Credit Suisse also expects more competition from domestic rivals like Tencent, Sohu, Taobao and Alibaba.
He was as senior vice president of Sohu.com after ChinaRen.com was acquired by Sohu in 2000.
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Sohu Chief Technology Officer Wang Xiaochuan said Sohu is talking with Alibaba about providing search technology for Etao.
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Alibaba Group, which is based in Hangzhou, China, has agreed to purchase a stake in Sohu.com Inc.
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Moreover, Sohu is also outgunned by companies that provide specific services, most notably Chinese search leader Baidu.
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Sohu shares are trading lower after the Chinese Internet company offered disappointing guidance for the second quarter.
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Koo was COO, CFO and president of Chinese portal Sohu.com before founding Youku, a site that streams video programs.
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The Beijing graduate returned to China from the prestigious Massachusetts Institute of Technology to found Sohu.com in the late 1990s.
Sohu does not match up well against its host of competitors, especially its two main portal rivals, Sina.com and NetEase.
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Overall, SOHU call volume has swelled to nearly nine thousand contracts, versus put volume of merely 4.4 thousand contracts.
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Specifically, Sohu.com posted an unexpected 39% drop in profit, with the company citing acquisition charges and eroding advertising and games sales.
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Another player here, Sohu.com (nasdaq: SOHU - news - people ), saw its wireless business fall by 18.2%.
Since Monday, Sina is up 13.19%, Sohu is up 8.08% and Baidu is up 5.08% as of the close on Thursday.
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Before her career in journalism, she was an early employee at Beijing-based Internet site Sohu.com and worked for Reuters' new media team in China.
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The December regulations affected millions of microbloggers using the largest weibo companies, Sina, Sohu and Tencent, which are based in those cities.
Shenzhen-based firm Easou.com (with WAP-based mobile search partnering with Chinese Web portal Sohu.com) was the second most popular choice, followed by Google.
Apparel giant Adidas and Chinese search engine Sohu.com are on board as well, investing millions attaching their brands to the up-and-coming squad.
Two such listings are planned for later this year: Sina.com and Sohu.com.
Koo already had seven years of Chinese Web experience (Sohu) when he started Youku in 2006, inspired from afar by then year-old YouTube.
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The FXI China 25 ETF is down 3.2% thus far in 2012, while major stocks like Baidu and Sohu are in the red.
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"We have to keep telling employees that they're in it for the long run, to not get worried about market fluctuations, " says Sohu.com's Zhang.
Shares of China-based Internet company Sohu.com are trading sharply higher after the company this morning reported Q3 financial results that crushed Street estimates.
Soon after Taobao was launched, eBay signed exclusive advertising rights with major portals Sina, Sohu, and Netease with the intention of blocking advertisements from Taobao.
Another player here, Sohu.com, saw its wireless business fall by 18.2%.
Sohu is like a Sina, only more focused on brand advertising.
Carol Yu, co-president and chief financial officer of Sohu.com, last week denied newspaper reports that the giant Chinese internet portal was in talks to go private.
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Every Internet conglomerate ( Tencent, Alibaba, Baidu, Sohu, Sina, Shanda) has a search engine, 3rd party payment team, gaming, e-commerce platform, literature platform, etc.
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New competition is coming in from sites backed by Web giants like Baidu, Sohu and Tencent, along with independents such as LeTV and peer-to-peer download sites like Xunlei and PPLive.
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Does that mean Baidu is worth nearly 90 times earnings, or that Sohu is worth betting on when, as The Motley Fool notes, there is a significant short interest in the stock?
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