BEIJING, April 29, 2019 /PRNewswire/ -- Changyou.com
Limited ("Changyou" or the "Company") (NASDAQ: CYOU), a leading
online game developer and operator in China, today announced that its board of
directors (the "Board") has declared a special cash dividend of
US$4.70 per Class A ordinary or Class
B ordinary share, or US$9.40 per
American depositary share ("ADS"), each of which represents two
Class A ordinary shares. The aggregate amount of the special cash
dividend will be approximately US$503
million.
The Board has set May 15, 2019 as
the date on which holders of record of the Company Class A ordinary
shares and Class B ordinary shares will be entitled to the
dividend. In view of the amount of the dividend per ADS in
relation to recent trading prices of the ADSs on NASDAQ, however,
the Company expects that applicable NASDAQ rules will require
holders of ADSs to hold their ADSs as of no later than the end of
the trading day before the ex-dividend date in order to be entitled
to receive the dividend. The Company expects the ex-dividend date
to be no later than June 30, 2019.
Once the ex-dividend date for the special cash dividend has been
determined, the Company will issue an additional press release
announcing the ex-dividend date.
Mr. Dewen Chen, Changyou's CEO,
commented, "We are pleased to announce a special dividend to reward
our shareholders for their patience and support during this
development period as we work on our next hit title. Our online
games continue to maintain their popularity in China and we have been able to generate strong
free cash flows from operations each quarter. This distribution
reflects our continued commitment to drive value for investors over
the long term, and we are confident that we will have sufficient
capital to invest in our various businesses as we look to enhance
our leading position in the industry and capture new opportunities
in the market."
As of March 31, 2019, Changyou had
net cash[1] of US$676
million. Operating cash flow for the year ended December 31, 2018 was a net inflow of
US$200 million.
[1] Net
cash is calculated as the sum of cash and cash equivalents,
short-term investments, current restricted cash and non-current
restricted time deposits, minus long-term bank loans.
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Safe Harbor Statement
This announcement contains forward-looking statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. These statements are based on current plans, estimates
and projections, and therefore you should not place undue reliance
on them. Forward-looking statements involve inherent risks and
uncertainties. The Company cautions that a number of important
factors could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, continuing
volatility in global financial and credit markets and its potential
impact on the Chinese economy; exchange rate fluctuations in
general and possible continued devaluation of the RMB in
particular, including their potential impact on the Chinese economy
and on the Company's reported U.S. dollar results; slowing growth
in the Chinese economy; the uncertain regulatory landscape in
the People's Republic of China;
fluctuations in Changyou's quarterly operating results; the
possibility that Changyou will be unable to develop a series of
successful games for mobile platforms or successfully monetize
mobile games it develops or acquires; the possibility that the
Company's margins will decline as a result of the need for
revenue-sharing with mobile game platform operators; and the
Company's reliance on TLBB as its major revenue source. Further
information regarding these and other risks is included in
Changyou's Annual Report on Form 20-F filed on March 28, 2019, and other filings with the
Securities and Exchange Commission.
About Changyou
Changyou.com Limited (NASDAQ: CYOU) is a leading developer and
operator of online games in China
with a diverse portfolio of popular online games, such as
Tian Long Ba Bu ("TLBB"), one of the
most popular PC games in China, as
well as a number of mobile games. Changyou also owns and operates
the 17173.com Website, a leading game information portal in
China. Changyou began operations
as a business unit within Sohu.com Limited. (NASDAQ: SOHU) in 2003,
and was carved out as a separate, stand-alone company in
December 2007. It completed an
initial public offering on April 7,
2009. Changyou has an advanced technology platform that
includes advanced 2.5D and 3D graphics engines, a uniform game
development platform, effective anti-cheating and anti-hacking
technologies, proprietary cross-networking technology and advanced
data protection technology. For more information, please visit
http://ir.changyou.com.
For investor and media inquiries, please contact:
In China:
Mr. Yujia Zhao
Investor Relations
Phone: +86 (10) 6192-0800
E-mail: ir@cyou-inc.com
In the United
States:
Ms. Linda Bergkamp
Christensen
Phone: +1 (480) 614-3004
Email: lbergkamp@ChristensenIR.com
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SOURCE Changyou.com Limited