutory rate and the Group’s effective tax rate. For 2021, 2022 and 2023, the statutory rate represented the Chinese mainland statutory rate of 25%. The table does not reflect any accruals related to the Toll Charge. See “ U.S. Corporate Income Tax Treatment of Toll Charge Related to the U.S. TCJA. Year Ended December 31, 2021 2022 2023 Statutory Rate: 25 % 25 % 25 % Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) (1 %) 15 % (335 %) Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs 3 % 0 % 44 % Effect of withholding taxes 19 % 56 % (331 %) Changes in valuation allowance for deferred tax assets 31 % 116 % (1,077 %) Research and development super-deduction (2) (19 %) (85 %) 737 % Others (14 %) (3 %) 95 % 44 % 124 % (842 %) Note (1): The change in the regular 25% rate of income tax to preferential income tax rates that Changyou’s subsidiaries and VIEs were entitled to as Software Enterprises for 2021 and 2022 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table. Note (2): Under Chinese mainland regulations issued in September 2022 that were applicable from October 1, 2022 to December 31, 2022, additional research and development expenses were eligible for deduction from taxable income. |
Deferred tax assets and liabilities | Significant components of the Group’s deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2022 2023 Deferred tax assets: Net operating loss from operations $ 321,230 $ 367,024 Accrued bonus and commissions 4,724 3,475 Intangible assets transfer 337 237 Others 9,938 9,472 Total deferred tax assets 336,229 380,208 Less: Valuation allowance (320,589 ) (371,532 ) Net deferred tax assets $ 15,640 $ 8,676 Deferred tax liabilities Withholding tax for dividend $ (239,013 ) $ (253,482 ) Others (8,800 ) (8,033 ) Total deferred tax liabilities $ (247,813 ) $ (261,515 ) |
Movement of the valuation allowances | The following table sets forth the movement of the valuation allowances for deferred tax assets for the years presented (in thousands): For the Year Ended December 31, 2021 2022 2023 Beginning balance $ 326,755 $ 289,097 $ 320,589 Provision for the year 45,787 69,087 60,554 Reversal for the year (91,019) (12,844) (4,134) Foreign currency translation adjustment 7,574 (24,751) (5,477) Ending balance $ 289,097 $ 320,589 $ 371,532 |
Uncertain tax positions | The following table summarizes the Group’s unrecognized tax benefit from January 1, 2021 to December 31, 2023 (in thousands): As of December 31, 2021 2022 2023 Beginning balance $ 188,760 $ 193,918 $ 200,228 Increases related to prior year tax positions 4,827 7,534 12,850 Foreign currency translation adjustment 331 (1,224 ) (219 ) Ending balance $ 193,918 $ 200,228 $ 212,859 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments | The following table sets forth the Group’s commitments as of December 31, 2023 (in thousands): 2024 2025 2026 2027 2028 Thereafter Total Royalties and expenditures for licensed content of games $ 15,224 1,412 1,059 0 0 0 17,695 Purchase of content and services 8,029 290 23 0 0 0 8,342 Purchase of bandwidth 7,021 40 14 8 0 0 7,083 Operating lease obligations 3,512 1,083 981 0 0 0 5,576 Others 295 0 0 0 0 0 295 Total Payments Required $ 34,081 2,825 2,077 8 0 0 38,991 |
VIEs (Tables)
VIEs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
VIES [Abstract] | |
Financial information of consolidated VIEs | The following financial information of the Sohu Group’s consolidated VIEs (including subsidiaries of these VIEs) is included in the accompanying consolidated financial statements (in thousands): As of December 31, 2022 2023 ASSETS: Cash and cash equivalents $ 21,732 $ 6,665 Restricted cash 1,838 1,412 Short-term investments 4,604 18,743 Accounts receivable, net 38,622 32,953 Prepaid and other current assets 13,934 5,514 Intra-Group receivables due from subsidiaries 594,099 502,353 Total current assets 674,829 567,640 Fixed assets, net 352 203 Other non-current 53,450 48,538 Total assets $ 728,631 $ 616,381 LIABILITIES: Accounts payable $ 10,909 $ 7,916 Accrued liabilities 37,946 28,525 Receipts in advance and deferred revenue 40,948 43,958 Other current liabilities 22,514 19,484 Intra-Group payables due to subsidiaries 402,546 283,083 Total current liabilities 514,863 382,966 Long-term tax liabilities 13,242 13,021 Deferred tax liabilities 549 0 Other non-current 1,436 1,445 Total liabilities $ 530,090 $ 397,432 Year Ended December 31, 2021 2022 2023 Revenues: Third-party revenues $ 664,823 $ 591,480 $ 477,202 Intra-Group revenues 21,488 27,914 13,283 Total revenues 686,311 619,394 490,485 Cost of revenues: Third-party cost of revenues 81,725 96,603 55,227 Intra-Group cost of revenues 136,221 104,883 86,435 Total cost of revenues 217,946 201,486 141,662 Operating expenses: Third-party operating expenses 72,126 72,911 44,059 Intra-Group operating expenses 366,762 329,226 282,812 Total operating expenses 438,888 402,137 326,871 Net income from continuing operations 35,805 2,691 23,879 Net loss from discontinued operations (47,924) 0 0 Year ended December 31, 2021 2022 2023 Cash flows from operating activities: Net cash provided by transactions with third parties $ 541,172 $ 448,936 $ 409,762 Net cash used in transactions with intra-Group entities (505,553 ) (445,660 ) (382,593 ) Net cash provided by continuing operating activities 35,619 3,276 27,169 Net cash used in discontinued operating activities (1,789 ) 0 0 Net cash provided by operating activities 33,830 3,276 27,169 Cash flows from investing activities: Net cash used in transactions with third parties (23,887 ) (5,421 ) (14,922 ) Net cash provided by/(used in) transactions with intra-Group entities (140,671 ) 72,497 73,894 Net cash provided by/(used in) continuing investing activities (164,558 ) 67,076 58,972 Net cash provided by discontinued investing activities 12,116 0 0 Net cash provided by/(used in) investing activities (152,442 ) 67,076 58,972 Cash flows from financing activities: Net cash provided by/(used in) transactions with intra-Group entities 111,888 (79,209 ) (101,611 ) Net cash provided by/(used in) continuing financing activities 111,888 (79,209 ) (101,611 ) Net cash used in discontinued financing activities (9,131 ) 0 0 Net cash provided by/(used in) financing activities 102,757 (79,209 ) (101,611 ) |
Sohu.com Limited Shareholders_2
Sohu.com Limited Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sohu.com Limited's outstanding shares | Summary of the Company’s outstanding shares (in thousands): Number of Outstanding Shares As of December 31, 2021 2022 2023 Balance, beginning of year 39,306 38,221 33,737 Issuances: 44 25 7 Repurchases: (1,129 ) (4,509 ) (696 ) Balance, end of year 38,221 33,737 33,048 Treasury Stock |
Sohu 2018 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | A summary of option activity under the Sohu 2018 Share Incentive Plan as of and for the year ended December 31, 2023 is presented below: Weighted Number Weighted Average Aggregate Of Average Remaining Intrinsic Shares Exercise Contractual Value (1) Options (in thousands) Price Life (Years) (in thousands) Outstanding as of January 1, 2023 354 $ 0.001 $ Granted 107 0.001 Exercised (7 ) 0.001 Forfeited or expired 0 Outstanding as of December 31, 2023 454 0.001 4.60 4,503 Vested as of December 31, 2023 454 0.001 4.60 4,503 Exercisable as of December 31, 2023 454 0.001 4.60 4,503 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohu’s closing ADS price of $9.93 on December 31, 2023 and the nominal exercise price of the options. |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling interest in the consolidated statements of comprehensive income /(loss) | For the years ended December 31, 2023, 2022 and 2021, the Sohu Group had net loss of $0.3 million, net income of $2,000 and net income of $6.4 million, respectively, attributable to the noncontrolling interest in the consolidated statements of comprehensive income/(loss). Year Ended December 31, 2021 2022 2023 Changyou $ (3 ) $ 2 $ (265 ) Sogou 6,451 0 0 Total $ 6,448 $ 2 $ (265 ) |
Net Income_(Loss) per Share (Ta
Net Income/(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME/(LOSS) PER SHARE [Abstract] | |
Calculation of basic and diluted net loss per share | The following table presents the calculation of the Sohu Group’s basic and diluted net loss per share (in thousands, except per share data). Year Ended December 31, 2021 2022 2023 Numerator: Net income/(loss) from continuing operations attributable to Sohu.com Limited, basic $ 69,274 $ (17,343 ) $ (65,805 ) Net income from discontinued operations attributable to Sohu.com Limited, basic 858,451 0 35,426 Net income/(loss) attributable to Sohu.com Limited, basic 927,725 (17,343 ) (30,379 ) Effect of dilutive securities: Incremental dilution from Sogou (20 ) 0 0 Net income/(loss) from continuing operations attributable to Sohu.com Limited, diluted 69,274 (17,343 ) (65,805 ) Net income from discontinued operations attributable to Sohu.com Limited, diluted 858,431 0 35,426 Net income/(loss) attributable to Sohu.com Limited, diluted $ 927,705 $ (17,343 ) $ (30,379 ) Denominator: Weighted average basic ordinary shares outstanding 39,501 34,945 34,109 Weighted average diluted ordinary shares outstanding $ 39,501 $ 34,945 $ 34,109 Basic net income/(loss) per share attributable to Sohu.com Limited Continuing operations $ 1.75 $ (0.50 ) $ (1.93 ) Discontinued operations 21.74 0 1.04 Net income/(loss) per share 23.49 (0.50 ) (0.89 ) Diluted net income/(loss) per share attributable to Sohu.com Limited Continuing operations $ 1.75 $ (0.50 ) $ (1.93 ) Discontinued operations 21.74 0 1.04 Net income/(loss) per share 23.49 (0.50 ) (0.89 ) |
The Company and Nature of Ope_3
The Company and Nature of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 23, 2021 | Apr. 17, 2020 |
Tencent/Sohu Sogou Share Purchase [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Sale of stock, Consideration received on transaction | $ 1,180 | |
Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Voting power held by the Company | 100% | |
Changyou Merger [Member] | Changyou [Member] | Sohu.com Limited [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Voting power held by the Company | 100% | |
Ordinary Shares [Member] | Changyou Merger [Member] | Changyou [Member] | Sohu.com Limited [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of outstanding equity capital held by the Company | 100% | |
Class A Ordinary Shares and Class B Ordinary Shares [Member] | Sohu Search [Member] | Tencent/Sohu Sogou Share Purchase [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Sale of stock, price per share | $ 9 |
The Company and Nature of Ope_4
The Company and Nature of Operations (Information of Subsidiaries and VIEs) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Sohu.com (Hong Kong) Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Apr. 19, 2000 |
Place of Incorporation | Hong Kong |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Sohu New Era Information Technology Co., Ltd. ("Sohu Era") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jul. 25, 2003 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Sohu.com (Search) Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Oct. 28, 2005 |
Place of Incorporation | Cayman Islands |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Sohu New Media Information Technology Co., Ltd. ("Sohu Media") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jun. 19, 2006 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Changyou.com Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Aug. 06, 2007 |
Place of Incorporation | Cayman Islands |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Changyou.com (HK) Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Aug. 13, 2007 |
Place of Incorporation | Hong Kong |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing AmazGame Age Internet Technology Group Co., Ltd. ("AmazGame") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Sep. 26, 2007 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Sohu.com (Game) Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Feb. 11, 2008 |
Place of Incorporation | Cayman Islands |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Changyou Gamespace Software Technology Co., Ltd. ("Gamespace") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Oct. 29, 2009 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Changyou.com Korea LLC [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jan. 07, 2010 |
Place of Incorporation | Korea |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Sohu New Momentum Information Technology Co., Ltd. ("Sohu New Momentum") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | May 31, 2010 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Fox Information Technology (Tianjin) Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Nov. 17, 2011 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Sohu Focus Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jul. 11, 2013 |
Place of Incorporation | Cayman Islands |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Sohu Focus (HK) Limited ("Focus HK") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jul. 26, 2013 |
Place of Incorporation | Hong Kong |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Changyou Chuangxiang Software Technology Co., Ltd. ("Changyou Chuangxiang") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Nov. 08, 2016 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Century High-Tech Investment Co., Ltd. ("High Century") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Dec. 28, 2001 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Heng Da Yi Tong Information Technology Co., Ltd. ("Heng Da Yi Tong") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Feb. 07, 2002 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Sohu Internet Information Service Co., Ltd. ("Sohu Internet") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jul. 31, 2003 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Gamease Age Digital Technology Co., Ltd. ("Gamease") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Aug. 23, 2007 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Sohu Donglin Advertising Co., Ltd. ("Donglin") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | May 17, 2010 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Shanghai ICE Information Technology Co., Ltd. ("Shanghai ICE") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | May 28, 2010 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Guanyou Gamespace Digital Technology Co., Ltd. ("Guanyou Gamespace") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Aug. 05, 2010 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Tianjin Jinhu Culture Development Co., Ltd ("Tianjin Jinhu") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Nov. 24, 2011 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Beijing Focus Interactive Information Service Co., Ltd. ("Focus Interactive") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Jul. 15, 2014 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
Guangzhou Qianjun Network Technology Co., Ltd. ("Guangzhou Qianjun") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation | Nov. 25, 2014 |
Place of Incorporation | People’s Republic of China |
Effective Interest held through equity ownership/contractual arrangements. | 100% |
The Company and Nature of Ope_5
The Company and Nature of Operations (Changyou's Business) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization and Nature of Operations [Line Items] | |||
Revenues | $ 600,672 | $ 733,872 | $ 835,576 |
TLBB PC [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 321,400 | ||
Legacy TLBB Mobile [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | $ 55,400 | ||
Product Risk [Member] | Total revenues [Member] | TLBB PC [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of concentration risk | 53% | ||
Product Risk [Member] | Total revenues [Member] | Legacy TLBB Mobile [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of concentration risk | 9% | ||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | TLBB PC [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of concentration risk | 67% | ||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | Legacy TLBB Mobile [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of concentration risk | 12% | ||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | TLBB PC [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of concentration risk | 66% | ||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | Legacy TLBB Mobile [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of concentration risk | 11% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Noncontrolling Interest Recognition) (Details) | Apr. 17, 2020 |
Sohu [Member] | Common Stock [Member] | Changyou [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of ordinary shares held | 100% |
Changyou [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Voting power held by the Company | 100% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Revenue Recognition, Adoption of ASC 606, Revenues Disaggregated by Products and Services) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | $ 600,672 | $ 733,872 | $ 835,576 |
ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 600,672 | 733,872 | 835,576 |
Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 115,961 | 141,586 | 186,606 |
Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 484,711 | 592,286 | 648,970 |
Brand advertising [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 88,689 | 103,233 | 134,967 |
Sohu Media Portal [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 66,103 | 76,751 | 97,421 |
Sohu Media Portal [Member] | Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 66,103 | 76,751 | 97,421 |
Sohu Media Portal [Member] | Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 0 | 0 | 0 |
Sohu Video [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 17,572 | 19,620 | 26,803 |
Sohu Video [Member] | Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 17,572 | 19,620 | 26,803 |
Sohu Video [Member] | Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 0 | 0 | 0 |
17173.com Website [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 5,014 | 6,862 | 10,743 |
17173.com Website [Member] | Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 0 | 0 | 0 |
17173.com Website [Member] | Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 5,014 | 6,862 | 10,743 |
Online games [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 479,697 | 585,424 | 638,225 |
PC games [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 368,721 | 425,744 | 469,332 |
PC games [Member] | Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 0 | 0 | 0 |
PC games [Member] | Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 368,721 | 425,744 | 469,332 |
Mobile games [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 110,976 | 159,680 | 168,893 |
Mobile games [Member] | Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 0 | 0 | 0 |
Mobile games [Member] | Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 110,976 | 159,680 | 168,893 |
Others [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 32,286 | 45,215 | 62,384 |
Others [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 32,286 | 45,215 | 62,384 |
Others [Member] | Sohu [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | 32,286 | 45,215 | 62,382 |
Others [Member] | Changyou [Member] | ASC 606 [Member] | |||
Revenues Disaggregated by Products and Services [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Revenue Recognition, Contract Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Allowance for credit losses | $ 12.1 | $ 13.9 |
Amount of revenue recognized that included in receipts in advance and deferred revenue | $ 43.5 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Share-based Compensation Expense) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Apr. 17, 2020 | Dec. 31, 2023 | |
Changyou 2014 Share Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share options granted | 5,884,464 | |
Changyou 2019 Share Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share options granted | 2,136,040 | |
Sohu (excluding Fox Video) [Member] | Sohu 2010 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Sohu (excluding Fox Video) [Member] | Sohu 2010 Stock Incentive Plan [Member] | Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Award vesting period | 4 years | |
Changyou [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share options granted | 8,020,504 | |
Changyou [Member] | Class A Ordinary Shares [Member] | Changyou Merger [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fixed price of share | $ 5.39 | $ 5.39 |
Consideration Per Share | 5.4 | |
Exercise prices of option granted | 0.01 | |
Accrued fixed price, final | 5.39 | |
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Changyou Merger [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Consideration Per Share | 5.4 | |
Exercise prices of option granted | 0.01 | |
Accrued fixed price, final | 5.39 | |
Accrued fixed price, initial | 5.39 | |
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Award vesting period | 4 years | |
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Changyou Merger [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accrued fixed price, final | 5.39 | |
Accrued fixed price, initial | 5.39 | |
Changyou [Member] | Changyou 2014 and 2019 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | four equal installments | |
Award vesting period | 4 years | |
Changyou [Member] | Changyou 2014 and 2019 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Changyou Merger [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accrued fixed price, final | 5.39 | |
Accrued fixed price, initial | $ 5.39 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Taxation&Net Income/(Loss) per Share&Short-term Investments&Long-term Time Deposits) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 17, 2020 | |
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10% | ||||||
Statutory income tax rate | 25% | 25% | 25% | ||||
Sohu [Member] | Ordinary Shares [Member] | Changyou [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Effective Interest held | 100% | ||||||
Sohu [Member] | Ordinary Shares [Member] | Changyou [Member] | Changyou Merger [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Effective Interest held | 100% | ||||||
Minimum [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Percentage of equity interests held in other enterprise | 25% | ||||||
Minimum [Member] | Time Deposits [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Restricted Investment Maturity Period | 3 months | ||||||
Minimum [Member] | Long-term time deposits [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Restricted Investment Maturity Period | 1 year | ||||||
Maximum [Member] | Time Deposits [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Restricted Investment Maturity Period | 1 year | ||||||
Thereafter tax years after December 31,2017 [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Statutory income tax rate | 21% | ||||||
Prior tax years before December 31,2017 [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Statutory income tax rate | 35% | ||||||
HONG KONG | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5% | ||||||
Statutory income tax rate | 16.50% | 16.50% | 16.50% | ||||
UNITED STATES | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Provisional amount of income tax expense recognized for the Toll Charge | $ 219 | ||||||
Reduction in liability for deferred income tax | $ 4 | ||||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 77 | ||||||
Unrecognized tax benefit recorded | $ 142 | ||||||
Interest in connection with unrecognized tax benefit | $ 13 | $ 8 | $ 5 | ||||
UNITED STATES | Thereafter tax years after December 31,2017 [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Statutory income tax rate | 21% | ||||||
UNITED STATES | Prior tax years before December 31,2017 [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Statutory income tax rate | 35% | ||||||
CHINA | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10% | ||||||
State Administration of Taxation, China [Member] | Minimum [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Value-added tax rate | 6% | ||||||
State Administration of Taxation, China [Member] | Maximum [Member] | |||||||
Taxation&Net Income/(Loss) per Share&Short-term Investments[Line Items] | |||||||
Value-added tax rate | 13% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Schedule Of Account Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Accounts receivable | $ 83,762 | $ 81,453 | ||
Allowance for credit losses | (12,144) | (13,912) | $ (12,358) | $ (7,007) |
Accounts receivable, net | $ 71,618 | $ 67,541 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Schedule Of Aging Analysis of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable Current Overdue Details [Line Items] | ||
Accounts receivable | $ 83,762 | $ 81,453 |
Less than 179 days [Member] | ||
Accounts Receivable Current Overdue Details [Line Items] | ||
Accounts receivable | 65,304 | 63,744 |
180-359 days [Member] | ||
Accounts Receivable Current Overdue Details [Line Items] | ||
Accounts receivable | 6,684 | 4,526 |
360 days and greater [Member] | ||
Accounts Receivable Current Overdue Details [Line Items] | ||
Accounts receivable | $ 11,774 | $ 13,183 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Schedule of The Movement of Allowance For Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Beginning balance | $ 13,912 | $ 12,358 | $ 7,007 |
Additional allowance for credit losses, net of recoveries | (551) | 3,279 | 6,292 |
Write-offs | (976) | (585) | (1,155) |
Exchange difference | (241) | (1,140) | 214 |
Ending balance | $ 12,144 | $ 13,912 | $ 12,358 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Estimated Useful Lives of Fixed Assets) (Details) | Dec. 31, 2023 USD ($) |
Office buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, residual value | $ 0 |
Office buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 47 years |
Office buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 36 years |
Computer equipment and hardware [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, residual value | $ 0 |
Computer equipment and hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 5 years |
Computer equipment and hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 4 years |
Leasehold and building improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, residual value | $ 0 |
Estimated Useful Lives | Leasehold and building improvements [Member] |
Office furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, residual value | $ 0 |
Estimated Useful Lives (years) | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets, residual value | $ 0 |
Estimated Useful Lives (years) | 4 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Operating rights for licensed games [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, residual value | $ 0 |
Estimated Useful Lives (years) | over the contract terms |
Purchased video content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, residual value | $ 0 |
Estimated Useful Lives (years) | 1 month to 2 years |
Domain names and trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, residual value | $ 0 |
Estimated Useful Lives (years) | 4-30 |
Computer software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, residual value | $ 0 |
Estimated Useful Lives (years) | 1-3 |
Developed technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, residual value | $ 0 |
Estimated Useful Lives (years) | 3-10 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 48 Months Ended | ||||
Aug. 10, 2023 | Sep. 23, 2021 | Jan. 31, 2011 | May 31, 2010 | Sep. 23, 2021 | Dec. 31, 2021 | [1] | Dec. 31, 2022 | |
Sogou [Member] | ||||||||
Discontinued Operations [Line Items] | ||||||||
Depreciation and amortization expense | $ 46,700,000 | |||||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income | Net income from discontinued operations, net of tax | |||||||
Disposal gain/loss | $ 855,000,000 | $ 855,009,000 | ||||||
Changyou [Member] | ||||||||
Discontinued Operations [Line Items] | ||||||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income | Net income from discontinued operations, net of tax | |||||||
Disposal gain/loss | $ 35,400,000 | $ 0 | ||||||
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | Cinema Advertising [Member] | ||||||||
Discontinued Operations [Line Items] | ||||||||
Percentage of acquired equity interests | 50% | 50% | ||||||
[1]Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Discontinued Operations (Compre
Discontinued Operations (Comprehensive Income Information of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 23, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Operating expenses: | ||||||
Net income from discontinued operations, net of tax | $ 35,426 | $ 0 | $ 864,902 | |||
Sogou [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Revenues | [1] | 407,607 | ||||
Cost of revenues | [1] | 274,408 | ||||
Gross profit | [1] | 133,199 | ||||
Operating expenses: | ||||||
Operating expenses | [1] | 206,841 | ||||
Operating loss | [1] | (73,642) | ||||
Interest income | [1] | 2,377 | ||||
Interest expense | [1] | (761) | ||||
Foreign currency exchange loss | [1] | (848) | ||||
Other income, net | [1] | 81,655 | ||||
Income from discontinued operations before income tax expense | [1] | 8,781 | ||||
Income tax benefit | [1] | (1,112) | ||||
Results of operations from discontinued operations, net of tax | [1] | 9,893 | ||||
Gain on disposal of discontinued operations | $ 855,000 | 855,009 | [1] | |||
Net income from discontinued operations, net of tax | [1] | 864,902 | ||||
Sogou [Member] | Research and development [Member] | ||||||
Operating expenses: | ||||||
Operating expenses | [1],[2] | 141,506 | ||||
Sogou [Member] | Sales and marketing [Member] | ||||||
Operating expenses: | ||||||
Operating expenses | [1],[2] | 53,481 | ||||
Sogou [Member] | General and administrative [Member] | ||||||
Operating expenses: | ||||||
Operating expenses | [1],[2] | $ 11,854 | ||||
[1]Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021.[2]Expenses generated from marketing services between the Sohu Group and Sogou, and leasing expenses generated from a building that Sohu leased to Sogou were not eliminated because those expenses continued after the disposal of the discontinued operations. |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Effective Income tax Rate Of Discontinued Operations) (Details) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Effective Income Tax Rate Discontinued Operations Tax Rate Reconciliation | ||||
Statutory Rate: | 25% | 25% | 25% | |
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 44% | 0% | 3% | |
Sogou [Member] | ||||
Effective Income Tax Rate Discontinued Operations Tax Rate Reconciliation | ||||
Statutory Rate: | [1],[2] | 25% | ||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | [1],[2] | 127% | ||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | [1],[2] | (90.00%) | ||
Changes in valuation allowance for deferred tax assets | [1],[2] | 349% | ||
Research and development super-deduction and other permanent book-tax differences | [1],[2] | (249.00%) | ||
Capital gains from equity investments | [1],[2] | (175.00%) | ||
Effective Income Tax Rate Discontinued Operations | [1],[2] | (13.00%) | ||
[1]Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021.[2]The changes in the effective tax rate for the period ended September 23, 2021 resulted from the lower income from discontinued operations before income tax expense. |
Discontinued Operations (Cash F
Discontinued Operations (Cash Flow Information of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Discontinued Operations [Line Items] | ||||
Net cash used in discontinued operating activities | $ 0 | $ 0 | $ (175,888) | |
Net cash provided by discontinued investing activities | 0 | 0 | 1,054,148 | |
Net cash used in discontinued financing activities | $ 0 | $ 0 | (9,132) | |
Sogou [Member] | ||||
Discontinued Operations [Line Items] | ||||
Net cash used in discontinued operating activities | [1] | (175,888) | ||
Net cash provided by discontinued investing activities | [1] | 1,054,148 | ||
Net cash used in discontinued financing activities | [1] | $ (9,132) | ||
[1]Includes the financial results of the discontinued operations from January 1, 2021 to September 23, 2021. |
Segment Information (Segment Op
Segment Information (Segment Operating Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 600,672 | $ 733,872 | $ 835,576 | ||||
Segment cost of revenues | (145,740) | [1] | (191,382) | [2] | (204,394) | [3] | |
Segment gross profit | 454,932 | 542,490 | 631,182 | ||||
SBC in cost of revenues | [4] | (17) | (191) | (277) | |||
Gross profit | 454,915 | 542,299 | 630,905 | ||||
Operating expenses: | |||||||
Product development | (279,686) | [1] | (258,746) | [2] | (264,959) | [3] | |
Sales and marketing | (213,423) | [1] | (225,352) | [2] | (182,522) | [3] | |
General and administrative | (48,425) | [1] | (54,326) | [2] | (77,651) | [3] | |
SBC in operating expenses | [4] | (691) | (4,748) | (8,301) | |||
Total operating expenses | (542,225) | (543,172) | (533,433) | ||||
Operating profit/(loss) | (87,310) | (873) | 97,472 | ||||
Other income, net | 35,746 | 17,643 | 29,416 | ||||
Interest income | 45,222 | 17,311 | 15,641 | ||||
Interest expense | 0 | 0 | (7,500) | ||||
Exchange difference | 692 | 6,524 | (3,462) | ||||
Income/(loss) before income tax expense | (5,650) | 40,605 | 131,567 | ||||
Income tax expense | (60,420) | (57,946) | (62,296) | ||||
Net income/(loss) from continuing operations | (66,070) | (17,341) | 69,271 | ||||
Net income from discontinued operations | 35,426 | 0 | 864,902 | ||||
Net income/(loss) | (30,644) | (17,341) | 934,173 | ||||
Operating Segments [Member] | Sohu [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 116,228 | 141,586 | 186,606 | ||||
Segment cost of revenues | (78,858) | [1] | (98,373) | [2] | (113,881) | [3] | |
Segment gross profit | 37,370 | 43,213 | 72,725 | ||||
SBC in cost of revenues | [4] | (7) | (47) | (1) | |||
Gross profit | 37,363 | 43,166 | 72,724 | ||||
Operating expenses: | |||||||
Product development | (127,038) | [1] | (120,431) | [2] | (113,186) | [3] | |
Sales and marketing | (174,526) | [1] | (167,837) | [2] | (126,126) | [3] | |
General and administrative | (25,045) | [1] | (32,494) | [2] | (36,949) | [3] | |
SBC in operating expenses | [4] | (89) | (630) | (804) | |||
Total operating expenses | (326,698) | (321,392) | (277,065) | ||||
Operating profit/(loss) | (289,335) | (278,226) | (204,341) | ||||
Operating Segments [Member] | Changyou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 484,709 | 592,286 | 648,970 | ||||
Segment cost of revenues | (66,882) | [1] | (93,009) | [2] | (90,517) | [3] | |
Segment gross profit | 417,827 | 499,277 | 558,453 | ||||
SBC in cost of revenues | [4] | (10) | (144) | (276) | |||
Gross profit | 417,817 | 499,133 | 558,177 | ||||
Operating expenses: | |||||||
Product development | (152,911) | [1] | (138,315) | [2] | (151,773) | [3] | |
Sales and marketing | (38,899) | [1] | (57,515) | [2] | (56,396) | [3] | |
General and administrative | (23,380) | [1] | (21,832) | [2] | (40,702) | [3] | |
SBC in operating expenses | [4] | (602) | (4,118) | (7,497) | |||
Total operating expenses | (215,792) | (221,780) | (256,368) | ||||
Operating profit/(loss) | 202,025 | 277,353 | 301,809 | ||||
Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (265) | 0 | 0 | ||||
Segment cost of revenues | 0 | [1] | 0 | [2] | 4 | [3] | |
Segment gross profit | (265) | 0 | 4 | ||||
SBC in cost of revenues | [4] | 0 | 0 | 0 | |||
Gross profit | (265) | 0 | 4 | ||||
Operating expenses: | |||||||
Product development | 263 | [1] | 0 | [2] | 0 | [3] | |
Sales and marketing | 2 | [1] | 0 | [2] | 0 | [3] | |
General and administrative | 0 | [1] | 0 | [2] | 0 | [3] | |
SBC in operating expenses | [4] | 0 | 0 | 0 | |||
Total operating expenses | 265 | 0 | 0 | ||||
Operating profit/(loss) | $ 0 | $ 0 | $ 4 | ||||
[1]Total depreciation and amortization expenses of Sohu and Changyou were $18.8 million and $11.4 million, respectively, for the year ended December 31, 2023.[2]Total depreciation and amortization expenses of Sohu and Changyou were $19.8 million and $11.5 million, respectively, for the year ended December 31, 2022.[3]Total depreciation and amortization expenses of Sohu and Changyou were $23.4 million and $12.6 million, respectively, for the year ended December 31, 2021.[4]“SBC” stands for share-based compensation expense. |
Segment Information (Segment _2
Segment Information (Segment Operating Information by Segment) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sohu [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expenses | $ 18.8 | $ 19.8 | $ 23.4 |
Changyou [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expenses | $ 11.4 | $ 11.5 | $ 12.6 |
Segment Information (Segment As
Segment Information (Segment Assets Information by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | $ 362,504 | $ 697,821 | |||
Accounts receivable, net | 71,618 | 67,541 | |||
Fixed assets, net | 269,058 | [1] | 288,226 | [2] | |
Total assets | [3] | 1,882,098 | 1,977,776 | ||
Operating Segments [Member] | Sohu [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 189,998 | 466,976 | |||
Accounts receivable, net | 32,673 | 38,969 | |||
Fixed assets, net | 137,820 | [1] | 148,447 | [2] | |
Total assets | [3] | 3,100,491 | 1,891,414 | ||
Operating Segments [Member] | Changyou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 172,506 | 230,845 | |||
Accounts receivable, net | 38,945 | 28,572 | |||
Fixed assets, net | 131,238 | [1] | 139,779 | [2] | |
Total assets | [3] | 2,950,224 | 2,572,768 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Fixed assets, net | 0 | [1] | 0 | [2] | |
Total assets | [3] | $ (4,168,617) | $ (2,486,406) | ||
[1]Total additions to fixed assets of Sohu and Changyou were $1.1 million and $1.2 million, respectively, for the year ended December 31, 2023.[2]Total additions to fixed assets of Sohu and Changyou were $4.6 million and $1.0 million, respectively, for the year ended December 31, 2022.[3]The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs, and elimination of intra-Group loans between Sohu and Changyou. |
Segment Information (Segment _3
Segment Information (Segment Assets Information by Segment) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changyou [Member] | ||
Segment Reporting Information [Line Items] | ||
Addition to property plant and equipment made during the period | $ 1.2 | $ 1 |
Sohu [Member] | ||
Segment Reporting Information [Line Items] | ||
Addition to property plant and equipment made during the period | $ 1.1 | $ 4.6 |
Share-based Compensation Expe_3
Share-based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 708 | $ 4,939 | $ 8,578 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 17 | 191 | 277 |
Product development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 156 | 2,026 | 3,904 |
Sales and marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 26 | 128 | 166 |
General and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 509 | $ 2,594 | $ 4,231 |
Share-based Compensation Expe_4
Share-based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu (excluding Fox Video), Changyou and Fox Video) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 708,000 | $ 4,939,000 | $ 8,578,000 |
Capitalized share-based compensation expense | 0 | 0 | 0 |
Sohu (excluding Fox Video) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 96,000 | 677,000 | 1,849,000 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 612,000 | 4,262,000 | 7,773,000 |
Fox Video [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | $ 0 | $ (1,044,000) |
Advertising and Promotional E_2
Advertising and Promotional Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ADVERTISING AND PROMOTIONAL EXPENSES [Abstract] | |||
Advertising and promotional expenses | $ 138.3 | $ 151.5 | $ 98.5 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
OTHER INCOME, NET [Abstract] | ||||||||
Government grant | $ 17,486 | $ 4,608 | $ 418 | |||||
Rental income - from properties owned by Sohu | [1] | 7,530 | 10,025 | 10,427 | ||||
Income from short-term investments | 4,709 | 13,430 | 5,260 | |||||
Additional deduction of Chinese mainland value-added tax and individual tax refunds | 2,486 | 4,952 | 4,827 | |||||
Investment income/(loss) | 1,707 | (5,381) | 6,352 | |||||
Donations | 0 | (31) | (1,565) | |||||
Impairment loss on equity investments | $ (12,000) | (283) | [2] | (11,954) | [2] | (215) | [2] | |
Others | 2,111 | 1,994 | 3,912 | |||||
Total | $ 35,746 | $ 17,643 | $ 29,416 | |||||
[1]Sogou leased from Sohu, on an arms-length basis, office space at Sohu.com Internet Plaza under a lease that expired on December 31, 2022. Since 2023, the Company has leased this entire building to third-party tenants.[2]In the fourth quarter of 2022, the Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer. |
Other Income, Net (Narrative) (
Other Income, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
OTHER INCOME, NET [Abstract] | |||||||
Impairment loss | $ 12,000 | $ 283 | [1] | $ 11,954 | [1] | $ 215 | [1] |
[1]In the fourth quarter of 2022, the Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer. |
Balance Sheet Components Accoun
Balance Sheet Components Account and Financing Receivables, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, net | ||||
Accounts receivable | $ 83,762 | $ 81,453 | ||
Allowance for credit losses | (12,144) | (13,912) | $ (12,358) | $ (7,007) |
Accounts receivable, net | $ 71,618 | $ 67,541 |
Balance Sheet Components Other
Balance Sheet Components Other Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Prepaid and other current assets | |||
Matching loans due from a related party (See Note 9) | $ 33,665 | $ 34,123 | |
Prepaid taxes | 17,183 | 11,468 | |
Prepaid revenue-sharing costs | 12,400 | 12,552 | |
Prepaid content and license costs | [1] | 5,964 | 7,349 |
Prepaid professional fees | 1,970 | 1,999 | |
Receivables from third party payment platforms | 1,144 | 1,711 | |
Prepaid rental deposits | 1,126 | 1,717 | |
Prepaid advertising and promotion fees | 645 | 3,437 | |
Employee advances | 534 | 1,023 | |
Interest receivable from bank deposits with original maturities of three months or less | 447 | 430 | |
Prepaid office rent and facilities expenses | 290 | 320 | |
Others | 6,603 | 6,964 | |
Prepaid and other current assets | 81,971 | 83,093 | |
Other short-term liabilities | |||
Matching loans due to a related party (See Note 9) | 34,123 | 34,123 | |
Share-based awards in Changyou (See Note 18) | 27,831 | 26,906 | |
Deposits from customers | 10,187 | 11,100 | |
Contract deposits from advertisers | 1,743 | 2,030 | |
Lease liabilities | $ 1,187 | $ 2,039 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other short-term liabilities | Other short-term liabilities | |
Consideration payable for equity investments | $ 695 | $ 707 | |
Contingent liability related to Shanghai Jingmao liquidation | [2] | 0 | 21,172 |
Other payables related to Shanghai Jingmao liquidation | [3] | 0 | 8,587 |
Others | 5,716 | 7,868 | |
Other short-term liabilities | 81,482 | 114,532 | |
Receipts in advance and deferred revenue | |||
Receipts in advance | 10,524 | 12,672 | |
Deferred revenue | 40,305 | 35,408 | |
Receipts in advance and deferred revenue | 50,829 | 48,080 | |
Brand advertising business [Member] | |||
Receipts in advance and deferred revenue | |||
Receipts in advance | 2,527 | 2,696 | |
Online game business [Member] | |||
Receipts in advance and deferred revenue | |||
Receipts in advance | 3,050 | 5,636 | |
Other business [Member] | |||
Receipts in advance and deferred revenue | |||
Receipts in advance | $ 4,947 | $ 4,340 | |
[1]Changyou recognized impairment losses of $5.8 million and $2.0 million for prepaid and other current assets related to content and game licenses for 2023 and 2022, respectively.[2]The contingent liability represented the aggregate of estimated potential payments to third parties in connection with the liquidation of Shanghai Jingmao. The stated amount of the contingent liability reflected Changyou’s best estimate as of December 31, 2022 pursuant to ASC 450-20. In August 2023, the bankruptcy proceeding was concluded by the court, and the likelihood of the Company’s being required to pay such contingent liability became remote. As a result, Changyou reversed such previously recorded contingent liability and recognized the same amount as disposal gain.[3]As of December 31, 2022, the stated amount in other payables represented the aggregate amount that Changyou received from the bankruptcy proceedings as a creditor of Shanghai Jingmao during the process of the liquidation of Shanghai Jingmao. In August 2023, as the bankruptcy proceeding was concluded by the court, Changyou reversed those payables and recognized the same amount, together with an additional distribution of $5.2 million received in 2023, as disposal gain. |
Balance Sheet Components Othe_2
Balance Sheet Components Other Assets and Liabilities (Parenthetical) (Details) - Changyou [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Content And Game License Intangible Assets [Member] | ||
Balance Sheet Components [Line Items] | ||
Prepaid and other current assets impairment losses | $ 5.8 | $ 2 |
Shanghai Jingmao and Its Affiliate [Member] | Other Nonoperating Income (Expense) [Member] | ||
Balance Sheet Components [Line Items] | ||
Gain on settlement of claims for entities not in bankruptcy | $ 5.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Feb. 28, 2016 | Apr. 30, 2015 | Aug. 31, 2014 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Other short-term liabilities | $ 34,123 | $ 34,123 | |||
Matching loan due from a related party | 33,665 | $ 34,123 | |||
Sohu [Member] | Fox Financial Technology Group Limited [Member] | |||||
Related Party Transaction [Line Items] | |||||
Investment amount in period | $ 10,500 | $ 16,100 | $ 4,800 | ||
Sohu [Member] | Changyou [Member] | Fox Financial Technology Group Limited [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Matching loan due from a related party | 33,700 | ||||
Sohu [Member] | Changyou [Member] | Fox Financial Technology Group Limited [Member] | Other Current Liabilities [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other short-term liabilities | $ 34,100 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 169,240,000 | $ 541,393,000 |
Short-term investments | 597,770,000 | 473,624,000 |
Equity investments with readily determinable fair values | 3,208,000 | |
Debt investments | 22,945,000 | 0 |
Long-term time deposits | 388,613,000 | 265,802,000 |
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 |
Short-term investments | 0 | 0 |
Equity investments with readily determinable fair values | 3,208,000 | |
Debt investments | 0 | |
Long-term time deposits | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 169,240,000 | 541,393,000 |
Short-term investments | 597,770,000 | 473,624,000 |
Equity investments with readily determinable fair values | 0 | |
Debt investments | 0 | |
Long-term time deposits | 388,613,000 | 265,802,000 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Equity investments with readily determinable fair values | 0 | |
Debt investments | 22,945,000 | |
Long-term time deposits | $ 0 | $ 0 |
Fair Value Measurements (Short-
Fair Value Measurements (Short-term Investments, Long-term Investments and Long-term Time Deposits) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investments in financial instruments | $ 473,624,000 | $ 597,770,000 | $ 473,624,000 | ||||
Debt investment | 0 | 22,945,000 | 0 | ||||
Impairment loss | 12,000,000 | $ 283,000 | [1] | 11,954,000 | [1] | $ 215,000 | |
Time deposits [Member] | Minimum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Restricted investment maturity period | 3 months | ||||||
Time deposits [Member] | Maximum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Restricted investment maturity period | 1 year | ||||||
Long-term time deposits [Member] | Debt Securities [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value change gain | $ 800,000 | ||||||
Long-term time deposits [Member] | Minimum [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Restricted investment maturity period | 1 year | ||||||
Fair Value, Measurements, Recurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investments in financial instruments | $ 473,600,000 | $ 597,800,000 | 473,600,000 | ||||
Change in fair value of short-term investments | 4,700,000 | 13,400,000 | |||||
Impairment loss | $ 300,000 | $ 12,000,000 | |||||
[1]In the fourth quarter of 2022, the Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | $ 261 | $ 2,263 |
Intangible assets, net | 2,226 | 5,394 |
Goodwill | 47,163 | 47,415 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 261 | 2,263 |
Intangible assets, net | 2,226 | 5,394 |
Goodwill | $ 47,163 | $ 47,415 |
Fair Value Measurements (Long-t
Fair Value Measurements (Long-term Payables, Narrative) (Details) - $ / shares | Dec. 31, 2023 | Apr. 17, 2020 |
Changyou [Member] | Share Options [Member] | Common Class A [Member] | Changyou Merger [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed price of share | $ 5.39 | $ 5.39 |
Leases (Component of Operating
Leases (Component of Operating Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASES [Abstract] | ||
Operating lease expense | $ 2,383 | $ 2,737 |
Short-term lease expense | 307 | 83 |
Total operating lease expense | $ 2,690 | $ 2,820 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases Cash Paid For Amounts Included In the Measurement Of Lease Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASES [Abstract] | ||
Operating cash flows from operating leases | $ 2,314 | $ 2,788 |
Leases (Supplemental Cash Flo_2
Leases (Supplemental Cash Flow Information Related to Leases Right-of-use Assets Obtained In Exchange For Lease Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASES [Abstract] | ||
Operating leases | $ 3,114 | $ 126 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related to the Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease right-of-use assets | $ 3,348 | $ 2,479 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Liabilities: | ||
Current lease liabilities | $ 1,187 | $ 2,039 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current |
Non-current lease liabilities | $ 2,130 | $ 340 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Long Term Liabilities | Other Long Term Liabilities |
Total operating lease liabilities | $ 3,317 | $ 2,379 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Liabilities | Liabilities |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities under Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LEASES [Abstract] | ||
2024 | $ 1,314 | |
2025 | 1,274 | |
2026 | 1,013 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total future lease payments | 3,601 | |
Less: imputed interest | 284 | |
Total present value of lease liabilities | $ 3,317 | $ 2,379 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Liabilities | Liabilities |
Weighted average remaining lease term | 2 years 8 months 12 days | |
Weighted average discount rate | 4.80% | |
Liabilities for leases | $ 1,800 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, gross | $ 494,390 | $ 521,310 | |||
Accumulated depreciation | (225,332) | (233,084) | |||
Fixed assets, net | 269,058 | [1] | 288,226 | [2] | |
Depreciation expenses for fixed assets | 16,621 | 19,990 | $ 23,495 | ||
Office buildings [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, gross | 361,172 | 367,296 | |||
Computer equipment and hardware [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, gross | 91,183 | 110,416 | |||
Leasehold and building improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, gross | 33,704 | 34,212 | |||
Office furniture [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, gross | 5,374 | 6,301 | |||
Vehicles [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Fixed assets, gross | $ 2,957 | $ 3,085 | |||
[1]Total additions to fixed assets of Sohu and Changyou were $1.1 million and $1.2 million, respectively, for the year ended December 31, 2023.[2]Total additions to fixed assets of Sohu and Changyou were $4.6 million and $1.0 million, respectively, for the year ended December 31, 2022. |
Goodwill (Carrying Value of Goo
Goodwill (Carrying Value of Goodwill by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 249,947 | $ 251,343 |
Accumulated impairment losses, Beginning Balance | (202,532) | (202,532) |
Goodwill, Net, Beginning Balance | 47,415 | 48,811 |
Foreign currency translation adjustment | (252) | (1,396) |
Goodwill, Ending balance | 249,695 | 249,947 |
Accumulated impairment losses, Ending balance | (202,532) | (202,532) |
Goodwill, Net, Ending balance | 47,163 | 47,415 |
Operating Segments [Member] | Sohu [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 69,404 | 70,800 |
Accumulated impairment losses, Beginning Balance | (32,246) | (32,246) |
Goodwill, Net, Beginning Balance | 37,158 | 38,554 |
Foreign currency translation adjustment | (252) | (1,396) |
Goodwill, Ending balance | 69,152 | 69,404 |
Accumulated impairment losses, Ending balance | (32,246) | (32,246) |
Goodwill, Net, Ending balance | 36,906 | 37,158 |
Operating Segments [Member] | Changyou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 180,543 | 180,543 |
Accumulated impairment losses, Beginning Balance | (170,286) | (170,286) |
Goodwill, Net, Beginning Balance | 10,257 | 10,257 |
Foreign currency translation adjustment | 0 | 0 |
Goodwill, Ending balance | 180,543 | 180,543 |
Accumulated impairment losses, Ending balance | (170,286) | (170,286) |
Goodwill, Net, Ending balance | $ 10,257 | $ 10,257 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) | Dec. 31, 2023 |
GOODWILL [Abstract] | |
Percentage increase decrease in one of the assumptions to determine impairment status | 5% |
Intangible Assets, Net (Finite-
Intangible Assets, Net (Finite-lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 151,880 | $ 175,690 |
Accumulated Amortization | (100,144) | (112,392) |
Accumulated Impairment | (49,510) | (57,904) |
Net Carrying Amount | 2,226 | 5,394 |
Purchased video content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,998 | 71,753 |
Accumulated Amortization | (37,502) | (49,920) |
Accumulated Impairment | (13,097) | (20,885) |
Net Carrying Amount | 399 | 948 |
Operating rights for licensed games [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 56,724 | 56,283 |
Accumulated Amortization | (42,857) | (39,638) |
Accumulated Impairment | (12,513) | (12,728) |
Net Carrying Amount | 1,354 | 3,917 |
Domain names and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,832 | 24,867 |
Accumulated Amortization | (6,974) | (9,752) |
Accumulated Impairment | (14,858) | (15,110) |
Net Carrying Amount | 0 | 5 |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,538 | 11,832 |
Accumulated Amortization | (11,065) | (11,308) |
Accumulated Impairment | 0 | 0 |
Net Carrying Amount | 473 | 524 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,092 | 8,212 |
Accumulated Amortization | (857) | (869) |
Accumulated Impairment | (7,235) | (7,343) |
Net Carrying Amount | 0 | 0 |
Others [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,696 | 2,743 |
Accumulated Amortization | (889) | (905) |
Accumulated Impairment | (1,807) | (1,838) |
Net Carrying Amount | $ 0 | $ 0 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 13.6 | $ 11.3 | $ 12.5 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Amortization Expenses for Future Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
2024 | $ 1,841 | |
2025 | 363 | |
2026 | 22 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total expected amortization expense | $ 2,226 | $ 5,394 |
Taxation (PRC Corporate Income
Taxation (PRC Corporate Income Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 25% | 25% | 25% |
Hong Kong [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 16.50% | 16.50% | 16.50% |
State Administration of Taxation, China [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 25% | ||
Description of tax exemption and tax reduction rate | Software Enterprise is entitled to 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. | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
Preferential income tax rate period (years) | 3 years | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Video Tianjin [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sohu Internet [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Guangzhou Qianjun [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sohu New Momentum [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sohu Media [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Gamease [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | AmazGame [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Gamespace [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Changyou Chuangxiang [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15% |
Taxation (U.S. Corporate Income
Taxation (U.S. Corporate Income Tax) (Details) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax and Tax Rate [Line Items] | |||||
Statutory income tax rate | 25% | 25% | 25% | ||
Thereafter tax years [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Statutory income tax rate | 21% | ||||
Prior tax years [Member] | |||||
Income Tax and Tax Rate [Line Items] | |||||
Statutory income tax rate | 35% |
Taxation (Treatment of Toll Cha
Taxation (Treatment of Toll Charge Related to the U.S. TCJA) (Details) - United States - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax and Tax Rate [Line Items] | |||||
Provisional amount of income tax expense recognized for the Toll Charge | $ 219 | ||||
Reduction in liability for deferred income tax | $ 4 | ||||
Recognition of previously unrecognized tax benefit | $ 77 | ||||
Unrecognized tax benefit recorded | $ 142 | ||||
Interest in connection with unrecognized tax benefit | $ 13 | $ 8 | $ 5 |
Taxation (Components of Income
Taxation (Components of Income before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income/(loss) before income tax expense | |||
Income/(loss) from Chinese mainland operations | $ (22,560) | $ 37,146 | $ 153,708 |
Income/(loss) from non-Chinese mainland operations | 16,910 | 3,459 | (22,141) |
Income/(loss) before income tax expense | (5,650) | 40,605 | 131,567 |
Income tax expense applicable to Chinese mainland operations | |||
Current tax | 22,701 | 27,735 | 31,089 |
Deferred tax | 24,728 | 22,524 | 26,207 |
Subtotal income tax expense applicable to Chinese mainland operations | 47,429 | 50,259 | 57,296 |
Non-Chinese mainland income tax expense | 12,850 | 7,534 | 4,817 |
Non-Chinese mainland withholding tax expense | 141 | 153 | 183 |
Total income tax expense from continuing operations | 60,420 | 57,946 | 62,296 |
CHINA | |||
Income tax expense applicable to Chinese mainland operations | |||
Total income tax expense from continuing operations | 47,400 | 50,300 | 57,300 |
Accrued Income Taxes | 36,800 | 46,600 | 48,400 |
United States | |||
Income tax expense applicable to Chinese mainland operations | |||
Non-Chinese mainland income tax expense | $ 13,000 | $ 8,000 | $ 5,000 |
Taxation (Combined Effects of I
Taxation (Combined Effects of Income Tax Exemption and Reduction) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION [Abstract] | |||
Tax holiday effect | $ (18,961) | $ (6,282) | $ 1,635 |
Basic net income/(loss) per share effect | $ (0.56) | $ (0.18) | $ 0.04 |
Taxation (Effective Tax Rate) (
Taxation (Effective Tax Rate) (Details) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Taxation [Line Items] | ||||||
Statutory Rate: | 25% | 25% | 25% | |||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | [1] | (335.00%) | 15% | (1.00%) | ||
Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs | 44% | 0% | 3% | |||
Effect of withholding taxes | (331.00%) | 56% | 19% | |||
Changes in valuation allowance for deferred tax assets | (1077.00%) | 116% | 31% | |||
Research and development super-deduction | [2] | 737% | (85.00%) | (19.00%) | ||
Others | 95% | (3.00%) | (14.00%) | |||
Effective Tax Rate | (842.00%) | 124% | 44% | |||
Prior tax years [Member] | ||||||
Taxation [Line Items] | ||||||
Statutory Rate: | 35% | |||||
Thereafter tax years [Member] | ||||||
Taxation [Line Items] | ||||||
Statutory Rate: | 21% | |||||
[1]The change in the regular 25% rate of income tax to preferential income tax rates that Changyou’s subsidiaries and VIEs were entitled to as Software Enterprises for 2021 and 2022 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table.[2]Under Chinese mainland regulations issued in September 2022 that were applicable from October 1, 2022 to December 31, 2022, additional research and development expenses were eligible for deduction from taxable income. |
Taxation (Chinese Mainland With
Taxation (Chinese Mainland Withholding Tax on Dividends) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Withholding tax on dividends [Line Items] | ||
Withholding income tax rate on dividends, foreign invested enterprises to foreign holding companies | 10% | |
Deferred tax liabilities related to withholding tax | $ 253,482 | $ 239,013 |
Total amount of undistributed profits | 497,600 | |
Unrecognized tax liabilities | $ 49,800 | |
Minimum [Member] | ||
Withholding tax on dividends [Line Items] | ||
Percentage of equity interests held in other enterprise | 25% | |
Changyou [Member] | ||
Withholding tax on dividends [Line Items] | ||
Deferred tax liabilities related to withholding tax | $ 253,500 | |
HONG KONG | ||
Withholding tax on dividends [Line Items] | ||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5% | |
CHINA | ||
Withholding tax on dividends [Line Items] | ||
Withholding income tax rate on dividends, foreign invested enterprises to foreign holding companies | 10% |
Taxation (Chinese Mainland Valu
Taxation (Chinese Mainland Value-Added Tax) (Details) - State Administration of Taxation, China [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Minimum [Member] | |
Value-added tax [Line Items] | |
Value-added tax rate | 6% |
Maximum [Member] | |
Value-added tax [Line Items] | |
Value-added tax rate | 13% |
Taxation (Deferred Tax Assets a
Taxation (Deferred Tax Assets and Liabilities, Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||||
Net operating loss from operations | $ 367,024 | $ 321,230 | ||
Accrued bonus and commissions | 3,475 | 4,724 | ||
Intangible assets transfer | 237 | 337 | ||
Others | 9,472 | 9,938 | ||
Total deferred tax assets | 380,208 | 336,229 | ||
Less: Valuation allowance | (371,532) | (320,589) | $ (289,097) | $ (326,755) |
Net deferred tax assets | 8,676 | 15,640 | ||
Deferred tax liabilities | ||||
Withholding tax for dividend | (253,482) | (239,013) | ||
Others | (8,033) | (8,800) | ||
Total deferred tax liabilities | $ (261,515) | $ (247,813) |
Taxation (Deferred Tax Assets_2
Taxation (Deferred Tax Assets and Liabilities, Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
TAXATION [Abstract] | |
Net operating losses from Chinese mainland entities available to offset against future net profit for income tax purposes | $ 2,300 |
Deferred tax assets generated from net operating losses offset by valuation allowance | 359.1 |
Chinese mainland net operating losses generated from previous years expired | $ 11.1 |
Taxation (Movement of Valuation
Taxation (Movement of Valuation Allowances for Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION [Abstract] | |||
Beginning balance | $ 320,589 | $ 289,097 | $ 326,755 |
Provision for the year | 60,554 | 69,087 | 45,787 |
Reversal for the year | (4,134) | (12,844) | (91,019) |
Foreign currency translation adjustment | (5,477) | (24,751) | 7,574 |
Ending balance | $ 371,532 | $ 320,589 | $ 289,097 |
Taxation (Uncertain Tax Positio
Taxation (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION [Abstract] | |||
Beginning balance | $ 200,228 | $ 193,918 | $ 188,760 |
Increases related to prior year tax positions | 12,850 | 7,534 | 4,827 |
Foreign currency translation adjustment | (219) | (1,224) | 331 |
Ending balance | $ 212,859 | $ 200,228 | $ 193,918 |
Commitments and Contingencies_2
Commitments and Contingencies (Contractual Obligation) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Contractual Obligation [Line Items] | |
2024 | $ 34,081 |
2025 | 2,825 |
2026 | 2,077 |
2027 | 8 |
2028 | 0 |
Thereafter | 0 |
Total Payments Required | 38,991 |
Royalties and expenditures for licensed content of games [Member] | |
Contractual Obligation [Line Items] | |
2024 | 15,224 |
2025 | 1,412 |
2026 | 1,059 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total Payments Required | 17,695 |
Purchase of content and services [Member] | |
Contractual Obligation [Line Items] | |
2024 | 8,029 |
2025 | 290 |
2026 | 23 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total Payments Required | 8,342 |
Purchase of bandwidth [Member] | |
Contractual Obligation [Line Items] | |
2024 | 7,021 |
2025 | 40 |
2026 | 14 |
2027 | 8 |
2028 | 0 |
Thereafter | 0 |
Total Payments Required | 7,083 |
Operating lease obligations [Member] | |
Contractual Obligation [Line Items] | |
2024 | 3,512 |
2025 | 1,083 |
2026 | 981 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total Payments Required | 5,576 |
Others [Member] | |
Contractual Obligation [Line Items] | |
2024 | 295 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total Payments Required | $ 295 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sohu Group, Basic Information for Principal VIEs) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Variable Interest Entity [Line Items] | |
Aggregate amount of loans due from related parties | $ 11.1 |
VIEs [Member] | |
Variable Interest Entity [Line Items] | |
Registered capital and PRC statutory reserves | $ 32.6 |
VIEs [Member] | Subsidiary Or Subsidiaries Of The Variable Interest Entity [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
High Century [Member] | Dr. Charles Zhang [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 80% |
High Century [Member] | Wei Li [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 20% |
Heng Da Yi Tong [Member] | Dr. Charles Zhang [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 80% |
Heng Da Yi Tong [Member] | Wei Li [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 20% |
Sohu Internet [Member] | High Century [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Gamease [Member] | High Century [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Donglin [Member] | Sohu Internet [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Guanyou Gamespace [Member] | Changyou Star [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Changyou Star [Member] | Dewen Chen [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50% |
Changyou Star [Member] | YaoBin Wang [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50% |
Shanghai ICE [Member] | Gamease [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Tianjin Jinhu [Member] | High Century [Member] | Parent [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Focus Interactive [Member] | Heng Da Yi Tong [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
Guangzhou Qianjun [Member] | Tianjin Jinhu [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100% |
VIEs (VIEs Consolidated withi_2
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
ASSETS: | |||||
Cash and cash equivalents | $ 362,504,000 | $ 697,821,000 | |||
Restricted cash | 3,184,000 | 3,641,000 | |||
Short-term investments | 597,770,000 | 473,624,000 | |||
Accounts receivable, net | 71,618,000 | 67,541,000 | |||
Prepaid and other current assets | 81,971,000 | 83,093,000 | |||
Total current assets | 1,117,047,000 | 1,325,720,000 | |||
Fixed assets, net | 269,058,000 | [1] | 288,226,000 | [2] | |
Other non-current assets | 12,793,000 | 19,207,000 | |||
Total assets | 1,882,098,000 | 1,977,776,000 | |||
LIABILITIES: | |||||
Accounts payable | 44,609,000 | 56,449,000 | |||
Accrued liabilities | 103,779,000 | 126,461,000 | |||
Receipts in advance and deferred revenue | 50,829,000 | 48,080,000 | |||
Total current liabilities | 342,392,000 | 416,888,000 | |||
Long-term tax liabilities | 212,859,000 | 200,229,000 | |||
Deferred tax liabilities | 261,515,000 | 247,814,000 | |||
Total liabilities | 822,820,000 | 867,066,000 | |||
Cost of revenues: | |||||
Total cost of revenues | 145,757,000 | 191,573,000 | $ 204,671,000 | ||
Operating expenses: | |||||
Total operating expenses | 542,225,000 | 543,172,000 | 533,433,000 | ||
Net income from continuing operations | (66,070,000) | (17,341,000) | 69,271,000 | ||
Net loss from discontinued operations | 35,426,000 | 0 | 864,902,000 | ||
Cash flows from operating activities: | |||||
Net cash provided by continuing operating activities | (25,567,000) | 32,242,000 | 113,610,000 | ||
Net cash used in discontinued operating activities | 0 | 0 | (175,888,000) | ||
Net cash provided by operating activities | (25,567,000) | 32,242,000 | (62,278,000) | ||
Cash flows from investing activities: | |||||
Net cash provided by/(used in) continuing investing activities | (291,665,000) | (232,789,000) | (537,419,000) | ||
Net cash provided by discontinued investing activities | 0 | 0 | 1,054,148,000 | ||
Net cash provided by/(used in) investing activities | (291,665,000) | (232,789,000) | 516,729,000 | ||
Cash flows from financing activities: | |||||
Net cash provided by/(used in) continuing financing activities | (6,560,000) | (82,136,000) | (424,968,000) | ||
Net cash used in discontinued financing activities | 0 | 0 | (9,132,000) | ||
Net cash provided by/(used in) financing activities | (6,560,000) | (82,136,000) | (434,100,000) | ||
Variable Interest Entity Primary Beneficiary [Member] | |||||
ASSETS: | |||||
Cash and cash equivalents | 6,665,000 | 21,732,000 | |||
Restricted cash | 1,412,000 | 1,838,000 | |||
Short-term investments | 18,743,000 | 4,604,000 | |||
Accounts receivable, net | 32,953,000 | 38,622,000 | |||
Prepaid and other current assets | 5,514,000 | 13,934,000 | |||
Intra-Group receivables due from subsidiaries | 502,353,000 | 594,099,000 | |||
Total current assets | 567,640,000 | 674,829,000 | |||
Fixed assets, net | 203,000 | 352,000 | |||
Other non-current assets | 48,538,000 | 53,450,000 | |||
Total assets | 616,381,000 | 728,631,000 | |||
LIABILITIES: | |||||
Accounts payable | 7,916,000 | 10,909,000 | |||
Accrued liabilities | 28,525,000 | 37,946,000 | |||
Receipts in advance and deferred revenue | 43,958,000 | 40,948,000 | |||
Other current liabilities | 19,484,000 | 22,514,000 | |||
Intra-Group payables due to subsidiaries | 283,083,000 | 402,546,000 | |||
Total current liabilities | 382,966,000 | 514,863,000 | |||
Long-term tax liabilities | 13,021,000 | 13,242,000 | |||
Deferred tax liabilities | 0 | 549,000 | |||
Other non-current liabilities | 1,445,000 | 1,436,000 | |||
Total liabilities | 397,432,000 | 530,090,000 | |||
Revenues: | |||||
Total revenues | 490,485,000 | 619,394,000 | 686,311,000 | ||
Cost of revenues: | |||||
Total cost of revenues | 141,662,000 | 201,486,000 | 217,946,000 | ||
Operating expenses: | |||||
Total operating expenses | 326,871,000 | 402,137,000 | 438,888,000 | ||
Net income from continuing operations | 23,879,000 | 2,691,000 | 35,805,000 | ||
Net loss from discontinued operations | 0 | 0 | (47,924,000) | ||
Cash flows from operating activities: | |||||
Net cash provided by continuing operating activities | 27,169,000 | 3,276,000 | 35,619,000 | ||
Net cash used in discontinued operating activities | 0 | 0 | (1,789,000) | ||
Net cash provided by operating activities | 27,169,000 | 3,276,000 | 33,830,000 | ||
Cash flows from investing activities: | |||||
Net cash provided by/(used in) continuing investing activities | 58,972,000 | 67,076,000 | (164,558,000) | ||
Net cash provided by discontinued investing activities | 0 | 0 | 12,116,000 | ||
Net cash provided by/(used in) investing activities | 58,972,000 | 67,076,000 | (152,442,000) | ||
Cash flows from financing activities: | |||||
Net cash provided by/(used in) continuing financing activities | (101,611,000) | (79,209,000) | 111,888,000 | ||
Net cash used in discontinued financing activities | 0 | 0 | (9,131,000) | ||
Net cash provided by/(used in) financing activities | (101,611,000) | (79,209,000) | 102,757,000 | ||
Variable Interest Entity Primary Beneficiary [Member] | Third-party [Member] | |||||
Revenues: | |||||
Total revenues | 477,202,000 | 591,480,000 | 664,823,000 | ||
Cost of revenues: | |||||
Total cost of revenues | 55,227,000 | 96,603,000 | 81,725,000 | ||
Operating expenses: | |||||
Total operating expenses | 44,059,000 | 72,911,000 | 72,126,000 | ||
Cash flows from operating activities: | |||||
Net cash provided by operating activities | 409,762,000 | 448,936,000 | 541,172,000 | ||
Cash flows from investing activities: | |||||
Net cash provided by/(used in) investing activities | (14,922,000) | (5,421,000) | (23,887,000) | ||
Variable Interest Entity Primary Beneficiary [Member] | Intra-Group [Member] | |||||
Revenues: | |||||
Total revenues | 13,283,000 | 27,914,000 | 21,488,000 | ||
Cost of revenues: | |||||
Total cost of revenues | 86,435,000 | 104,883,000 | 136,221,000 | ||
Operating expenses: | |||||
Total operating expenses | 282,812,000 | 329,226,000 | 366,762,000 | ||
Cash flows from operating activities: | |||||
Net cash provided by operating activities | (382,593,000) | (445,660,000) | (505,553,000) | ||
Cash flows from investing activities: | |||||
Net cash provided by/(used in) investing activities | 73,894,000 | 72,497,000 | (140,671,000) | ||
Cash flows from financing activities: | |||||
Net cash provided by/(used in) financing activities | $ (101,611,000) | $ (79,209,000) | $ 111,888,000 | ||
[1]Total additions to fixed assets of Sohu and Changyou were $1.1 million and $1.2 million, respectively, for the year ended December 31, 2023.[2]Total additions to fixed assets of Sohu and Changyou were $4.6 million and $1.0 million, respectively, for the year ended December 31, 2022. |
VIEs (VIEs Consolidated withi_3
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100% |
Power of attorney term | 10 years |
Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100% |
Power of attorney term | 10 years |
VIEs [Member] | Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Beijing Gamease Age Digital Technology Co., Ltd. ("Gamease") [Member] | Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Beijing Guanyou Gamespace Digital Technology Co., Ltd. ("Guanyou Gamespace") [Member] | Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Beijing Sohu Internet Information Service Co., Ltd. ("Sohu Internet") [Member] | Sohu Era [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 2 years |
Tianjin Jinhu Culture Development Co., Ltd [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Tianjin Jinhu Culture Development Co., Ltd [Member] | Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Donglin [Member] | Sohu Media [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 3 years |
Sohu.com Limited Shareholders_3
Sohu.com Limited Shareholders' Equity (Summary of Sohu.com Limited's Outstanding Shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance, beginning of year | 33,737 | ||
Balance, end of year | 33,049 | 33,737 | |
Sohu.com Limited [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance, beginning of year | 33,737 | 38,221 | 39,306 |
Issuances: | 7 | 25 | 44 |
Repurchases: | (696) | (4,509) | (1,129) |
Balance, end of year | 33,048 | 33,737 | 38,221 |
Sohu.com Limited Shareholders_4
Sohu.com Limited Shareholders' Equity (Treasury Stock, Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 11, 2023 | Nov. 13, 2021 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 02, 2024 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and historical cost during period value | $ 6,560 | $ 80,778 | $ 18,776 | ||||
Additional Paid-in Capital [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and historical cost during period value | $ 0 | $ 99,549 | $ 0 | ||||
ADS [Member] | Sohu Share Repurchase Program [Member] | November 13, 2021 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 100,000 | ||||||
Share repurchase program period | 12 months | ||||||
Stock repurchase program expiration date | Nov. 12, 2022 | ||||||
Number of shares repurchased | 5,637,875 | ||||||
Aggregate cost of shares repurchased | $ 100,000 | ||||||
Stock repurchased and historical cost during period value | $ 100,000 | ||||||
Stock repurchased and retired during period value | 5,638 | ||||||
ADS [Member] | Sohu Share Repurchase Program [Member] | November 13, 2021 [Member] | Additional Paid-in Capital [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and retired during period value | $ 100,000 | ||||||
ADS [Member] | Sohu Share Repurchase Program [Member] | November 11, 2023 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 80,000 | ||||||
Share repurchase program period | 24 months | ||||||
Stock repurchase program expiration date | Nov. 10, 2025 | ||||||
Number of shares repurchased | 695,827 | ||||||
Aggregate cost of shares repurchased | $ 6,600 | ||||||
ADS [Member] | Sohu Share Repurchase Program [Member] | Subsequent Event [Member] | March 02 2024 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 150,000 | ||||||
Common Stock [Member] | Sohu Share Repurchase Program [Member] | November 13, 2021 [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of shares repurchased | 5,637,875 |
Sohu.com Limited Shareholders_5
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Narrative) (Details) - Sohu.com Limited [Member] - shares | 12 Months Ended | ||
Jul. 02, 2010 | Dec. 31, 2023 | Apr. 02, 2018 | |
Sohu 2010 Stock Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of share rights granted under share incentive plan | 10 years | ||
Sohu 2010 Stock Incentive Plan [Member] | Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 1,500,000 | ||
Sohu 2018 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan expiration date | Apr. 30, 2028 | ||
Sohu 2018 Share Incentive Plan [Member] | Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 217,092 | ||
Sohu 2018 Share Incentive Plan [Member] | Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 1,148,565 |
Sohu.com Limited Shareholders_6
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Summary of Share Option Activity, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 31, 2019 | Feb. 28, 2019 | Nov. 30, 2017 | Sep. 30, 2017 | May 31, 2016 | Feb. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 708 | $ 4,939 | $ 8,578 | ||||||||
Sohu.com Limited [Member] | Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Common Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares under contractually granted share options | 6,000 | 32,000 | 13,000 | 1,068,000 | |||||||
Exercise prices of option granted | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Sohu.com Limited [Member] | Sohu 2018 Share Incentive Plan [Member] | Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Installments of share options granted | four equal installments | ||||||||||
Award vesting period | 4 years | ||||||||||
Number of options granted in period | 107,000 | ||||||||||
Total fair value of stock options granted | $ 31,500 | ||||||||||
Share-based compensation expense | 100 | 700 | 1,800 | ||||||||
Total fair values of share options vested | 1,200 | 1,800 | 2,100 | ||||||||
Total intrinsic value of share options exercised | $ 100 | $ 500 | $ 800 | ||||||||
Sohu.com Limited [Member] | Sohu 2018 Share Incentive Plan [Member] | Stock Options [Member] | Common Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares under contractually granted share options | 5,000 | 34,000 | 477,500 | 20,000 | |||||||
Exercise prices of option granted | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Number of options granted in period | 1,142,576 |
Sohu.com Limited Shareholders_7
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Summary of Share Option Activity) (Details) - Sohu.com Limited [Member] - Sohu 2018 Share Incentive Plan [Member] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning balance | shares | 354 |
Number of Shares, Granted | shares | 107 |
Number of Shares, Exercised | shares | (7) |
Number of Shares, Forfeited or expired | shares | 0 |
Number of Shares, Outstanding, Ending balance | shares | 454 |
Number of Shares, Vested, Ending balance | shares | 454 |
Number of Shares, Exercisable, Ending balance | shares | 454 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.001 |
Weighted Average Exercise Price, Granted | $ / shares | 0.001 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.001 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 0.001 |
Weighted Average Exercise Price, Vested, Ending balance | $ / shares | 0.001 |
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 0.001 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 4 years 7 months 6 days |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | 4 years 7 months 6 days |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 4 years 7 months 6 days |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | $ 4,503 |
Aggregate Intrinsic Value, Vested, Ending balance | $ | 4,503 |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | $ 4,503 |
ADS [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing price | $ / shares | $ 9.93 |
Sohu.com Limited Shareholders_8
Sohu.com Limited Shareholders' Equity (Changyou 2014 Share Incentive Plan, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Apr. 17, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 26, 2019 | Jul. 28, 2016 | Jun. 01, 2015 | Feb. 16, 2015 | Nov. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 708 | $ 4,939 | $ 8,578 | ||||||
Changyou 2014 Share Incentive Plan [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of Shares, Granted | 5,884,464 | ||||||||
Total fair value of stock options granted | $ 3,500 | ||||||||
Total fair values of share options vested | $ 3,500 | 4,100 | 4,100 | ||||||
Changyou [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of Shares, Granted | 8,020,504 | ||||||||
Changyou [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Changyou Merger [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise prices of option granted | $ 0.01 | ||||||||
Consideration Per Share | 5.4 | ||||||||
Accrued fixed price, final | 5.39 | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Installments of share options granted | four equal installments | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Changyou Merger [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise prices of option granted | 0.01 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Per Share Fixed Price | 5.39 | ||||||||
Consideration Per Share | 5.4 | ||||||||
Accrued fixed price, final | 5.39 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Accrued Fixed Price Initial | 5.39 | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 100 | $ 2,000 | $ (3,900) | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Plan expiration date | Jun. 30, 2024 | ||||||||
Number of shares under contractually granted share options | 3,023,000 | 100,000 | 1,998,000 | ||||||
Exercise prices of option granted | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Installments of share options granted | four equal installments | ||||||||
Award vesting period | 4 years | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Class A Ordinary Shares [Member] | Minimum [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance | 2,000,000 | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Class A Ordinary Shares [Member] | Maximum [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance | 6,000,000 | ||||||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Class A restricted share units [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares under contractually granted share options | 2,416,000 | ||||||||
Number of Class A restricted share units converted to options | 2,400,000 | ||||||||
Changyou [Member] | Changyou 2014 and 2019 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Installments of share options granted | four equal installments | ||||||||
Award vesting period | 4 years | ||||||||
Changyou [Member] | Changyou 2014 and 2019 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Changyou Merger [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Accrued fixed price, final | 5.39 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Accrued Fixed Price Initial | 5.39 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Not Exercisable in Period, Conditionally Repurchased, Exercise Price | $ 5.39 |
Sohu.com Limited Shareholders_9
Sohu.com Limited Shareholders' Equity (Changyou 2019 Share Incentive Plan, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Apr. 17, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 02, 2021 | Aug. 26, 2019 | Aug. 03, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 708 | $ 4,939 | $ 8,578 | ||||
Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted in period | 2,136,040 | ||||||
Changyou [Member] | Share Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted in period | 8,020,504 | ||||||
Changyou [Member] | Share Options [Member] | Class A ordinary shares [Member] | Changyou Merger [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise prices of option granted | $ 0.01 | ||||||
Accrued fixed price, final | 5.39 | ||||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Toal share based compensation expense | $ 500 | 2,200 | 3,900 | ||||
Total value of share options vested | $ 3,000 | $ 3,400 | $ 2,600 | ||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Installments of share options granted | four equal installments | ||||||
Award vesting period | 4 years | ||||||
Share-based compensation expense | $ 3,000 | ||||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | Class A ordinary shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for issuance | 3,000,000 | ||||||
Share based compensation by share based payment arrangement options excercised exercise price per share | 5.39 | ||||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | Class A ordinary shares [Member] | Changyou Merger [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangements by Share-based Payment Award Options Not Exercisable in Period Conditionally Repurchased Price | 5.39 | ||||||
Accrued fixed price, initial | 5.39 | ||||||
Accrued fixed price, final | $ 5.39 | ||||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | Class A ordinary shares [Member] | Certain members of management and certain other employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares under contractually granted share options | 600,000 | 1,909,000 | |||||
Exercise prices of option granted | $ 0.01 | $ 0.01 |
Sohu.com Limited Shareholder_10
Sohu.com Limited Shareholders' Equity (Fox Video Share-based Awards, Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jan. 04, 2012 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 708,000 | $ 4,939,000 | $ 8,578,000 | |
Fox Video [Member] | Fox Video Share Incentive Plan [Member] | Share Options [Member] | Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares under contractually granted share options | 16,368,200 | |||
Installments of share options granted | four equal installments | |||
Number of shares purchased on vested options | 4,972,800 | |||
Share-based compensation expense | $ 0 | $ (1,000,000) | ||
Fox Video [Member] | Fox Video Share Incentive Plan [Member] | Fox Video Share-based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of outstanding shares eligible to be authorized or issue | 10% | |||
Plan expiration date | Jan. 04, 2022 | |||
Fox Video [Member] | Fox Video Share Incentive Plan [Member] | Fox Video Share-based Awards [Member] | Maximum [Member] | Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 25,000,000 |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 17, 2020 | |
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest in consolidated balance sheets | $ 322,000 | $ 1,268,000 | ||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | (265,000) | 2,000 | $ 6,448,000 | |
Changyou [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest in consolidated balance sheets | 300,000 | 1,300,000 | ||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | (265,000) | 2,000 | (3,000) | |
Changyou [Member] | Common Stock [Member] | Sohu [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percentage of ordinary shares held | 100% | |||
Sogou [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 0 | $ 0 | $ 6,451,000 |
Noncontrolling Interest (Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income /(Loss)) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Noncontrolling Interest [Line Items] | |||
Net income/(loss) attributable to noncontrolling interest shareholders | $ (265,000) | $ 2,000 | $ 6,448,000 |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income/(loss) attributable to noncontrolling interest shareholders | (265,000) | 2,000 | (3,000) |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income/(loss) attributable to noncontrolling interest shareholders | $ 0 | $ 0 | $ 6,451,000 |
Net Income_(Loss) per Share (Na
Net Income/(Loss) per Share (Narrative) (Details) - Sohu [Member] - Ordinary Shares [Member] - Changyou [Member] | Apr. 17, 2020 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |
Percentage of ordinary shares held | 100% |
Changyou Merger [Member] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |
Percentage of ordinary shares held | 100% |
Net Income_(Loss) per Share (Ca
Net Income/(Loss) per Share (Calculation of Sohu Group's Basic and Diluted Net Loss per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income/(loss) from continuing operations attributable to Sohu.com Limited, basic | $ (65,805) | $ (17,343) | $ 69,274 |
Net income/(loss) attributable to Sohu.com Limited, basic | (30,379) | (17,343) | 927,725 |
Net income from discontinued operations attributable to Sohu.com Limited, basic | 35,426 | 0 | 858,451 |
Net income/(loss) from continuing operations attributable to Sohu.com Limited, diluted | (65,805) | (17,343) | 69,274 |
Net income from discontinued operations attributable to Sohu.com Limited, diluted | 35,426 | 0 | 858,431 |
Net income/(loss) attributable to Sohu.com Limited, diluted | $ (30,379) | $ (17,343) | $ 927,705 |
Denominator: | |||
Weighted average basic ordinary shares outstanding | 34,109 | 34,945 | 39,501 |
Weighted average diluted ordinary shares outstanding | 34,109 | 34,945 | 39,501 |
Basic net income/(loss) per share attributable to Sohu.com Limited | |||
Continuing operations | $ (1.93) | $ (0.5) | $ 1.75 |
Discontinued operations | 1.04 | 0 | 21.74 |
Net income/(loss) per share | (0.89) | (0.5) | 23.49 |
Diluted net income/(loss) per share attributable to Sohu.com Limited | |||
Continuing operations | (1.93) | (0.5) | 1.75 |
Discontinued operations | 1.04 | 0 | 21.74 |
Net income/(loss) per share | $ (0.89) | $ (0.5) | $ 23.49 |
Sogou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution from Sogou | $ 0 | $ 0 | $ (20) |
Chinese Mainland Contribution_2
Chinese Mainland Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Chinese mainland [Member] | |||
Multiemployer Plans [Line Items] | |||
Annual Contributions | $ 86.7 | $ 87.6 | $ 83.1 |
Profit Appropriation (Details)
Profit Appropriation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit Appropriation [Line Items] | |||
Total amount of profits contributed to funds | $ 0.3 | $ 0.1 | $ 0.1 |
Total balance of profits contributed to funds | $ 57.6 | $ 57.3 | |
China Foreign Investment Enterprises Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required registered capital ratio to de-force compulsory net profit allocation to general reserve fund | 50% | ||
China Foreign Investment Enterprises Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as a general reserve fund | 10% | ||
Chinese Company Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required registered capital ratio to de-force compulsory net profit allocation to statutory surplus fund | 50% | ||
Chinese Company Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as statutory surplus fund | 10% |
Concentration Risks (Details)
Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Institutions | Dec. 31, 2022 USD ($) Institutions | Dec. 31, 2021 USD ($) | |
Concentration Risk [Line Items] | |||
Revenues | $ 600,672,000 | $ 733,872,000 | $ 835,576,000 |
TLBB PC [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 321,400,000 | ||
Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 55,400,000 | ||
Customer Risk [Member] | Total revenues [Member] | |||
Concentration Risk [Line Items] | |||
Description of concentration risk for operation risk | For the years ended December 31, 2023, 2022 and 2021, there were no revenues from customers that individually represent greater than 10% of the total online advertising revenues. | For the years ended December 31, 2023, 2022 and 2021, there were no revenues from customers that individually represent greater than 10% of the total online advertising revenues. | For the years ended December 31, 2023, 2022 and 2021, there were no revenues from customers that individually represent greater than 10% of the total online advertising revenues. |
Customer Risk [Member] | Online Advertising Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Revenues from customers that individually represent greater than 10% of total online advertising revenues | $ 0 | $ 0 | $ 0 |
Product Risk [Member] | Online game revenues [Member] | Changyou [Member] | TLBB PC [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 67% | ||
Product Risk [Member] | Online game revenues [Member] | Changyou [Member] | Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 12% | ||
Product Risk [Member] | Total revenues [Member] | TLBB PC [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 53% | ||
Product Risk [Member] | Total revenues [Member] | Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 9% | ||
Product Risk [Member] | Total revenues [Member] | Changyou [Member] | TLBB PC [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 66% | ||
Product Risk [Member] | Total revenues [Member] | Changyou [Member] | Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 11% | ||
Credit Risk [Member] | Cash and Cash Equivalents, Short-term Investments, and Long-term Time Deposits [Member] | CHINA | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 60% | 62% | |
Number of financial institutions cash and cash equivalents and short-term investment concentrated held in | Institutions | 14 | 14 | |
Credit Risk [Member] | Total Cash [Member] | |||
Concentration Risk [Line Items] | |||
Maximum percentage of Sohu's cash and bank deposits in any single financial institution | 30% | 34% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - Chinese Company Law [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restricted Net Assets [Line Items] | |
Percentage rate of registered capital, reserve funds reached, appropriation not required | 50% |
Restricted net assets, amount | $ 246.7 |
Minimum [Member] | |
Restricted Net Assets [Line Items] | |
Portion of net after-tax income to be allocated to statutory surplus reserve fund | 10% |