Investments in debt securities

$ 1,240,842

$ 833,535

Restricted time deposits

314,836

116,140

Short-term investments

24,369

54,901

81,327

79,548

Prepaid and other current assets

153,284

98,398

95,501

55,761

Total current assets

1,910,159

1,238,283

Prepaid non-current assets

546,228

178,951

Goodwill

164,461

159,215

Intangible assets, net

81,255

70,054

Restricted time deposits

60,151

130,699

9,844

291,643

Other assets

16,249

13,792

Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $11,067 and $6,958, respectively, as of September 30, 2013 and December 31, 2012)

2,788,347

2,082,637

LIABILITIES

96,171

67,934

Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $51,937 and $53,034, respectively, as of September 30, 2013 and December 31, 2012)

209,463

117,029

Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $64,765 and $54,150, respectively, as of September 30, 2013 and December 31, 2012)

112,805

89,687

Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $2,985 and $4,940, respectively, as of September 30, 2013 and December 31, 2012)

76,108

61,722

Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of $14,091 and $14,191, respectively, as of September 30, 2013 and December 31, 2012)

56,672

33,897

Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $3 and $83, respectively, as of September 30, 2013 and December 31, 2012)

16,806

11,878

Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both September 30, 2013 and December 31, 2012)

354,002

113,000

Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $132,111 and $33,074, respectively, as of September 30, 2013 and December 31, 2012)

63,298

63,352

Contingent consideration (including contingent consideration of consolidated VIEs without recourse to the Company of nil as of both September 30, 2013 and December 31, 2012)

Total current liabilities

985,325

558,575

Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of $1,294 and nil, respectively, as of September 30, 2013 and December 31, 2012)

7,333

12,684

Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of nil as of both September 30, 2013 and December 31, 2012)

126,353

Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $3,310 and $3,846, respectively, as of September 30, 2013 and December 31, 2012)

7,350

7,998

Total long-term liabilities

14,683

147,035

Total liabilities

1,000,008

705,610

Commitments and contingencies

MEZZANINE EQUITY

61,810

SHAREHOLDERS' EQUITY

Common stock: $0.001 par value per share (75,400 shares authorized; 38,293 shares and 38,089 shares, respectively, issued and outstanding as of September 30, 2013 and December 31, 2012)

Additional paid-in capital

594,812

378,311

^[1]

Treasury stock (5,889 shares as of September 30, 2013 and December 31, 2012)

(143,858)

Accumulated other comprehensive income

105,768

79,542

Retained earnings

749,748

770,184

^[1]

Total Sohu.com Inc. shareholders' equity

1,306,514

1,084,223

Noncontrolling interest

481,825

230,994

Total shareholders' equity

1,788,339

1,315,217

Total liabilities, mezzanine equity and shareholders' equity

$ 2,788,347

$ 2,082,637

[1]

Revised

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Accounts payable	$ 96,171	$ 67,934
Accrued liabilities	209,463	117,029
Receipts in advance and deferred revenue	112,805	89,687
Accrued salary and benefits	76,108	61,722
Taxes payable	56,672	33,897
Deferred tax liabilities	16,806	11,878
Short-term bank loans	354,002	113,000
Other short-term liabilities	63,298	63,352
Contingent consideration	0	76
Long-term accounts payable	7,333	12,684
Long-term bank loans	0	126,353
Deferred tax liabilities	7,350	7,998
Common stock, par value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,400,000	75,400,000
Common stock, shares issued (in shares)	38,293,000	38,089,000
Common stock, shares outstanding (in shares)	38,293,000	38,089,000
Treasury stock, shares (in shares)	5,889,000	5,889,000
Consolidated VIEs [Member]
Accounts payable	11,067	6,958
Accrued liabilities	51,937	53,034
Receipts in advance and deferred revenue	64,765	54,150
Accrued salary and benefits	2,985	4,940
Taxes payable	14,091	14,191
Deferred tax liabilities	3	83
Short-term bank loans	0	0
Other short-term liabilities	132,111	33,074
Contingent consideration	0	0
Long-term accounts payable	1,294	0
Long-term bank loans	0	0
Deferred tax liabilities	$ 3,310	$ 3,846

Consolidated Statements of Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Revenues:

Brand advertising

$ 124,780

$ 77,874

$ 305,208

$ 208,154

Search and others

52,305

35,284

134,528

85,684

Subtotal of online advertising revenues

177,085

113,158

439,736

293,838

Online games

161,494

150,263

497,210

412,187

Mobile

14,524

14,312

43,610

43,261

Others

15,220

7,645

34,267

18,423

Total revenues

368,323

285,378

1,014,823

767,709

Cost of revenues:

Brand advertising

63,780

37,476

160,214

125,331

Search and others

26,785

19,736

72,075

49,056

Subtotal of cost of online advertising revenues

90,565

57,212

232,289

174,387

Online games

21,750

20,753

67,381

54,475

Mobile

8,108

9,474

26,342

28,535

Others

5,067

9,310

16,652

18,718

Total cost of revenues

125,490

96,749

342,664

276,115

242,833

188,629

672,159

491,594

70,551

46,994

185,731

128,927

90,728

58,250

221,129

145,903

Impairment of intangible assets via acquisition of businesses

29,365

19,666

77,726

54,968

2,906

190,644

124,910

484,586

332,704

Operating profit

52,189

63,719

187,573

158,890

1,533

(111)

5,596

3,320

7,595

5,974

19,794

19,692

Income before income tax expense

(1,305)

667

(5,274)

60,012

70,249

207,689

181,971

18,923

18,727

55,192

55,881

Less: Net income attributable to the mezzanine-classified noncontrolling interest shareholders

41,089

51,522

152,497

126,090

4,495

17,780

6,701

Net income attributable to the noncontrolling interest shareholders

22,855

21,146

70,426

57,618

Dividend or deemed dividend to noncontrolling Sogou series A preferred shareholders

82,423

14,219

^[1]

Net income /(loss) attributable to Sohu.com Inc.

(64,189)

25,881

(18,132)

47,552

^[1]

Other comprehensive income /(loss): Foreign currency translation adjustment, net of tax

41,089

51,522

152,497

126,090

8,249

(3,447)

33,481

(7,115)

Comprehensive income

49,338

48,075

185,978

118,975

Less: Comprehensive income attributable to the mezzanine-classified noncontrolling interest shareholders

4,495

17,780

6,701

Comprehensive income attributable to noncontrolling interest shareholders

24,749

20,540

77,681

56,510

Dividend or deemed dividend to noncontrolling Sogou series A preferred shareholders

82,423

14,219

^[1]

Comprehensive income /(loss) attributable to Sohu.com Inc.

$ (57,834)

$ 23,040

$ 8,094

$ 41,545

^[1]

Basic net income /(loss) per share attributable to Sohu.com Inc. (in dollars per share)

$ (1.68)

$ 0.68

$ (0.47)

$ 1.25

^[1]

Shares used in computing basic net income /(loss) per share attributable to Sohu.com Inc. (in shares)

38,288

38,022

38,239

38,036

Diluted net income /(loss) per share attributable to Sohu.com Inc. (in dollars per share)

$ (1.69)

$ 0.63

$ (0.53)

$ 1.06

^[1]

Shares used in computing diluted net income /(loss) per share attributable to Sohu.com Inc. (in shares)

38,522

38,344

38,481

38,392

[1]

Revised

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 152,497	$ 126,090
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	37,997	28,137
Share-based compensation expense	5,523	10,202
Amortization of intangible assets and purchased video content in prepaid expense	53,378	48,541
Impairment of purchased video content	0	15,101
Impairment of other intangible assets	1,504	7,522
Provision /(Reversal) for allowance for doubtful accounts	(134)	3,538
Excess tax benefits from share-based payment arrangements	0	(3,492)
Investment income from investments in debt securities	(4,143)	(4,098)
Others	(1,722)	89
Changes in assets and liabilities, net of acquisition:
Accounts receivable	(49,920)	(15,025)
Prepaid and other assets	(25,135)	(4,042)
Deferred tax	6,928	7,595
Accounts payable	11,921	22,487
Taxes payable	870	(5,010)
Accrued liabilities	58,493	19,165
Receipts in advance and deferred revenue	12,578	4,809
Other short-term liabilities	14,751	18,172
Net cash provided by operating activities	275,386	279,781
Cash flows from investing activities:
Purchase of noncontrolling interest in 7Road	(76,010)	0
Purchase of fixed assets	(84,201)	(50,840)
Purchase of intangible and other assets	(61,738)	(44,048)
Cash paid related to restricted time deposits	(121,705)	(225,757)
Proceeds /purchase of short-term investments, net	32,856	(24,436)
Other acquisitions, net of cash acquired	0	(683)
Other cash proceeds /(payments) related to investing activities	1,783	(979)
Net cash used in investing activities	(309,015)	(346,743)
Cash flows from financing activities:
Issuance of common stock	964	240
Issuance of Sogou series B preferred shares and Class B ordinary shares	475,472	0
Sohu's purchase of Sogou Series A Preferred Shares from Alibaba	0	(25,800)
Repurchase of common stock	0	(12,566)
Repurchase of Changyou American depositary shares ("ADSs")	(9,048)	0
Portion of Changyou dividend distributed to noncontrolling interest shareholders	0	(64,551)
Portion of Sogou special dividend distributed to holders of Series A Preferred Shares other than Sohu	(139,700)	0
Proceeds of loans from offshore banks	111,530	222,353
Payment of contingent consideration	(19,736)	(13,806)
Excess tax benefits from share-based payment arrangements	0	3,492
Exercise of share-based awards in subsidiary	1,794	1,352
Proceeds received from early exercise of share-based awards in subsidiary	5,278	0
Other cash payments related to financing activities	(447)	(281)
Net cash provided by financing activities	426,107	110,433
Effect of exchange rate changes on cash and cash equivalents	14,829	(2,609)
Net increase in cash and cash equivalents	407,307	40,862
Cash and cash equivalents at beginning of period	833,535	732,607
Cash and cash equivalents at end of period	1,240,842	773,469
Supplemental cash flow disclosures:
Barter transactions	380	451
Supplemental schedule of non-cash investing activity:
Consideration payable for acquisition of Shi Ji Guang Su	24,398	0
Consideration payable for the purchase of noncontrolling interest in 7Road	2,000	0
Changes in government grant in prepaid and other current assets	1,066	794
Supplemental schedule of non-cash financing activity:
Transaction expenses payable for issuance of Sogou Series B Preferred Shares and Class B Ordinary Shares	$ 5,898	$ 0

Consolidated Statement of Changes in Equity (USD $)
In Thousands

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Treasury Stock [Member]

Accumulated Other Comprehensive Income [Member]

Retained Earnings [Member]

Noncontrolling Interest [Member]

Beginning balance at Dec. 31, 2011

$ 1,219,071

$ 44

$ 366,210

$ (131,292)

$ 76,219

$ 697,244

$ 210,646

Issuance of common stock

240

Repurchase of common stock

(12,566)

Settlement of share-based awards in subsidiary

10,202

4,555

5,647

1,353

(7,477)

8,830

Portion of Changyou dividend attributable to noncontrolling interest shareholders

(64,551)

Sohu's purchase of Sogou Series A Preferred Shares from Alibaba

(25,800)

^[1]

(14,219)

^[1]

(11,581)

Changes in mezzanine equity of Changyou

6,836

Transaction cost for Sohu's sale of the 17173 Business to Changyou

118

Deemed contribution from noncontrolling shareholders (related to Sohu's sale of the 17173 Business to Changyou)

171

(171)

Excess tax benefits from share-based awards

3,492

Net income attributable to Sohu.com Inc. and noncontrolling interest shareholders

119,389

61,771

57,618

Foreign currency translation adjustment, net of tax

(7,115)

(6,007)

(1,108)

Ending balance at Sep. 30, 2012

1,250,669

374,145

^[1]

(143,858)

70,212

744,796

^[1]

205,330

Beginning balance at Dec. 31, 2012

1,315,217

378,311

(143,858)

79,542

770,184

230,994

Issuance of common stock

964

Repurchase of Changyou ADSs

(9,048)

(6,116)

(2,932)

Purchase of noncontrolling interest in 7Road

5,464

(836)

6,300

2,257

1,517

740

Consideration received for the issuance of Sogou shares to Tencent, net of transaction expenses

470,662

146,798

323,864

Direct tax impact of Sogou-Tencent Transactions

(21,420)

Special dividend paid to noncontrolling Sogou Series A Preferred Shareholders

(139,700)

86,335

(82,423)

(143,612)

Repurchase /put options for Sogou Series A preferred shares

(6,048)

(3,744)

(2,304)

Settlement of share-based awards in subsidiary

1,793

13,003

(11,210)

Net income attributable to Sohu.com Inc. and noncontrolling interest shareholders

134,717

64,291

70,426

Foreign currency translation adjustment, net of tax

33,481

26,226

7,255

Ending balance at Sep. 30, 2013

$ 1,788,339

$ 44

$ 594,812

$ (143,858)

$ 105,768

$ 749,748

$ 481,825

[1]

Revised

The Company and Basis of Presentation

9 Months Ended

Sep. 30, 2013

The Company and Basis of Presentation [Abstract]

The Company and Basis of Presentation

1. The Company and Basis of Presentation

Nature of Operations

Sohu.com Inc. (“Sohu” or the “Company”), a Delaware corporation organized in 1996, is a leading online media, search, gaming, community and mobile service group providing comprehensive online products and services in the People’s Republic of China (the “PRC” or “China”). The Company, together with its wholly-owned and majority-owned subsidiaries and variable interest entities (collectively the “Sohu Group” or the “Group”), mainly offers online advertising services, online game services and mobile services.

Online advertising and online games are the core businesses of the Sohu Group.

Online Advertising

The online advertising business consists of the brand advertising business as well as the search and others business.

Brand Advertising Business

The brand advertising business offers advertisements on the Sohu Group’s Web properties to companies seeking to increase their brand awareness online.

Search and Others Business

The search and others business, provided by Sohu’s search subsidiary Sogou Inc. (“Sogou”), primarily offers customers pay-for-click services, as well as online marketing services on the Sogou Web Directory.

On September 16, 2013, pursuant to a Subscription Agreement entered into on that date by and among Sogou, THL A21 Limited, a British Virgin Islands company which is a wholly-owned subsidiary of Tencent Holdings Limited, a Cayman Islands company (Tencent Holdings Limited together with its subsidiaries, Tencent”); Sohu’s wholly-owned subsidiary Sohu.com (Search) Limited, a Cayman Islands company (“Sohu Search”); and Photon Group Limited (“Photon”), the investment vehicle of the Sohu Group’ s Chairman and Chief Executive Officer Dr. Charles Zhang, and a series of other contracts also entered into on that date between Sogou and Tencent, Tencent invested a net amount of $448 million in cash in Sogou and transferred its Soso search-related businesses and certain other assets to Sogou (collectively, the “Sogou-Tencent Transactions,” or the “Transactions”).

On September 16, 2013, Sogou entered into (i) a Repurchase Option Agreement with Sohu Search, exercisable commencing March 16, 2014, granting to Sogou the right to purchase 24 million Series A Preferred Shares of Sogou held by Sohu Search for an aggregate purchase price of $78.8 million; (ii) a Repurchase Option Agreement with Photon, also exercisable commencing March 16, 2014, granting to Sogou the right to purchase 6.4 million Series A Preferred Shares of Sogou held by Photon for an aggregate purchase price of $21 million; and (iii) a Repurchase/put Option Agreement with China Web Search (HK) Limited (“China Web”), an investment vehicle of Yunfeng Capital, granting to Sogou the right to purchase at any time from March 16, 2014 to July 31, 2014, and granting to China Web the right to put to Sogou at any time prior to July 31, 2014, 14.4 million Series A Preferred Shares of Sogou held by China Web for an aggregate purchase price of $47.3 million. Sogou expects to exercise its rights under each of these agreements when they first become exercisable.

On September 16, 2013, Sogou, Sohu Search, Photon, Mr. Xiaochuan Wang, four other members of Sogou’s management (collectively, the “Sohu Parties”) and Tencent entered into a Shareholders Agreement (the “Shareholders Agreement”). Under the Shareholders Agreement, the parties have agreed to vote their Sogou voting shares in all elections of directors to elect three designees of Sohu Search and two designees of Tencent.

On September 17, 2013, Sogou paid a special dividend to the three holders of Series A Preferred Shares of Sogou in an aggregate amount of $301 million, of which Sohu received $161 million, Photon received $43 million, and China Web received $97 million.

Pursuant to the Shareholders Agreement, Sohu will hold approximately 53.6% of the total voting power for the election of the Board of Directors of Sogou, assuming that the repurchase options and the repurchase/put option are exercised, Tencent’s non-voting Class B Ordinary Shares are converted to voting shares, and all share options under the Sogou 2010 Share Incentive Plan and all share options under an arrangement providing for Sogou share-based awards to Sohu management and key employees (the “Management Share Option Arrangement”) are granted and exercised. As Sohu is the controlling shareholder of Sogou, Sohu consolidates Sogou in the Sohu Group’s consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu.

Online Games

The online game business is conducted by Sohu’s majority-owned subsidiary Changyou.com Limited (“Changyou”). Changyou completed its initial public offering (“IPO”) on the NASDAQ Global Select Market under the symbol “CYOU” in 2009. As of September 30, 2013, Sohu held approximately 68% of the combined total of Changyou’s outstanding ordinary shares and controlled approximately 83% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu consolidates Changyou in the Sohu Group’s consolidated financial statements but recognizes noncontrolling interest reflecting the economic interest in Changyou held by shareholders other than Sohu.

The online game business consists of the development, operation and licensing of massively multiplayer online games (“MMOGs”), which are interactive online games that may be played simultaneously by hundreds of thousands of game players, Web games, which are played over the Internet using a Web browser, and mobile games. Changyou currently operates several MMOGs in China, including the in-house developed Tian Long Ba Bu (“TLBB”), and developed, and primarily jointly operates with third-party joint operators, DDTank and Wartune (also known as “Shen Qu”), which are two popular Web games in China.

Basis of Consolidation

The consolidated financial statements include the accounts of Sohu and its wholly-owned and majority-owned subsidiaries and consolidated VIEs. All intercompany transactions are eliminated.

VIE Consolidation

The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. The Sohu Group has one VIE that is not consolidated since the Group is not the primary beneficiary.

Noncontrolling Interest Recognition

Noncontrolling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders.

Basis of Presentation

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The accompanying unaudited condensed consolidated interim financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results for the interim periods presented. Results for the nine months ended September 30, 2013 are not necessarily indicative of the results expected for the full fiscal year or for any future period. Certain comparative figures have been reclassified to conform to the current presentation.

Historical accounting error regarding net income attributable to Sohu.com Inc. and basic and diluted net income per share attributable to Sohu.com Inc.

In the third quarter of 2013, as previously reported in an Amendment No. 1 to Current Report on Form 8-K/a that the Company filed with the SEC on September 20, 2013, management noted an accounting error in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2012 regarding net income attributable to Sohu.com Inc. and the calculation of basic and diluted net income per share attributable to Sohu.com Inc. In June 2012, Sohu had purchased from Alibaba Investments Limited (“Alibaba”), a private investment subsidiary of Alibaba Group Holding Limited, 24.0 million Series A Preferred Shares of Sogou for cash consideration of $25.8 million. Under ASC 260-10-S99-2, this transaction gave rise to a deemed dividend in the amount of $14.2 million, which was the difference between the consideration Sohu paid to Alibaba and the carrying amount of these 24.0 million Series A Preferred Shares in the Group’s consolidated financial statements. Accordingly, this amount of $14.2 million should have been subtracted from net income to arrive at net income available to common shareholders in the Group’s calculation of net income per share. This deemed dividend was inappropriately accounted for when calculating the net income attributable to the Group, resulting in an error in the calculation of basic and diluted net income per share attributable to Sohu.com Inc. There was a carry-forward effect of this accounting error to the net income attributable to Sohu.com Inc. and the net income per share calculation as reported for the nine months ended September 30, 2012 in the Company’s Quarterly Report on Form 10-Q for the three months then ended (the “3rd Quarter 2012 10-Q”), and as reported for the year ended December 31, 2012 in the Company’s Annual Report on Form 10-K for the year then ended. In addition, there was a carry-forward effect of the error to the classification of retained earnings and additional paid-in capital in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2012, September 30, 2012, March 31, 2013 and June 30, 2013, and the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Management performed an assessment of the impact of this accounting error from both a quantitative and a qualitative perspective in accordance with the guidance contained in SAB 99, and concluded that the error was not material to the Group’s relevant historical financial statements taken as a whole. Therefore, management concluded that the relevant affected historical financial statements could continue to be relied upon but would be revised to correct the error.

Correction of the error in the Group’s consolidated statements of comprehensive income for the nine months ended September 30, 2012 included in this report resulted in a reduction of $14.2 million in the amount reported for net income attributable to Sohu.com Inc. (from $61.8 million to $47.6 million) and a reduction of $0.38 in the amounts reported for both basic net income per share and diluted net income per share attributable to Sohu.com Inc. (from $1.63 to $1.25 for basic net income per share, and from $1.44 to $1.06 for diluted net income per share), as compared to the corresponding amounts reported in the 3rd Quarter 2012 10-Q. Correction of the error in the Group’s consolidated balance sheets as of December 31, 2012 included in this report resulted in an increase of $14.2 million in additional paid-in capital (from $364.1 million to $378.3 million) and a reduction of $14.2 million in retained earnings (from $784.4 million to $770.2 million), as compared to the corresponding amounts reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Reclassification of revenues and costs related to Changyou Internet value-added services (“IVAS”)

Commencing January 1, 2013, in order to provide a better foundation for understanding Changyou’s performance, both revenues and costs generated from the operation of third-party Web games by the 17173 business were reclassified from the online game business to IVAS in the others business. To conform to current period presentations, the relevant amounts for prior periods have been reclassified accordingly. Such reclassifications amounted to $0.8 million and $3.5 million, respectively, for revenues and $0.3 million and $1.3 million for costs, respectively, for the three and nine months ended September 30, 2012.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=28200181&loc=SL6228881-111685

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 720

-SubTopic 15

-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 10

-Section 50

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+ Details

Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information [Abstract]

Segment Information

2. Segment Information

The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. There are five segments in the Group, consisting of brand advertising, Sogou (which mainly consists of the search and others business), Changyou (which mainly consists of the online game business), mobile and others.

Some items, such as share-based compensation expense, operating expenses, other income and expense, and income tax expense, are not reviewed by the CODM. These items are disclosed in the segment information for reconciliation purposes only.

The following tables present summary information by segment (in thousands):


	Three Months Ended September 30, 2013
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	110,008		$	14,524		$	7,036		$	131,568		$	56,940		$	183,068		$	(3,253	)	$	368,323
Segment cost of revenues		(60,512	)		(8,108	)		(71	)		(68,691	)		(26,687	)		(30,093	)		109			(125,362	)

Segment gross profit /(loss)	$	49,496		$	6,416		$	6,965			62,877			30,253			152,975			(3,144	)		242,961

SBC (2) in cost of revenues											(59	)		(24	)		(45	)		0			(128	)

Gross profit											62,818			30,229			152,930			(3,144	)		242,833

Operating expenses:
Product development											(21,758	)		(17,700	)		(30,181	)		0			(69,639	)
Sales and marketing											(54,748	)		(10,673	)		(28,092	)		3,144			(90,369	)
General and administrative											(11,742	)		(2,952	)		(12,872	)		0			(27,566	)
SBC (2) in operating expenses											(542	)		(5,389	)		(286	)		3,147			(3,070	)

Total operating expenses											(88,790	)		(36,714	)		(71,431	)		6,291			(190,644	)

Operating profit /(loss)											(25,972	)		(6,485	)		81,499			3,147			52,189
Other income /(expense) (3)											162,372			(27	)		381			(161,193	)		1,533
Interest income											1,637			231			5,727			0			7,595
Exchange difference											(170	)		49			(1,184	)		0			(1,305	)
Income /(loss) before income tax expense											137,867			(6,232	)		86,423			(158,046	)		60,012

Income tax expense											(5,328	)		0			(13,595	)		0			(18,923	)

Net income										$	132,539		$	(6,232	)	$	72,828		$	(158,046	)	$	41,089


Note (1): The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares.

	Three Months Ended September 30, 2012
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	68,217		$	14,312		$	2,935		$	85,464		$	37,295		$	165,782		$	(3,163	)	$	285,378
Segment cost of revenues		(35,620	)		(9,474	)		(841	)		(45,935	)		(19,715	)		(30,908	)		41			(96,517	)

Segment gross profit /(loss)	$	32,597		$	4,838		$	2,094			39,529			17,580			134,874			(3,122	)		188,861

SBC (2) in cost of revenues											(133	)		(21	)		(78	)		0			(232	)

Gross profit											39,396			17,559			134,796			(3,122	)		188,629

Operating expenses:
Product development											(16,916	)		(11,034	)		(17,728	)		0			(45,678	)
Sales and marketing											(36,744	)		(7,693	)		(16,353	)		3,122			(57,668	)
General and administrative											(8,842	)		(1,524	)		(7,587	)		0			(17,953	)
SBC (2) in operating expenses											(1,030	)		(1,931	)		(715	)		65			(3,611	)

Total operating expenses											(63,532	)		(22,182	)		(42,383	)		3,187			(124,910	)

Operating profit /(loss)											(24,136	)		(4,623	)		92,413			65			63,719
Other income /(expense) (3)											137,940			61			(1,787	)		(136,325	)		(111	)
Interest income											2,297			73			3,604			0			5,974
Exchange difference											88			31			548			0			667
Income /(loss) before income tax expense											116,189			(4,458	)		94,778			(136,260	)		70,249

Income tax expense											(1,373	)		0			(17,354	)		0			(18,727	)

Net income										$	114,816		$	(4,458	)	$	77,424		$	(136,260	)	$	51,522


Note (1): The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination for other income is primarily for the portion paid to Sohu of a special one-time cash dividend paid by Changyou to its shareholders.

	Nine Months Ended September 30, 2013
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	277,974		$	43,610		$	14,190		$	335,774		$	146,144		$	543,024		$	(10,119	)	$	1,014,823
Segment cost of revenues		(151,105	)		(26,342	)		(2,180	)		(179,627	)		(71,972	)		(91,098	)		329			(342,368	)

Segment gross profit /(loss)	$	126,869		$	17,268		$	12,010			156,147			74,172			451,926			(9,790	)		672,455

SBC (2) in cost of revenues											(197	)		(29	)		(70	)		0			(296	)

Gross profit											155,950			74,143			451,856			(9,790	)		672,159

Operating expenses:
Product development											(62,566	)		(45,131	)		(76,364	)		0			(184,061	)
Sales and marketing											(142,581	)		(28,047	)		(59,559	)		9,790			(220,397	)
General and administrative											(29,192	)		(7,020	)		(38,689	)		0			(74,901	)
SBC (2) in operating expenses											(1,701	)		(5,800	)		(875	)		3,149			(5,227	)

Total operating expenses											(236,040	)		(85,998	)		(175,487	)		12,939			(484,586	)

Operating profit /(loss)											(80,090	)		(11,855	)		276,369			3,149			187,573
Other income /(expense) (3)											164,533			59			2,197			(161,193	)		5,596
Interest income											5,275			837			13,682			0			19,794
Exchange difference											(752	)		196			(4,718	)		0			(5,274	)
Income /(loss) before income tax expense											88,966			(10,763	)		287,530			(158,044	)		207,689
Income tax expense											(11,079	)		(6	)		(44,107	)		0			(55,192	)

Net income										$	77,887		$	(10,769	)	$	243,423		$	(158,044	)	$	152,497

Note (1):

The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment.

Note (2):

“SBC” stands for share-based compensation expense.

Note (3):

The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares.


	Nine Months Ended September 30, 2012
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	188,117		$	43,261		$	6,210		$	237,588		$	90,470		$	449,888		$	(10,237	)	$	767,709
Segment cost of revenues		(120,915	)		(28,535	)		(1,770	)		(151,220	)		(48,992	)		(75,700	)		223			(275,689	)

Segment gross profit /(loss)	$	67,202		$	14,726		$	4,440			86,368			41,478			374,188			(10,014	)		492,020

SBC (2) in cost of revenues											(117	)		(64	)		(245	)		0			(426	)

Gross profit											86,251			41,414			373,943			(10,014	)		491,594

Operating expenses:
Product development											(46,400	)		(27,911	)		(50,597	)		0			(124,908	)
Sales and marketing											(95,522	)		(18,277	)		(40,505	)		10,014			(144,290	)
General and administrative											(23,543	)		(4,235	)		(23,046	)		0			(50,824	)
Impairment of intangible assets via acquisitions of businesses											0			0			(2,906	)		0			(2,906	)
SBC (2) in operating expenses											(3,538	)		(3,519	)		(2,784	)		65			(9,776	)

Total operating expenses											(169,003	)		(53,942	)		(119,838	)		10,079			(332,704	)

Operating profit /(loss)											(82,752	)		(12,528	)		254,105			65			158,890
Other income /(expense) (3)											140,495			60			(910	)		(136,325	)		3,320
Interest income											8,812			261			10,619			0			19,692
Exchange difference											188			58			(177	)		0			69
Income /(loss) before income tax expense											66,743			(12,149	)		263,637			(136,260	)		181,971
Income tax expense											(6,187	)		0			(49,694	)		0			(55,881	)

Net income										$	60,556		$	(12,149	)	$	213,943		$	(136,260	)	$	126,090

Note (1):

The intercompany elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment.

Note (2):

“SBC” stands for share-based compensation expense.

Note (3):

The elimination for other income is primarily for the portion paid to Sohu of a special one-time cash dividend paid by Changyou to its shareholders.


	As of September 30, 2013
	Brand Advertising, Mobile and Others		Sogou		Changyou		Eliminations			Consolidated
Cash and cash equivalents	$	502,934	$	236,640	$	501,268	$	0		$	1,240,842
Accounts receivable, net		110,745		12,880		29,963		(304	)		153,284
Fixed assets, net		249,956		61,965		234,307		0			546,228
Total assets (1)	$	1,213,104	$	333,464	$	1,400,763	$	(158,984	)	$	2,788,347

Note (1):

The elimination for segment assets mainly consists of elimination of long-term investments in subsidiary and associate companies.


	As of December 31, 2012
	Brand Advertising, Mobile and Others		Sogou		Changyou		Eliminations			Consolidated
Cash and cash equivalents	$	433,777	$	33,119	$	366,639	$	0		$	833,535
Accounts receivable, net		68,593		6,481		23,364		(40	)		98,398
Fixed assets, net		70,262		43,861		64,828		0			178,951
Total assets (1)	$	1,038,741	$	87,537	$	1,114,513	$	(158,154	)	$	2,082,637

Note (1):

The elimination for segment assets mainly consists of elimination of long-term investments in subsidiary and associate companies.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Share-Based Compensation Expense [Abstract]

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+ Details

Share-Based Compensation Expense

9 Months Ended

Sep. 30, 2013

Share-Based Compensation Expense

3. Share-Based Compensation Expense

Sohu, Changyou, Sogou, Fox Video Limited (“Sohu Video”), and 7Road.com Limited (“7Road”) all have incentive plans for the granting of share-based awards, including common stock /ordinary shares, share options, restricted shares and restricted share units, to their executive officers, management and employees.

Sohu, Changyou, and Sogou share-based awards

For Sohu, Changyou and Sogou, share-based compensation expense is recognized as costs and /or expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. Share-based compensation expense is charged to the shareholders’ equity or noncontrolling interest section in the consolidated balance sheets.

Sohu Video share-based awards

On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (amounting to 10% of the outstanding Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of September 30, 2013, grants of options for the purchase of 15,352,200 of ordinary shares of Sohu Video had been made and were effective under the Video 2011 Share Incentive Plan.

For purposes of ASC 718, no grant date may be established until mutual understanding of the option awards’ key terms and conditions between Sohu Video and the recipients can be reached, and such mutual understanding cannot be reached until the enterprise value of Sohu Video and hence the fair value of the options is determinable and can be accounted for.

Management concluded that as of September 30, 2013 certain significant factors necessary to determine the fair value of Sohu’s video division remained uncertain. On the basis that the broader terms and conditions of the option awards had neither been finalized nor mutually agreed with the recipients, no grant of options occurred for purposes of ASC 718 and hence no share-based compensation expense was recognized for the three months ended September 30, 2013.

7Road share-based awards

On July 10, 2012, 7Road adopted a 2012 Share Incentive Plan (the “7Road 2012 Share Incentive Plan”), which initially provided for the issuance to selected directors, officers, employees, consultants and advisors of 7Road of up to 5,100,000 ordinary shares of 7Road (amounting to 5.1% of the then outstanding 7Road shares on a fully-diluted basis). On November 2, 2012, 7Road’s Board of Directors and its shareholders approved an increase from 5,100,000 to 15,100,000 ordinary shares (amounting to 13.7% of the then outstanding 7Road shares on a fully-diluted basis) under the 7Road 2012 Share Incentive Plan.

On May 1, 2013, Changyou entered into an agreement to acquire all of the outstanding ordinary shares of 7Road held by noncontrolling shareholders. The acquisition closed on June 5, 2013.

On June 28, 2013, 7Road’s Board of Directors approved the cancellation of the 7Road 2012 Share Incentive Plan. 7Road concurrently offered to a total of 42 7Road employees holding an aggregate of 2,223,750 restricted share units which had been granted under the 7Road 2012 Share Incentive Plan the right to exchange their restricted share units for, at each employee’s election, in each case subject to the employee’s continued employment by 7Road, either (i) Scheme I: the right to a cash payment of up to an aggregate of $2.90 per restricted share unit exchanged, vesting and payable at the rate of 40%, 30% and 30%, respectively, on the first, second and third anniversaries of July 18, 2012, which is the date when the surrendered restricted share units were granted under the 7Road 2012 Share Incentive Plan, or (ii) Scheme II: the right to receive an annual cash bonus, over a seven-year period commencing July 1, 2013, based on adjusted annual cumulative net income of 7Road. All restricted share units held by these 42 holders under the 7Road 2012 Share Incentive Plan as of June 28, 2013 were included in this exchange program.

As the original awards of restricted share units made under the 7Road 2012 Share Incentive Plan included as a vesting condition the completion of an IPO, which is not considered probable under it occurs, no share-based compensation expense was recognized for the fair value of the original awards. As of the date of the modification resulting from the exchange program, incremental compensation expense, which is not classified as share-based compensation expense, will be the fair values of the two new compensation schemes included in the exchange program.

For Scheme I, the modification resulted in total incremental compensation expense of $5.7 million, which will be recognized in the consolidated statements of comprehensive income ratably over the remaining vesting period of the awards for each tranche. For the three and nine months ended September 30, 2013, compensation expense of $0.4 million and $2.9 million, respectively, was recognized in the consolidated statements of comprehensive income. In the third quarter of 2013, 7Road paid $1.6 million in cash bonuses under Scheme I.

For Scheme II, the incremental compensation expense varies depending on 7Road’s financial performance. In the third quarter of 2013, 7Road granted to an additional 48 7Road employees the right to receive an annual cash bonus under Scheme II with the same terms as described above. For both the three and the nine months ended September 30, 2013, compensation expense of $0.3 million was recognized in the consolidated statements of comprehensive income.

Share-based compensation expense recognition

Share-based compensation expense was recognized in costs and /or expenses for the three and nine months ended September 30, 2013 and 2012, respectively, as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Share-based compensation expense
Cost of revenues	$	128	$	232	$	296	$	426
Product development expenses		912		1,316		1,670		4,019
Sales and marketing expenses		359		582		732		1,613
General and administrative expenses		1,799		1,713		2,825		4,144

	$	3,198	$	3,843	$	5,523	$	10,202

There was no capitalized share-based compensation expense for the three and nine months ended September 30, 2013 and 2012.

Share-based compensation expense was recognized for share-based awards of Sohu, Changyou and Sogou as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Share-based compensation expense
For Sohu share-based awards	$	730	$	1,440	$	2,313	$	4,621
For Changyou share-based awards		312		750		884		2,769
For Sogou share-based awards		2,156		1,653		2,326		2,812

	$	3,198	$	3,843	$	5,523	$	10,202

There was no share-based compensation expense recognized for the share-based awards of Sohu Video and 7Road for any of the periods presented in the above table.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

4. Fair Value Measurements

Fair Value of Financial Instruments

The Sohu Group’s financial instruments include cash equivalents, restricted time deposits, short-term investments, investments in debt securities, accounts receivable, prepaid and other current assets, prepaid non-current assets, accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans, other short-term liabilities, long-term accounts payable and long-term bank loans, as well as the repurchase options and the repurchase/put option with respect to Sogou Series A Preferred Shares.

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 market place.

Level 3 - unobservable inputs which are supported by little or no market activity.

The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of September 30, 2013 (in thousands):


			Fair value measurements at reporting date using
Items	As of September 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	72,888	$	0	$	72,888	$	0
Restricted time deposits		374,987		0		374,987		0
Short-term investments		24,369		0		24,369		0
Investments in debt securities		81,327		0		0		81,327

Total Assets	$	553,571	$	0	$	472,244	$	81,327


Put option recognized as other short-term liability	$	6,192	$	0	$	0	$	6,192

The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2012 (in thousands):


			Fair value measurements at reporting date using
Items	As of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	291,945	$	0	$	291,945	$	0
Restricted time deposits		246,839		0		246,839		0
Short-term investments		54,901		0		54,901		0
Investments in debt securities		79,548		0		0		79,548

Total	$	673,233	$	0	$	593,685	$	79,548

The following table sets forth the reconciliation of the fair value measurements using significant unobservable inputs (level 3) from December 31, 2012 to September 30, 2013 (in thousands):


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Debt Securities		Put Option
Beginning balance at December 31, 2012	$	79,548	$	0
Transactions:
Initial fair value of recognition		0		6,048
Fair value change		0		144
Currency translation adjustment		1,779		0

Ending balance at September 30, 2013	$	81,327	$	6,192

Cash equivalents

The Sohu Group’s cash equivalents mainly consist of time deposits placed with banks with an original maturity of three months or less. The fair value of time deposits is determined based on the pervasive interest rates in the market, which are also the interest rates as stated in the contracts with the banks. 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 time deposits at the reporting date. In order to determine the fair value, the Group must use 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.

Restricted time deposits

Restricted time deposits are valued based on the prevailing interest rates in the market. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements.

Changyou loans from offshore banks, secured by time deposits

In 2012 and 2013, Changyou drew down loans from offshore branches of certain banks for the purposes of expediting the payment of a special one-time cash dividend to its shareholders, providing working capital to support its overseas operations, funding the acquisition of outstanding noncontrolling interests in 7Road and providing capital to support its share repurchase program. These bank loans were secured by an equivalent or greater amount of RMB deposits by Changyou in the onshore branches of such banks. The loans from the offshore branches of the lending banks are classified as short-term bank loans or long-term bank loans based on their payment terms.

As of September 30, 2013, the total amount of the bank loans was $354 million, of which $252 million carried a floating rate of interest based on the London Inter-Bank Offered Rate (“LIBOR”) and $102 million carried a fixed rate of interest. For the three and nine months ended September 30, 2013, interest income from the restricted time deposits securing the loans was $2.9 million and $8.8 million, respectively, and interest expense on the bank loans was $2.3 million and $6.4 million, respectively. All of outstanding balances of the bank loans are repayable in 2014.

Collateral related to Sogou incentive shares trust arrangements

In February 2013, Sohu deposited $9 million in cash into restricted time deposit accounts at a bank as collateral for credit facilities provided by the bank to certain Sogou employees. The facilities were intended to fund the employees’ early exercise of Sogou share options and related PRC individual income tax. Sohu is not subject to any additional potential payments other than the restricted time deposit amounts, and believes that the fair value of its guarantee liability is immaterial.

Short-term investments

In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, 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). 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 September 30, 2013, the Sohu Group’s investments in financial instruments were mainly held by 7Road and totaled approximately $24.4 million. The investments are issued by commercial banks in China with a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. For the three and nine months ended September 30, 2013, the Group recorded in the consolidated statements of comprehensive income change in the fair value of short-term investments in the amount of $0.8 million and $2.3 million, respectively. For the three and nine months ended September 30, 2012, the Group recorded in the consolidated statements of comprehensive income change in the fair value of short-term investments in the amount of $0.4 million and $1.0 million, respectively.

Investments in debt securities

In September 2010, Sohu purchased from a PRC-based company (the “Debtor”) a convertible debt security in the principal amount of $74.6 million (or RMB0.5 billion) with interest, payable quarterly in cash, of 3.8% per annum and an initial maturity of twelve months, subject to extension in Sohu’s sole discretion for additional sequential six-month periods. The Debtor’s obligations on the debt are secured by a pledge from the Debtor’s parent company of its entire equity interest in the Debtor. In September 2011, March 2012, September 2012, March 2013 and September 2013, Sohu extended the maturity of the security for sequential six-month periods, to March 2012, September 2012, March 2013, September 2013 and March 2014, respectively, with an interest rate of 6.8% per annum. Under the terms of the security, if Sohu continues to extend the maturity of the security to March 31, 2014, it will have the option, exercisable on March 31, 2014, to convert the outstanding principal into fixed percentages of equity interests in two companies which are affiliates of the Debtor.

For the three and nine months ended September 30, 2013, interest income generated from this debt security amounted to $1.40 million and $4.14 million, respectively. For the three and nine months ended September 30, 2012, interest income generated from this debt security amounted to $1.37 million and $4.10 million, respectively.

The Sohu Group elected the fair value option to account for its investments in debt securities at their initial recognition. Changes in fair value were recognized in other income /(expense). For the three and nine months ended September 30, 2013 and 2012, there was no change in fair value. To estimate fair value, the Group used the income approach, which considers the estimated future return from the investment and the probabilities of getting these returns. The Group classifies the valuation techniques that use these inputs as Level 3 of fair value measurements.

Repurchase Options and Repurchase/Put Option for Sogou Series A Preferred Shares

As discussed in Note 1 - The Company and Basis of Presentation, in September 2013 Sogou entered into Repurchase Option Agreements with Sohu Search and Photon, and a Repurchase/put Option Agreement with China Web with respect to Series A Preferred Shares of Sogou held by them. Sogou expects to exercise its rights to purchase Series A Preferred Shares under each of these agreements when they first become exercisable by Sogou on March 16, 2014.

The repurchase options and the repurchase/put option for Sogou Series A Preferred Shares were initially recognized in the Sohu Group’s consolidated balance sheets at fair value when the agreements were signed. The fair value of the put option will be revaluated quarterly until the option is exercised or expires unexercised. Subsequent changes in the fair values of the equity classified repurchase options will not be recognized until the options are exercised. Management determined the fair values of these options determined using the binominal model, with a discount for lack of marketability, given that the repurchase options and the repurchase/put option were not publicly traded at the time of grant, and made the determination with the assistance of a qualified professional appraiser using management’s estimates and assumptions. We classify the valuation techniques that use these inputs as Level 3 of fair value measurements.

As of September 30, 2013, the Sohu Group recognized $6.2 million for the put option in other short-term liabilities. Any changes in the fair value of the put option were recognized in other income /(expense). For the three months ended September 30, 2013, fair value change of $144,000 for the put option was recognized in other expense in the consolidated statement of comprehensive income. As of September 30, 2013, the Sohu Group also recognized $3.7 million for the repurchase options in additional paid-in capital in equity, based on the fair value of the repurchase options on September 16, 2013.

Other financial instruments

The following are other financial instruments not measured at fair value in the consolidated balance sheets, but for which the fair value was estimated for disclosure purposes.

Short-term receivables and payables

Accounts receivable and prepaid 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, receipts in advance and deferred revenue, short-term bank loans and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short term nature.

For short-term bank loans, the rates of interest under the agreements with the lending banks were determined based on the prevailing interest rates in the market. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. For other short-term receivables and payables, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Group classifies the valuation technique as Level 3 of fair value measurements.

Prepaid non-current assets and long-term payables

Prepaid non-current assets are financial assets with carrying values that approximate fair value because the impact of applying a discount rate to the carrying values would be immaterial. Long-term accounts payable and long-term bank loans are financial liabilities with carrying values that approximate fair value due to the change in fair value, after considering the discount rate, being immaterial.

For long-term bank loans, the rates of interest under Changyou’s agreements with lending banks were determined based on the prevailing interest rates in the market. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. For prepaid non-current assets and long-term accounts payable, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Sohu Group classifies the valuation technique as Level 3 of fair value measurements.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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Fixed Assets

9 Months Ended

Sep. 30, 2013

Fixed Assets [Abstract]

Fixed Assets

5. Fixed Assets

In May 2013, the office building Sohu purchased in 2009 was placed in service. Accordingly, in the same month, the Sohu Group recognized the office building’s original cost of $162 million as fixed assets. The original cost consists primarily of the purchase price and the costs of technological infrastructure and fitting-out work. Also in May 2013, the Group began recognizing depreciation expense based on the building’s useful life, which is approximately 41 years, on a straight-line basis.

For Changyou’s office building purchased in 2010, as of September 30, 2013, all of the $164 million purchase price had been paid and recognized as construction-in-process under fixed assets in the Sohu Group’s consolidated balance sheets, as the construction of the building had been completed and the technological infrastructure and fitting-out work was still in progress.

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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Goodwill

9 Months Ended

Sep. 30, 2013

Goodwill [Abstract]

Goodwill

6. Goodwill

The changes in the carrying value of goodwill by segment are as follows (in thousands):


	Brand Advertising			Mobile			Sogou		Changyou			Total
Balance as of December 31, 2012
Goodwill	$	42,093		$	15,942		$	2,047	$	140,122		$	200,204
Accumulated impairment losses		(19,846	)		(15,942	)		0		(5,201	)		(40,989	)

	$	22,247		$	0		$	2,047	$	134,921		$	159,215

Transactions in 2013
Acquisition of Soso search-related businesses from Tencent		0			0			2,405		0			2,405
Foreign currency translation adjustment		6			0			48		2,787			2,841

Balance as of September 30, 2013	$	22,253		$	0		$	4,500	$	137,708		$	164,461

Balance as of September 30, 2013
Goodwill	$	42,099		$	15,942		$	4,500	$	142,909		$	205,450
Accumulated impairment losses		(19,846	)		(15,942	)		0		(5,201	)		(40,989	)

	$	22,253		$	0		$	4,500	$	137,708		$	164,461

Taxation

9 Months Ended

Sep. 30, 2013

Taxation [Abstract]

Taxation

7. Taxation

Sohu.com Inc. and Changyou.com (US) Inc. are subject to income taxes in the United States (“U.S.”). The majority of the subsidiaries and VIEs of the Sohu Group are based in mainland China and are subject to income taxes in the PRC. These China-based subsidiaries and VIEs conduct substantially all of the Sohu Group’s operations, and generate most of the Sohu Group’s income.

The Sohu Group did not have any penalties or significant interest associated with tax positions for the three and nine months ended September 30, 2013, nor did the Group have any significant unrecognized uncertain tax positions for the three and nine months ended September 30, 2013.

PRC Corporate Income Tax

Related to High and New Technology Enterprises

The PRC Corporate Income Tax Law (the “CIT Law”) applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to High and New Technology Enterprises (“NHTEs”). Under this preferential tax treatment, NHTEs can enjoy a preferential income tax rate of 15% for three years, but need to re-apply after the end of the three-year period. The CIT Law went into effect on January 1, 2008.

Within the Sohu Group, five enterprises, consisting of Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”), Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”), Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”), Changyou’s China-based subsidiary Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”) and Changyou’s China-based VIE Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”), qualified as NHTEs in 2008 and qualified upon re-application in 2011. Therefore, for these enterprises the income tax rate is 15% for 2013. These enterprises will need to re-apply for NHTE status in 2014.

Two additional enterprises, Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”) and Beijing Sogou Information Service Co., Ltd. (“Sogou Information”), qualified as NHTEs in 2009 and qualified upon re-application in 2012. Therefore, for these enterprises the income tax rate is 15% for 2013 and 2014. These enterprises will need to re-apply for NHTE status in 2015.

Related to Software Enterprises

Under the CIT Law, a Software Enterprise can enjoy an income tax exemption for two years beginning with its first profitable year and a 50% tax reduction to a rate of 12.5% for the subsequent three years.

As of September 30, 2013, Shenzhen 7Road Technology Co., Ltd (“Shenzhen 7Road”), Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”), ICE Information Technology (Shanghai) Co., Ltd. (“ICE Information”), Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) and Shenzhen 7Road Network Technologies Co., Ltd. (“7Road Technology”) were “Software Enterprises” entitled to the beneficial tax treatment described above.

PRC Withholding Tax on Dividends

The CIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside mainland China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China 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 the Arrangement Between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital (the “China-HK Tax Arrangement”) if such holding company is considered a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign invested enterprise distributing the dividends, subject to approval of the PRC local tax authority. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend may remain subject to a withholding tax rate of 10%.

As of September 30, 2013, Changyou accrued deferred tax liabilities in the amount of $16.8 million for PRC withholding tax.

Transition from PRC Business Tax to PRC Value Added Tax

Effective September 1, 2012, a Pilot Program for transition from the imposition of PRC business tax (“Business Tax”) to the imposition of value added tax (“VAT”) for revenues from certain industries was expanded from Shanghai to eight other cities and provinces in China, including Beijing and Tianjin. Commencing August 1, 2013 the Pilot Program was expanded to all regions in the PRC. The Sohu Group’s brand advertising and search revenues are subject to this program.

Business Tax had been imposed primarily on revenues from the provision of taxable services, assignments of intangible assets and transfers of real estate. Prior to the implementation of the Pilot Program, the Sohu Group’s Business Tax rate, which varies depending on the nature of the revenues being taxed, generally ranged from 3% to 5%.

VAT payable on goods sold or taxable labor services provided by a general VAT taxpayer for a taxable period is the net balance of the output VAT for the period after crediting the balance of VAT input. Before the implementation of the Pilot Program, the Sohu Group was mainly subject to a small amount of VAT for revenues of Changyou’s subsidiary 7Road that are deemed for PRC tax purposes to be derived from the sale of software. VAT has been imposed on those 7Road revenues at a rate of 17%, with a 14% immediate tax refund, resulting in a net rate of 3%. With the implementation of the Pilot Program, in addition to the revenues currently subject to VAT, the Group’s brand advertising and search revenues are in the scope of the Pilot Program and are now subject to VAT at a rate of 6%.

Under ASC 605-45, the presentation of taxes on either a gross basis (included in revenues and costs) or a net basis (excluded from revenues) is an accounting policy decision determined by management. As VAT imposed on brand adverting and search revenues and VAT imposed on 7Road’s revenues from the sale of software are considered as substantially different in nature, the Sohu Group determined that it is reasonable to apply the guidance separately for these two types of VAT. The basis for this determination is that VAT payable on brand advertising and search revenues is the difference between the output VAT (at a rate of 6%) and available input VAT amount (at the rate applicable to the supplier), which is a component of the Group’s costs for providing the brand advertising and search services. On the other hand, the VAT payable by 7Road is in effect at 3% of the applicable revenues from the sale of software, irrespective of the availability of any input VAT, under preferential VAT treatment provided to 7Road by the local tax bureau. In this regard, the Group believes the VAT payable by 7Road is more akin to a sales tax than typical VAT. As a result, the Group adopted the net presentation method for its brand advertising and search businesses both before and after the implementation of the Pilot Program, and for the revenues of 7Road deemed to be derived from the sale of software, the Group adopted the gross presentation method before and after the implementation of the Pilot Program.

U.S. Corporate Income Tax

Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of 34% or 35%. Subject to certain limitations, the net operating losses (“NOLs”) of a corporation taxable in the U.S. that are carried forward from prior years may be used to offset the corporation’s taxable income. At the end of the 2012 taxable year, Sohu.com Inc. had no further NOLs available for offsetting any U.S. taxable income. Accordingly, to the extent that it has U.S. taxable income in 2013, the Sohu Group will accrue U.S. corporate income tax in its consolidated statements of comprehensive income and make estimated tax payments as and when required by U.S. law.

Other Provisions for Taxes

As described above, the Group is subject to various taxes in different jurisdictions, primarily the US and the PRC. Management reviews regularly the adequacy of the provisions for taxes as they relate to the income and transactions of the Group. In reviewing various equity transactions among companies in the Group, management determined that the transactions may result in additional tax obligations under relevant tax rules. As a result of certain equity transactions that took place during the quarter ended September 30, 2013, the Group has recognized directly to equity a provision for tax in the amount of $21.4 million as of September 30, 2013.

Commitments and Contingencies [Abstract]

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies

8. Commitments and Contingencies

Unconditional Obligations

As of September 30, 2013, the Sohu Group had commitments for bandwidth purchases in the amount of $44 million, commitments for operating leases in the amount of $28 million, commitments for video content purchases in the amount of $22 million and commitments for other content and service purchases in the amount of $16 million.

Litigation

The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. Management does not expect the results of any of these actions to have a material adverse effect on the Group’s business, results of operations, financial condition and cash flows.

In the first quarter of 2013, the Sohu Group settled lawsuits with four major record companies (Sony BMG, Warner, Universal and Gold Label) without any payment of damages. In these lawsuits, which were initiated against the Sohu Group in March 2008, these record companies had alleged that the Sohu Group provided music search links and download services that violated copyrights they owned.

PRC Law and Regulations

The Chinese 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, search and others, online game, mobile and others services in the PRC. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. 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. The Chinese government may issue from time to time new laws or new interpretations of existing laws to regulate areas such as telecommunication, information and media. Certain risks related to PRC law that could affect the Sohu Group’s VIE structure are discussed in Note 9 - VIEs.

Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu Group’s legal structure and scope of operations in China could be subject to restrictions, which could result in limits on its ability to conduct business in the PRC.

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 China, 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 China may require certain supporting documentation in order to effect the remittance.

Sohu.com Inc. Shareholders' Equity [Abstract]

The entire disclosure for commitments and contingencies.

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VIEs

9 Months Ended

Sep. 30, 2013

VIEs [Abstract]

VIEs

9. VIEs

Background

PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses 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 PRC through its VIEs.

The Sohu Group consolidates in its consolidated financial statements all of the VIEs of which the Group is the primary beneficiary. The Sohu Group has one VIE that is not consolidated in the Group’s consolidated financial statements because the Group is not the primary beneficiary.

VIEs Consolidated within the Sohu Group

The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. Management made evaluations of the relationships between the Sohu Group and its VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of contractual arrangements with its consolidated VIEs, the Sohu Group controls the shareholders’ voting interests in those VIEs. As a result of such evaluation, the management concluded that the Sohu Group is the primary beneficiary of the VIEs which the Group consolidates.

All of the consolidated VIEs are incorporated and operated in the PRC, and are directly or indirectly owned by Dr. Charles Zhang, Sohu’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 those 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 who are shareholders of the consolidated VIEs are required to transfer their ownership in these entities to the Group, if permitted by PRC 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 who are shareholders of the consolidated VIEs have pledged their shares in the consolidated VIEs as collateral for the loans. As of September 30, 2013, the aggregate amount of these loans was $18.6 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 PRC statutory reserves of the VIEs. As of September 30, 2013, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $34.8 million. As all of the consolidated VIEs are incorporated as limited liability companies under the PRC 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 PRC 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 consolidated VIEs within the Sohu Group:

Basic Information

Corporate

High Century

Beijing Century High Tech Investment Co., Ltd. (“High Century”) is a holding company which was incorporated in 2001. As of September 30, 2013, the registered capital of High Century was $4.6 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity.

Sohu Entertainment

Beijing Sohu Entertainment Culture Media Co., Ltd. (“Sohu Entertainment”) was incorporated in 2002. As of September 30, 2013, the registered capital of Sohu Entertainment was $1.2 million and Xin Wang (Belinda Wang), Sohu’s Co-President and Chief Operating Officer, and Ye Deng, a Vice President of Sohu, held 80% and 20% interests, respectively, in this entity.

Sohu Internet

Sohu Internet was incorporated in 2003 and is engaged in the provision of mobile services. As of September 30, 2013, the registered capital of Sohu Internet was $1.6 million and High Century and Sohu Entertainment held 75% and 25% interests, respectively, in this entity.

For the Online Advertising Business

Brand Advertising Business

Donglin

Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) was incorporated in 2010 and is engaged in advertising services. As of September 30, 2013, the registered capital of Donglin was $1.5 million and High Century and Sohu Internet each held a 50% interest in this entity.

Pilot New Era

Beijing Pilot New Era Advertising Co., Ltd. (“Pilot New Era”) was incorporated in 2010 and is engaged in advertising services. As of September 30, 2013, the registered capital of Pilot New Era was $0.7 million and High Century and Sohu Internet each held a 50% interest in this entity.

Focus Yiju

Beijing Focus Yiju Network Information Technology Co., Ltd. (“Focus Yiju”) was acquired in 2011 and is engaged in advertising services. As of September 30, 2013, the registered capital of Focus Yiju was $1.6 million and High Century held a 100% interest in this entity.

Zhi Hui You

Beijing Zhi Hui You Information Technology Co., Ltd. (“Zhi Hui You”) was incorporated in 2011 as “Beijing 17173 Network Technology Co., Ltd.” and was renamed on December 14, 2012. Zhi Hui You is engaged in technology development and advertising services. As of September 30, 2013, the registered capital of Zhi Hui You was $1.6 million and Jing Zhou and a third party entity each held a 50% interest in this entity.

Tianjin Jinhu

Tianjin Jinhu Culture Development Co., Ltd. (“Tianjin Jinhu”) was incorporated in 2011 and is engaged in advertising services. As of September 30, 2013, the registered capital of Tianjin Jinhu was $0.5 million and Ye Deng and Chun Liu each held a 50% interest in this entity.

Search and Others Business

Sogou Information

Sogou Information was incorporated in 2005. As of September 30, 2013, the registered capital of Sogou Information was $2.5 million and Xiaochuan Wang, Chief Executive Officer of Sogou, and Xianxian Hao each held a 50% interest in this entity.

Shi Ji Guang Su

Shenzhen Shi Ji Guang Su Information Technology Co., Ltd. (“Shi Ji Guang Su”), which is engaged in Soso search-related businesses, was acquired in September 2013 as part of the Sogou-Tencent Transactions. As of September 30, 2013, the registered capital of Shi Ji Guang Su was $3.2 million and Sogou Information held a 100% interest in this entity.

For the Online Game Business

Gamease

Gamease was incorporated in 2007. As of September 30, 2013, the registered capital of Gamease was $1.3 million and Tao Wang, Chief Executive Officer of Changyou, and Dewen Chen, President of Changyou, held 60% and 40% interests, respectively, in this entity.

Shanghai ICE

Shanghai ICE was acquired by Changyou in 2010. As of September 30, 2013, the registered capital of Shanghai ICE was $1.2 million and Runa Pi and Rong Qi each held a 50% interest in this entity.

Guanyou Gamespace

Guanyou Gamespace was incorporated in 2010. As of September 30, 2013, the registered capital of Guanyou Gamespace was $1.5 million and Tao Wang and Dewen Chen held 60% and 40% interests, respectively, in this entity.

Shenzhen 7Road

68.258% of Shenzhen 7Road was acquired by Gamease in 2011. In the second quarter of 2012, in connection with a reorganization of Shenzhen 7Road to create a Cayman Islands holding company structure, Shenzhen 7Road became a VIE of 7Road, which is a Cayman Islands company of which approximately 71.926% was owned by Changyou. Shenzhen 7Road is controlled by Changyou, and Changyou is a primary beneficiary of Shenzhen 7Road, as a result of contractual arrangements among Shenzhen 7Road, 7Road Technology, which is a PRC-based indirect wholly-owned subsidiary of 7Road, and the shareholders of Shenzhen 7Road. On May 1, 2013, Gamease entered into an agreement to acquire all of the equity interests of Shenzhen 7Road held by the noncontrolling shareholders, representing 31.742% of the equity interests of Shenzhen 7Road. After closing the acquisition of noncontrolling interests on June 5, 2013, Changyou held 100% of the outstanding share capital of 7Road and Gamease held 100% equity interests of Shenzhen 7Road.

For the Mobile Business

GoodFeel

Beijing GoodFeel Information Technology Co., Ltd. (“GoodFeel”) was acquired in 2004 and is engaged in value added telecommunication services. As of September 30, 2013, the registered capital of GoodFeel was $1.2 million and James Deng and Jing Zhou, held 58.1% and 41.9% interests, respectively, in this entity.

21 East Beijing

Beijing 21 East Culture Development Co., Ltd. (“21 East Beijing”) was acquired in 2006. As of September 30, 2013, the registered capital of 21 East Beijing was $1.6 million and High Century held a 100% interest in this entity.

Yi He Jia Xun

Beijing Yi He Jia Xun Information Technology Co., Ltd. (“Yi He Jia Xun”) was acquired in September 2011. As of September 30, 2013, the registered capital of Yi He Jia Xun was $2.1 million and Gang Fang and Yanfeng Lv each held a 50% interest in this entity.

Financial Information

The following financial information of the Sohu Group’s consolidated VIEs is included in the accompanying consolidated financial statements (in thousands):


	As of
	September 30, 2013		December 31, 2012
ASSETS:
Cash and cash equivalents	$	46,631	$	62,638
Short-term investments		10,337		54,106
Accounts receivable, net		97,941		80,671
Other current assets		43,806		30,322
Intercompany receivables due from subsidiaries		260,930		109,728

Total current assets		459,645		337,465

Goodwill		128,949		126,516
Prepaid and other non-current assets		54,242		57,793

Total assets	$	642,836	$	521,774

LIABILITIES:
Accounts payable	$	11,067	$	6,958
Accrued and other short-term liabilities		201,127		105,322
Receipts in advance and deferred revenue		64,765		54,150
Intercompany payables due to subsidiaries		30,962		36,446

Total current liabilities		307,921		202,876

Other long-term liabilities		4,604		3,846

Total liabilities	$	312,525	$	206,722


	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Net revenue	$	259,362	$	233,802	$	759,948	$	639,947
Net income	$	5,425	$	38,439	$	198,853	$	92,100

For the table below, consolidated VIEs under the Brand advertising, Sogou, Mobile and Others segments are classified as Sohu’s VIEs, and consolidated VIEs under the Changyou segment are classified as Changyou’s VIEs.


Cash flows of Sohu’s VIEs	Nine months ended September 30,
	2013			2012
Net cash provided by /(used in) operating activities	$	6,312		$	(16,930	)
Net cash (used in) /provided by investing activities		(574	)		143
Net cash used in financing activities	$	0		$	(474	)


Cash flows of Changyou’s VIEs	Nine months ended September 30,
	2013			2012
Net cash provided by operating activities	$	29,225		$	41,843
Net cash used in investing activities		(51,434	)		(31,558	)
Net cash used in financing activities	$	0		$	(13,105	)

Summary of significant agreements currently in effect

Agreements between consolidated VIEs and Nominee Shareholders

Loan and equity pledge agreements between Sohu Era and the respective shareholders of High Century and Sohu Entertainment: These loan agreements provide for loans to the shareholders of High Century and Sohu Entertainment for them to make contributions to the registered capital of High Century and Sohu Entertainment in exchange for the equity interests in High Century and Sohu Entertainment, and under these pledge agreements the shareholders pledge those equity interests to Sohu Era as security for the loans. The loan agreements include powers of attorney that give Sohu Era the power to appoint nominees to act on behalf of the shareholders of High Century and Sohu Entertainment in connection with all actions to be taken by High Century and Sohu Entertainment. Pursuant to the loan agreements, the shareholders executed in blank transfers of their equity interests in High Century and Sohu Entertainment, which transfers are held by the Sohu Group’s legal department and may be completed and effected at Sohu Era’s election.

Loan and equity pledge agreements between Sogou Tech and the shareholders of Sogou Information. These loan agreements provide for loans to the shareholders of Sogou Information for them to make contributions to the registered capital of Sogou Information in exchange for the equity interests in Sogou Information, and under the pledge agreements the shareholders pledge those equity interests to Sogou Tech as security for the loans. The loans are interest free and are repayable on demand, but the shareholders can only repay the loans by transferring to Sogou Tech their equity interests in Sogou Information.

Exclusive equity interest purchase right agreements between Sogou Tech, Sogou Information and the shareholders of Sogou Information. Pursuant to these agreements, Sogou Tech and any third party designated by it have the right, exercisable at any time when it becomes legal to do so under PRC law, to purchase from the shareholders of Sogou Information all or any part of their equity interests at a purchase price equal to the shareholders’ initial contributions to registered capital.

Powers of Attorney executed by the shareholders of Sogou Information in favor of Sogou Tech with a term of 10 years, extendable at the request of Sogou Tech. These powers of attorney give Sogou Tech the right to appoint nominees to act on behalf of each of the two Sogou Information shareholders in connection with all actions to be taken by Sogou Information.

Business operation agreement among Sogou Tech, Sogou Information and the shareholders of Sogou Information. The agreement sets forth the right of Sogou Tech to control the actions of the shareholders of Sogou Information. The agreement has a term of 10 years, renewable at the request of Sogou Tech.

Loan agreements and equity pledge agreements between AmazGame and the shareholders of Gamease and between Gamespace and the shareholders of Guanyou Gamespace. The loan agreements provide for loans to the shareholders of Gamease and Guanyou Gamespace, respectively, for them to make contributions to the registered capital of Gamease and Guanyou Gamespace in exchange for the equity interests in Gamease and Guanyou Gamespace, respectively. Under the equity pledge agreements the shareholders of Gamease and Guanyou Gamespace, respectively, pledge to AmazGame and Gamespace, respectively, their equity interests in Gamease and Guanyou Gamespace, respectively, to secure the performance of their obligations under the loan agreements and Gamease’s and Guanyou Gamespace’s obligations to AmazGame and Gamespace under their business agreements. The loans are interest free and are repayable on demand, but the shareholders can only repay the loans by transferring to AmazGame and Gamespace, respectively, their equity interests in Gamease and Guanyou Gamespace.

Equity interest purchase right agreements between AmazGame and the shareholders of Gamease and between Gamespace and the shareholders of Guanyou Gamespace. Pursuant to these agreements, AmazGame and Gamespace, respectively, have the right, and any third party designated by them has the right, exercisable at any time when it becomes legal to do so under PRC law, to purchase from the shareholders of Gamease and Guanyou Gamespace, respectively, all or any part of their equity interests at a purchase price equal to their initial contributions to registered capital.

Powers of attorney executed by the shareholders of Gamease in favor of AmazGame and the shareholders of Guanyou Gamespace in favor of Gamespace, with a term of 10 years. These powers of attorney give AmazGame and Gamespace, respectively, the exclusive right to appoint nominees to act on behalf of the shareholders in connection with all actions to be taken by Gamease and Guanyou Gamespace, respectively.

Business operation agreements between AmazGame and the shareholders of Gamease and between Gamespace and the shareholders of Guanyou Gamespace. This agreement sets forth the right of AmazGame and Gamespace, respectively, to control the actions of the shareholders of Gamease and Guanyou Gamespace, respectively. The agreements have a term of 10 years.

Call option agreement among ICE Information, Shanghai ICE and Shanghai ICE shareholders. This agreement provides to ICE Information and any third party designated by ICE Information the right, exercisable at any time when it becomes legal to do so under PRC law, to purchase from the shareholders all or any part of their shares in Shanghai ICE or purchase from Shanghai ICE all or part of its assets or business at the lowest purchase price permissible under PRC law. The agreement is terminable only if ICE Information is dissolved.

Share pledge agreement among ICE Information, Shanghai ICE and the shareholders of Shanghai ICE. Under this agreement the shareholders pledge to ICE Information their equity interests in Shanghai ICE to secure the performance of their obligations under the call option agreement and Shanghai ICE’s obligations to ICE Information under their business agreements.

Business operation agreement among ICE Information, Shanghai ICE and the shareholders of Shanghai ICE. This agreement sets forth the right of ICE Information to control the actions of the shareholders of Shanghai ICE. The agreement is terminable only if ICE Information is dissolved.

Equity interest purchase right agreement among 7Road Technology, Shenzhen 7Road and Gamease, which is Shenzhen 7Road’s sole shareholder. Under this agreement, 7Road Technology and any third-party designated by 7Road Technology have the right, exercisable at any time during the term of the agreements, if and when it is legal to do so under PRC law, to purchase from Gamease all or any part of its shares in Shenzhen 7Road at a nominal purchase price. This agreement has a term of 10 years, is renewable by 7Road Technology for such term as it may determine and is terminable early only if Shenzhen 7Road’s or 7Road Technology’s existence is terminated, by mutual agreement of the parties or upon the written request of 7Road Technology.

Equity interest pledge agreement among 7Road Technology, Shenzhen 7Road and Gamease. Under this agreement, Gamease agreed to pledge to 7Road Technology its equity interests in Shenzhen 7Road to secure the performance of its obligations and Shenzhen 7Road’s obligations under the various VIE-related agreements. If Gamease or Shenzhen 7Road breaches its obligations under any VIE-related agreements, 7Road Technology is entitled to exercise its rights as the beneficiary under the Equity Interest Pledge Agreement. This agreement terminates only after all of the obligations of Gamease and of Shenzhen 7Road under the various VIE-related agreements are no longer in effect.

Business operation agreement among 7Road Technology, Shenzhen 7Road and Gamease. This agreement grants to 7Road Technology the right to control the actions of Shenzhen 7Road and the actions of Gamease in its capacity as the shareholder of Shenzhen 7Road. This agreement has a term of 10 years, is renewable by 7Road Technology for such term as it may determine and is terminable early if the existence of Shenzhen 7Road or 7Road Technology is terminated, by mutual agreement of the parties or upon the written request of 7Road Technology.

Power of attorney executed by Gamease in favor of 7Road Technology. This power of attorney gives 7Road Technology the exclusive right to appoint designees to act on behalf of Gamease in connection with all actions to be taken by Shenzhen 7Road requiring shareholder approval.

Business Arrangements between Subsidiaries and consolidated VIEs

Business cooperation agreement between Sohu Era and Sohu Internet. Pursuant to this agreement Sohu Era provides technical consultation, content purchasing and other related services to Sohu Internet, in exchange for a percentage of the gross income of Sohu Internet. The agreement between Sohu Era and Sohu Internet has a term of one year, renewable at the request of Sohu Era.

Business cooperation agreement between Sogou Tech and Sogou Information. Pursuant to this agreement, Sogou Information provides the Internet information service to Sogou Tech’s customers, in exchange for a certain amount of service fee, with a term of 10 years, renewable at request of Sogou Tech.

Exclusive technology consulting and service agreement between Sogou Tech and Sogou Information. Pursuant to this agreement Sogou Tech has the exclusive right to provide technical consultation and other related services to Sogou Information in exchange for a certain amount of service fee, with a term of 10 years, renewable at request of Sogou Tech.

Technology support and utilization agreements between AmazGame and Gamease and between Gamespace and Guanyou Gamespace. Pursuant to these agreements, AmazGame and Gamespace, respectively, have the exclusive right to provide certain product development and application services and technology support to Gamease and Guanyou Gamespace, respectively, for a fee equal to a predetermined percentage, subject to adjustment by AmazGame or Gamespace at any time, of Gamease’s and Guanyou Gamespace’s respective revenues. These agreements will be terminated only when AmazGame and Gamespace are dissolved.

Services and maintenance agreements between AmazGame and Gamease between Gamespace and Guanyou Gamespace. Pursuant to these agreements, AmazGame and Gamespace, respectively, provide marketing, staffing, business operation and maintenance services to Gamease and Guanyou Gamespace, respectively, in exchange for a fee equal to the cost of providing such services plus a predetermined margin. These agreements will be terminated only when AmazGame and Gamespace are dissolved.

Exclusive business cooperation agreement between ICE Information and Shanghai ICE. This agreement sets forth the exclusive right of ICE Information to provide business support and technical services to Shanghai ICE. The agreement will be terminated only when ICE Information is dissolved.

Exclusive technology consulting and services agreement between ICE Information and Shanghai ICE. This agreement provides to ICE Information the exclusive right to provide technical consultation and other related services to Shanghai ICE in exchange for a fee equal to the balance of Shanghai ICE’s gross income after deduction of related costs and expenses. The agreement will be terminated only when ICE Information is dissolved.

Technology development and utilization agreement between 7Road Technology and Shenzhen 7Road. Under this agreement, 7Road Technology has the exclusive right to provide product development and application services and technology support to Shenzhen 7Road for a fee based on Shenzhen 7Road’s revenues, which fee can be adjusted by 7Road Technology at any time in its sole discretion. The fee is eliminated upon consolidation. This agreement will terminate if the existence of 7Road Technology or Shenzhen 7Road is terminated, by mutual agreement of the parties or upon failure to perform due to a force majeure event.

Services and maintenance agreement between 7Road Technology and Shenzhen 7Road. Pursuant to this agreement, 7Road Technology provides marketing and maintenance services to Shenzhen 7Road in exchange for a fee equal to the cost of providing such services plus a predetermined margin. This agreement will terminate if the existence of 7Road Technology or Shenzhen 7Road is terminated, by mutual agreement of the parties or upon failure to perform due to a force majeure event.

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.

VIE-Related Risks

It is possible that the Sohu Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC laws and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If such a finding were made, regulatory authorities with jurisdiction over the licensing and operation of such operations businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a materially adverse impact on the Group’s cash flows, financial position and operating performance. The management considers the possibility of such a finding by PRC regulatory authorities to be remote.

In addition, it is possible that the contracts with the Sohu Group, the Sohu Group’s VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Group would not be able to exert effective control over the affected VIEs. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Sohu Group’s consolidated financial statements. If such were the case, the Group’s cash flows, financial position and operating performance would be materially adversely affected. The Sohu Group’s contractual arrangements with respect to its consolidated VIEs are approved and in place. The management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sohu Group’s operations and contractual relationships would find the contracts to be unenforceable.

VIE Not Consolidated within the Sohu Group

In December 2012, the Sohu Group acquired, for a price of $1.6 million, a 25% equity interest in a VIE to support the Group’s brand advertising business. Since the Sohu Group neither controls nor has significant influence over this VIE, the Group is not the primary beneficiary and, accordingly, the Group recognizes the investment under the equity method. In assessing its maximum exposure to a loss on the investment compared to the cost of its investment, the Sohu Group determined that it did not have further obligations exceeding the cost of the investment and that there were no terms of the investment arrangement that could require the Sohu Group to provide further financial support to the VIE.

Sohu.com Inc. Shareholders' Equity

9 Months Ended

Sep. 30, 2013

Sohu.com Inc. Shareholders' Equity

10. Sohu.com Inc. Shareholders’ Equity

Takeover Defense

Sohu intends to adopt appropriate defensive measures in the future on a case by case basis as and to the extent that Sohu’s Board of Directors determines that such measures are necessary or advisable to protect Sohu stockholder value in the face of any coercive takeover threats or to prevent an acquirer from gaining control of Sohu without offering fair and adequate price and terms.

Treasury Stock

Treasury stock consists of shares repurchased by Sohu that are no longer outstanding and are held by Sohu. Treasury stock is accounted for under the cost method.

On July 27, 2013, Changyou’s Board of Directors authorized a share repurchase program of up to $100 million of the outstanding ADSs of Changyou over a two-year period from July 27, 2013 to July 26, 2015. As of September 30, 2013, Changyou had repurchased 305,800 of its ADSs, representing 611,600 ordinary shares under the share repurchase program at an aggregate cost of approximately $9.1 million.

Stock Incentive Plan

Sohu, Changyou, Sogou, Sohu Video and 7Road all have incentive plans for the granting of share-based awards, including common stock /ordinary shares, share options, restricted shares and restricted share units, to their directors, executive officers, and employees.

1) Sohu.com Inc. Share-based Awards

Sohu’s 2000 Stock Incentive Plan

Sohu’s 2000 Stock Incentive Plan (the “Sohu 2000 Stock Incentive Plan”) provided for the issuance of up to 9,500,000 shares of common stock, including those issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. Most of these awards vest over a period of four years. The maximum term of any issued stock right under the Sohu 2000 Stock Incentive Plan is ten years from the grant date. The Sohu 2000 Stock Incentive Plan expired on January 24, 2010. As of the expiration date, 9,128,724 shares of common stock had been issued or were subject to issuance upon the vesting and exercise of share options or the vesting and settlement of restricted share units granted under the plan. A new plan (the “Sohu 2010 Stock Incentive Plan”) was adopted on July 2, 2010.

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for awards under the Sohu 2000 Stock Incentive Plan was $0.5 million and $1.7 million, respectively. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for awards under the Sohu 2000 Stock Incentive Plan was $1.2 million and $3.9 million, respectively.

i) Summary of share option activity

A summary of share option activity under the Sohu 2000 Stock Incentive Plan as of and for the nine months ended September 30, 2013 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 at January 1, 2013		242		$	19.36		1.91	$	6,781
Exercised		(63	)		15.06
Forfeited or expired		(1	)		9.07

Outstanding at September 30, 2013		178			20.91		1.43		10,336

Vested at September 30, 2013		178			20.91		1.43		10,336

Exercisable at September 30, 2013		178			20.91		1.43		10,336

Note (1):

The aggregate intrinsic value in the preceding table represents the difference between Sohu’s closing stock price of $78.83 on September 30, 2013 and the exercise price of share options. The total intrinsic value of share options exercised for the nine months ended September 30, 2013 was $2.3 million.

No options have been granted under Sohu’s 2000 Stock Incentive Plan since 2006. For the three and nine months ended September 30, 2013 and 2012, no compensation expense was recognized for share options because the requisite service periods for share options had ended by the end of 2009.

For the three and nine months ended September 30, 2013, total cash received from the exercise of share options amounted to $0.1 million and $1.0 million, respectively. For the three and nine months ended September 30, 2012, total cash received from the exercise of share options amounted to $101,000 and $240,000, respectively.

ii) Summary of restricted share unit activity

A summary of restricted share unit activity under the Sohu 2000 Stock Incentive Plan as of and for the nine months ended September 30, 2013 is presented below:


	Number of			Weighted-Average
	Units			Grant-Date
Restricted Share Units	(in thousands)			Fair Value
Unvested at January 1, 2013		255		$	61.27
Granted		0
Vested		(127	)		61.27
Forfeited		(4	)		61.27

Unvested at September 30, 2013		124			61.27

Expected to vest thereafter		93			61.27

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for restricted share units was $0.5 million and $1.7 million, respectively. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for restricted share units was $1.2 million and $3.9 million, respectively.

As of September 30, 2013, there was $0.6 million of unrecognized compensation expense related to unvested restricted share units. The expense is expected to be recognized over a weighted average period of 0.29 years. The total fair value on their respective vesting dates of restricted share units vested during the three and nine months ended September 30, 2013 was nil and $6.2 million, respectively. The total fair value on their respective vesting dates of restricted share units vested during the three and nine months ended September 30, 2012 was nil and $8.9 million, respectively.

Sohu’s 2010 Stock Incentive Plan

On July 2, 2010, Sohu adopted the Sohu 2010 Stock Incentive Plan, which provides for the issuance of up to 1,500,000 shares of common stock, including those issued pursuant to the vesting and settlement of restricted share units and pursuant to the exercise of share options. The maximum term of any issued stock right under the Sohu 2010 Stock Incentive Plan is ten years from the grant date. The Sohu 2010 Stock Incentive Plan will expire on July 1, 2020. As of September 30, 2013, 1,455,422 shares were available for grant under the Sohu 2010 Stock Incentive Plan.

A summary of restricted share unit activity under the Sohu 2010 Stock Incentive Plan as of and for the nine months ended September 30, 2013 is presented below:


	Number of			Weighted-Average
	Units			Grant-Date
Restricted Share Units	(in thousands)			Fair Value
Unvested at January 1, 2013		5		$	70.88
Granted		14			48.75
Vested		(7	)		48.75
Forfeited		(2	)		70.88

Unvested at September 30, 2013		10			55.84

Expected to vest thereafter		9			54.41

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for restricted share units was $0.2 million and $0.6 million, respectively. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for restricted share units was $0.2 million and $0.6 million, respectively.

As of September 30, 2013, there was $0.3 million of unrecognized compensation expense related to unvested restricted share units. The expense is expected to be recognized over a weighted average period of 0.4 years. The total fair value on their respective vesting dates of restricted share units vested during both the three months and the nine months ended September 30, 2013 was $0.4 million. The total fair value on their respective vesting dates of restricted share units vested during both the three months and the nine months ended September 30, 2012 was $0.25 million.

2) Changyou.com Limited Share-based Awards

Changyou’s 2008 Share Incentive Plan

Changyou’s 2008 Share Incentive Plan (the “Changyou 2008 Share Incentive Plan”) originally provided for the issuance of up to 2,000,000 ordinary shares, including those issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. In March 2009, the 2,000,000 reserved ordinary shares were subject to a ten-for-one share split effected by Changyou and became 20,000,000 ordinary shares. Most of these awards vest over a period of four years. The maximum term of any issued share right under the Changyou 2008 Share Incentive Plan is ten years from the grant date. The Changyou 2008 Share Incentive Plan will expire in August 2018.

As of September 30, 2013, Changyou had granted under the Changyou 2008 Share Incentive Plan 15,000,000 ordinary shares to Tao Wang, through Prominence Investments Ltd. (“Prominence”) and 4,781,552 restricted share units to certain of its executive officers other than Tao Wang, and to certain of its other employees. Prominence is an entity that may deemed under applicable rules of the Securities and Exchange Commission to be beneficially owned by Tao Wang.

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for awards under the Changyou 2008 Share Incentive Plan was $0.3 million and $0.9 million, respectively. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for awards under the Changyou 2008 Share Incentive Plan was $0.8 million and $2.8 million, respectively.

Share-based Awards granted before Changyou’s Initial Public Offering

For Changyou restricted ordinary shares granted to Tao Wang and to its executive officers other than Tao Wang before Changyou’s IPO, there was no share-based compensation expense recognized for either the three months or the nine months ended September 30, 2013, as these awards were fully vested in 2012. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for the above restricted ordinary shares was nil and $72,000, respectively.

For Changyou restricted share units granted to certain of its other employees before Changyou’s IPO, there was no share-based compensation expense recognized for the three months ended September 30, 2013, as these awards were fully vested in the first half of 2013. The fair value of these restricted share units as of the grant date was determined based on Changyou’s offering price for its IPO, which was $8.00 per ordinary share.

A summary of activity for the restricted share units as of and for the nine months ended September 30, 2013 is presented below:


Restricted Share Units	Number of Units (in thousands)			Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2013		81		$	8.00
Granted		0
Vested		(81	)		8.00
Forfeited		0

Unvested at September 30, 2013		0

Expected to vest thereafter		0

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for the above restricted share units was nil and negative $0.3 million, respectively. The negative $0.3 million resulted from Changyou’s true-up of the shared-based compensation expense for forfeited restricted share units in the first quarter of 2013. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for the above restricted share units was $50,000 and $0.2 million, respectively.

As of September 30, 2013, there was no unrecognized share-based compensation expense related to the unvested restricted share units. The total fair value of restricted share units vested to Changyou’s other employees on their respective vesting dates during the three and nine months ended September 30, 2013 was nil and $1.1 million, respectively. The total fair value of restricted share units vested to Changyou’s other employees on their respective vesting dates during the three and nine months ended September 30, 2012 was nil and $1.2 million, respectively.

Share-based Awards granted after Changyou’s Initial Public Offering

As of September 30, 2013, in addition to the share-based awards granted before Changyou’s IPO, Changyou had granted an aggregate of 1,585,552 restricted share units (settleable in ordinary shares) to certain of its executive officers other than Tao Wang and to certain of its employees. These restricted share units are subject to vesting over a four-year period commencing on their grant dates. Share-based compensation expense for such restricted share units is recognized on an accelerated basis over the requisite service period. The fair value of restricted share units was determined based on the market price of Changyou’s ADSs on the grant date.

A summary of activity for these restricted share units as of and for the nine months ended September 30, 2013 is presented below:


Restricted Share Units	Number of Units (in thousands)			Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2013		526		$	13.30
Granted		36			14.57
Vested		(320	)		12.70
Forfeited		(12	)		12.88

Unvested at September 30, 2013		230			14.35

Expected to vest thereafter		213			14.38

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for the above restricted share units was $0.3 million and $1.2 million, respectively. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for the above restricted share units was $0.7 million and $2.5 million, respectively.

As of September 30, 2013, there was $1.0 million of unrecognized compensation expense related to the unvested restricted share units. The expense is expected to be recognized over a weighted average period of 0.87 years. The total fair value of these restricted share units vested during the three and nine months ended September 30, 2013 was nil and $4.7 million, respectively. The total fair value of these restricted share units vested during the three and nine months ended September 30, 2012 was nil and $4.0 million, respectively.

3) Sogou Inc. Share-based Awards

Sogou 2010 Share Incentive Plan

On October 20, 2010, Sogou adopted the Sogou 2010 Share Incentive Plan (the “Sogou 2010 Share Incentive Plan”). On June 18, 2013, the Sogou 2010 Share Incentive Plan was amended to provide for the issuance of up to 36,000,000 ordinary shares of Sogou to management and key employees of Sogou and of any present or future parents or subsidiaries or variable interest entities of Sogou. The maximum term of any issued share right under the amended Sogou 2010 Share Incentive Plan is ten years from the grant date. The amended Sogou 2010 Share Incentive Plan will expire on October 19, 2020. As of September 30, 2013, Sogou had issued options for the purchase of 35,436,375 ordinary shares.

Of the 35,436,375 issued share options, 23,206,375 share options will become vested and exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. The performance target for each installment will be set at the beginning of each vesting period; therefore, for purposes of recognition of share-based compensation expense, each installment is considered to be granted at that date. As of September 30, 2013, performance targets had been set for 15,790,400 share options and, accordingly, those options subject to vesting upon service period requirements for management and key employees being met and Sogou’s achievement of performance targets were considered granted for purposes of recognition of share-based compensation expense. As of September 30, 2013, 10,040,650 share options had become vested and exercisable because both the service period and the performance requirements had been met, and a portion of the vested shares had been exercised.

8,270,000 share options will become vested and exercisable in four or five equal installments, with (i) the first installment vesting upon Sogou’s completion of an initial public offering of its ordinary shares (“Sogou’s IPO”) and the expiration of all underwriters’ lockup periods applicable to the IPO, and (ii) each of the three or four subsequent installments vesting on the first, second, third and, if applicable, fourth anniversary dates, respectively, of the closing of Sogou’s IPO.

The remaining 3,960,000 share options will become vested and exercisable in four equal installments, with (i) the first installment vesting upon the first anniversary of the occurrence of either of the following events (“Event”): (a) completion of Sogou’s IPO; (b) the consolidation of Sogou with or the acquisition of Sogou by another person or entity in a sale of all or substantially all of its assets or shares, and (ii) each of the three subsequent installments vesting on the second, third and fourth anniversary dates, respectively, of the occurrence of an Event. If there has not been an Event within 24 months from June 15, 2013 (the “Vesting Cessation Date”), all installments of the remaining 3,960,000 share options will cease to vest.

All installments of the 8,270,000 and 3,960,000 share options that are subject to vesting upon the completion of Sogou’s IPO or an Event were considered granted upon the issuance of the options. The completion of a firm commitment IPO or such an Event is considered to be a performance condition of the awards. An IPO event or such an Event is not considered to be probable until it is completed. Under ASC 718, compensation cost should be accrued if it is probable that the performance condition will be achieved and should not be accrued if it is not probable that the performance condition will be achieved. As a result, no compensation expense will be recognized related to these options until the completion of an IPO or the occurrence of an Event, and hence no share-based compensation expense was recognized for the three and nine months ended September 30, 2013 for the 8,270,000 and 3,960,000 share options that are subject to vesting upon the completion of Sogou’s IPO or an Event.

A summary of share option activity under the amended Sogou 2010 Stock Incentive Plan as of and for the nine months ended September 30, 2013 is presented below:


						Weighted
	Number			Weighted		Average
	Of			Average		Remaining
	Shares			Exercise		Contractual
Options	(in thousands)			Price		Life (Years)
Outstanding at January 1, 2013		6,345		$	0.001
Granted		17,076			0.264
Exercised		(5,339	)		0.001
Forfeited or expired		(96	)		0.001

Outstanding at September 30, 2013		17,986			0.251		8.90

Vested at September 30, 2013 and expected to vest thereafter		5,641

Exercisable at September 30, 2013		6

For the three and nine months ended September 30, 2013, total share-based compensation expense recognized for share options under the amended Sogou 2010 Share Incentive Plan was $1.7 million and $1.8 million, respectively. For the three and nine months ended September 30, 2012, total share-based compensation expense recognized for share options under the Sogou 2010 Share Incentive Plan was $1.4 million and $2.4 million, respectively.

As of September 30, 2013, there was $2.0 million of unrecognized compensation expense related to the unvested share options. The expense is expected to be recognized over a weighted average period of 0.27 years.

The fair value of the ordinary shares of Sogou was assessed using the income approach /discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the award were not publicly traded at the time of grant, and was determined with the assistance of a qualified professional appraiser using management’s estimates and assumptions. This assessment required complex and subjective judgments regarding Sogou’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made.

The fair value of the options granted to Sogou management and key employees was estimated on the date of grant using the Binomial option - pricing model (the “BP Model”) with the following assumptions used:


Granted to Employees		2013
Average risk-free interest rate		2.10%~2.87%
Exercise multiple		2~3
Expected forfeiture rate (Post-vesting)		1.3%~6.0%
Weighted average expected option life		10
Volatility rate		47.00%~49.00%
Dividend yield		0%
Fair value		0.67

Sogou estimated the risk free rate based on the yield to maturity of China Sovereign bonds denominated in United States dollars as of the valuation date. An exercise multiple was estimated as the ratio of fair value of the shares over the exercise price as of the time the option is exercised, based on consideration of research studies regarding exercise patterns based on historical statistical data. In Sogou’s valuation analysis, a multiple of two was applied for employees and a multiple of three was applied for management. Sogou estimated the forfeiture rate to be 1.3% for Sogou management’s share options granted as of September 30, 2013 and 6.0% for Sogou employees’ share options granted as of September 30, 2013. The life of the share options is the contract life of the option. Based on the option agreement, the contract life of the option is 10 years. The expected volatility at the valuation date was estimated based on the historical volatility of comparable companies for the period before the grant date with length commensurate with the expected term of the options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield is estimated to be 0%.

Share-based Awards to Sohu management

Under the Management Share Option Arrangement approved by the Board of Directors of Sohu and Sogou in March 2011, Sohu has the right to provide to Sohu management and key employees the opportunity to purchase from Sohu up to 12,000,000 ordinary shares of Sogou at a fixed exercise price of $0.625 per share. Of these 12,000,000 ordinary shares, 8,800,000 are Sogou ordinary shares previously held by Sohu and 3,200,000 are Sogou ordinary shares that were newly-issued on April 14, 2011 by Sogou to Sohu at a price of $0.625 per share, or a total of $2 million. As of September 30, 2013, Sohu had issued options for the purchase of 11,378,500 Sogou ordinary shares to Sohu management and key employees under this arrangement.

Of the 11,378,500 issued share options, 8,978,500 share options will become vested and exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. The performance target for each installment will be set at the beginning of each vesting period; therefore, for purposes of recognition of share-based compensation expense, each installment is considered to be granted at that date. As of September 30, 2013, performance targets had been set for 6,585,750 share options and, accordingly, those options vesting upon service period requirements for management and key employees being met and Sogou’s achievement of performance targets were considered granted. As of September 30, 2013, 5,105,500 share options had become vested and exercisable because both the service period and the performance requirements had been met, and all of the vested shares had been exercised.

The remaining 2,400,000 share options will become vested and exercisable in five equal installments, with (i) the first installment vesting upon Sogou’s IPO and the expiration of all underwriters’ lockup periods applicable to the IPO, and (ii) each of the four subsequent installments vesting on the first, second, third and fourth anniversary dates, respectively, of the closing of Sogou’s IPO. All installments of the 2,400,000 share options that are subject to vesting upon the completion of Sogou’s IPO were considered granted upon the issuance of the options. The completion of a firm commitment IPO is considered to be a performance condition of the awards. An IPO event is not considered to be probable until it is completed. Under ASC 718, compensation cost should be accrued if it is probable that the performance condition will be achieved and should not be accrued if it is not probable that the performance condition will be achieved. As a result, no compensation expense will be recognized related to these options until the completion of an IPO, and hence no share-based compensation expense was recognized for the three and nine months ended September 30, 2013, for the 2,400,000 share options that are subject to vesting upon the completion of Sogou’s IPO.

A summary of share option activity as of and for the nine months ended September 30, 2013 is presented below:


						Weighted
	Number			Weighted		Average
	Of			Average		Remaining
	Shares			Exercise		Contractual
Options	(in thousands)			Price		Life (Years)
Outstanding at January 1, 2013		2,178		$	0.625
Granted		4,638			0.625
Exercised		(2,936	)		0.625
Forfeited or expired		0

Outstanding at September 30, 2013		3,880			0.625		8.74

Vested at September 30, 2013 and expected to vest thereafter		1,475

Exercisable at September 30, 2013		0

For the three months and the nine months ended September 30, 2013, total share-based compensation expense recognized for share options under the Management Share Option Arrangement was $0.5 million and $0.5 million, respectively. For the three months and the nine months ended September 30, 2012, total share-based compensation expense recognized for share options under the Management Share Option Arrangement was $200,000 and $382,000, respectively.

As of September 30, 2013, there was $0.3 million of unrecognized compensation expense related to the unvested share options. The expense is expected to be recognized over a weighted average period of 0.25 years.

The method used to determine the fair value of share options granted to Sohu management and key employees was the same as the method used for the share options granted to Sogou’s management and key employees as described above, except for the assumptions used in the BP Model as presented below:


Granted to Employees		2013
Average risk-free interest rate		2.10%~2.87%
Exercise multiple		2~3
Expected forfeiture rate (Post-vesting)		0%-8%
Weighted average expected option life		10
Volatility rate		47.00%-48.00%
Dividend yield		0%
Fair value		0.27-0.38

Option Modification

In the first and second quarter of 2013, a portion of the share options granted under the amended Sogou 2010 Share Incentive Plan and the Management Share Option Arrangement were exercised early, and the resulting Sogou ordinary shares were transferred to a trust with the original option grantees as beneficiaries. The trust will distribute the shares to those beneficiaries in installments based on the vesting requirements under the original option agreements. Although this trust arrangement caused a modification of the terms of these share options, the modification was not considered substantive; therefore no incremental fair value related to these shares resulted from the modification, and the remaining share-based compensation expense for these shares will continue to be recognized over the original remaining vesting period.

As of September 30, 2013, 19,245,000 share options granted under the amended Sogou 2010 Share Incentive Plan and 1,225,000 share options granted under the Management Share Option Arrangement, or a total of 20,470,000 share options, were exercised early.

4) Sohu Video Share-based Awards and 7Road Share-based Awards

See Note 3 - Share-Based Compensation Expense.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Business Transactions

9 Months Ended

Sep. 30, 2013

Business Transactions [Abstract]

Business Transactions

11. Business Transactions

Sogou Transactions

On October 22, 2010, Sogou issued and sold 24.0 million, 14.4 million and 38.4 million, respectively, of its newly-issued Series A Preferred Shares to Alibaba, China Web and Photon for $15 million, $9 million, and $24 million, respectively. On June 29, 2012, Sohu purchased Alibaba’s 24.0 million Sogou Series A Preferred Shares for a purchase price of $25.8 million.

On September 16, 2013, Sogou entered into a series of agreements with Tencent, Sohu Search and Photon pursuant to which Sogou issued Series B Preferred Shares and Class B Ordinary Shares to Tencent for a net amount of $448 million in cash and Tencent transferred its Soso search-related businesses and certain other assets to Sogou. Also on that date, Sogou entered into Repurchase Option Agreements with Sohu Search and Photon, and a Repurchase/put Option Agreement with China Web, with respect to all of the Series A Preferred Shares of Sogou held by Sohu Search and China Web, and a portion of the Series A Preferred Shares of Sogou held by Photon. On September 17, 2013, Sogou paid a special dividend to the three holders of Series A Preferred Shares of Sogou in an aggregate amount of $301 million, of which Sohu received $161 million, Photon received $43 million, and China Web received $97 million. See Note 1 - The Company and Basis of Presentation.

As of September 30, 2013, Sogou had outstanding a combined total of 370,771,658 ordinary shares and preferred shares, consisting of shares held as follows:

(i)

Sohu: 134,107,750 Class A Ordinary Shares and 24,000,000 Series A Preferred Shares. Of the Class A Ordinary Shares, 6,907,750 shares are subject to purchase under options held by Sohu management and key employees. All of the 24,000,000 Series A Preferred Shares are subject to repurchase by Sogou commencing March 16, 2014;

(ii)	Photon: 38,400,000 Series A Preferred Shares, of which 6,400,000 are subject to repurchase by Sogou commencing March 16, 2014;

(iii)

China Web: 14,400,000 Series A Preferred Shares, all of which are subject to China Web’s right to put the shares to Sogou at any time prior to July 31, 2014 and all of which are subject to repurchase by Sogou at any time from March 16, 2014 to July 31, 2014;

(iv)	Tencent: 79,368,421 non-voting Class B Ordinary Shares and 65,431,579 Series B Preferred Shares; and

(v)	Certain employees of Sogou and Sohu: 15,063,908 Class A Ordinary Shares.

As Sohu is Sogou’s controlling shareholder, Sohu consolidates Sogou in the Sohu Group’s consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu.

As of September 30, 2013, a portion of Sogou options granted to Sogou and Sohu top management and key employees were still unvested and were settable upon the achievement of different vesting conditions. Because no ordinary shares will be issued with respect to share options granted by Sogou until they are vested and exercised, the share options granted by Sogou that have not vested and vested share options that have not yet been exercised are not included as outstanding shares of Sogou and have no impact on the Sohu Group’s basic net income per share. Unvested share options with the performance targets achieved and vested share options that have not yet been exercised do, however, have a dilutive impact on the Sohu Group’s dilutive net income per share. See Note 15 - Net Income per Share.

Terms of Preferred Shares of Sogou

In connection with the Sogou-Tencent Transactions, Sogou’s shareholders adopted a Fifth Amended and Restated Memorandum of Association and Second Amended and Restated Articles of Association (together, the “Revised Sogou Memorandum and Articles”), which became effective on September 16, 2013. The following is a summary of some of the key terms of the Sogou Series A Preferred Shares and Series B Preferred Shares (collectively, the “Preferred Shares”) under the Revised Sogou Memorandum and Articles.

Dividend Rights

Sogou may not declare or pay dividends on its Class A Ordinary Shares or Class B Ordinary Shares (collectively, “Ordinary Shares”) unless the holders of the Preferred Shares then outstanding first receive a dividend on each outstanding Preferred Share in an amount at least equal to the sum of (i) the dividends that would have been payable to the holder of such Preferred Share if such share had been converted into Ordinary Shares, at the then-applicable conversion rate, immediately prior to the record date for such dividend, and (ii) all accrued and unpaid Accruing Dividends. “Accruing Dividends” are calculated from the date of issuance of the Series A Preferred Shares at the rate per annum of $0.0375 per Series A Preferred Share and from the date of issuance of the Series B Preferred Shares at the rate per annum of $0.411 per Series B Preferred Share.

Liquidation Rights

In the event of any “Liquidation Event,” such as the liquidation, dissolution or winding up of Sogou, a merger or consolidation of Sogou resulting in a change of control, the sale of substantially all of Sogou’s assets or similar events, the holders of Series B Preferred Shares are entitled to receive an amount per share equal to the greater of (i) $6.847 plus any unpaid Accruing Dividends or (ii) such amount per share as would have been payable if the Series B Preferred Shares had been converted into Ordinary Shares prior the Liquidation Event, and holders of Series A Preferred Shares are entitled to receive, after payment to the holders of the Series B Preferred Shares but before any payment to holders of Ordinary Shares, an amount equal to the greater of (i) 1.3 times their original investment in the Series A Preferred Shares plus all accrued but unpaid Accruing Dividends or (ii) such amount per share as would be payable if the Series A Preferred Shares had been converted into Ordinary Shares immediately prior to the Liquidation Event.

Redemption Rights

The Preferred Shares are not redeemable at the option of the holders.

Conversion Rights

Each Preferred Share is convertible, at the option of the holder, at any time, and without the payment of additional consideration by the holder. Each Preferred Share is convertible into such number of Class A Ordinary Shares as is determined, in the case of Series A Preferred Shares, by dividing $0.625 by the then-effective conversion price for Series A Preferred Shares, which is initially $0.625, and, in the case of Series B Preferred Shares, by dividing $7.267 by the then-effective conversion price for Series B Preferred Shares, which is initially $7.267. The conversion prices of the Preferred Shares are subject to adjustment on a weighted average basis upon the issuance of additional equity shares, or securities convertible into equity shares, at a price per share less than $0.625, in the case of Series A Preferred Shares, or less than $7.267, in the case of Series B Preferred Shares, subject to certain customary exceptions, such as shares issued pursuant to the amended Sogou 2010 Share Incentive Plan. Each Preferred Share will be automatically converted into Class A Ordinary Shares of Sogou upon the closing of a qualified initial public offering of Sogou based on the then-effective conversion ratio of such Preferred Share, which is currently one-for-one for both Series A Preferred Shares and Series B Preferred Shares.

Voting Rights

Each holder of Preferred Shares is entitled to cast the number of votes equal to the number of Class A Ordinary Shares into which the Preferred Shares held by such holder are then convertible.

Other Rights

The holders of Preferred Shares have various other rights typical of preferred share investments.

Terms of Class B Ordinary Shares of Sogou

The Class B Ordinary Shares have rights identical to those of the Class A Ordinary Shares, except that Class B Ordinary Shares do not have voting rights unless the holders of at least a majority of the then outstanding Class B Ordinary Shares elect, by written notice to Sogou, to convert them into shares with voting rights.

7Road Transactions

On May 1, 2013, Changyou entered into an agreement to acquire all of the ordinary shares of 7Road held by the noncontrolling shareholders, representing 28.074% of the outstanding share capital of 7Road, for aggregate cash consideration of approximately $78 million. The acquisition closed on June 5, 2013. Effective with the closing, 7Road became an indirect wholly-owned subsidiary of Changyou, and Changyou’s VIE Gamease became the sole shareholder of 7Road’s VIE Shenzhen 7Road. As of September 30, 2013, Changyou had paid $76 million of the total cash consideration. The remaining $2 million will be settled in June 2014.

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details

Business Combination

9 Months Ended

Sep. 30, 2013

Business Combination [Abstract]

Business Combination

12. Business Combination

On September 16, 2013, as part of the Sogou-Tencent Transactions, Sogou acquired from certain subsidiaries of Tencent, Shi Ji Guang Su, which conducts Soso search-related businesses, and other related assets, for cash consideration of approximately $27.6 million (the “Shi Ji Guang Su Acquisition”). As of September 30, 2013, Sogou had paid $3.3 million of the consideration. The remaining amount will be settled prior to March 16, 2014. The Sohu Group began to consolidate Shi Ji Guang Su’s financial statements commencing September 16, 2013.

On the acquisition date, the allocation of the consideration of the assets acquired and liabilities assumed based on their fair value was as follows (in thousands):


	As of September 16, 2013
Cash	$	3,249
Receivables		7,967
Fixed assets acquired		21,964
Goodwill		2,405
Identifiable intangible assets acquired		5,686
Liabilities		(13,653	)

Total	$	27,618

The fixed assets acquired in the Shi Ji Guang Su Acquisition consist primarily of computer equipment and hardware. The identifiable intangible assets acquired in the Shi Ji Guang Su Acquisition consist primarily of developed technologies, trademarks and domain names. These identifiable intangible assets were valued using the income approach. The excess of the purchase price over identifiable tangible and intangible assets acquired and identifiable liabilities assumed was recorded as goodwill, which is not amortized but is tested for impairment.

Based on an assessment of the acquired company’s financial performance, the acquired company is not considered material to the Sohu Group. Thus the Sohu Group’s management concluded that the presentation of pro forma financial information with respect to the results of operations of the Sohu Group including the acquired company is not necessary.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Mezzanine Equity

9 Months Ended

Sep. 30, 2013

Mezzanine Equity [Abstract]

Mezzanine Equity

13. Mezzanine Equity

Mezzanine Equity consists of noncontrolling interest in 7Road and a put option pursuant to which the former noncontrolling shareholders would have had the right to put their ordinary shares in 7Road to Changyou at a pre-determined price if 7Road had achieved specified performance milestones before the expiration of the put option and 7Road did not complete an IPO on NASDAQ, the NYSE or the HKEX. The put option was due to expire in 2014. Since the occurrence of the sale was not solely within the control of Changyou, the noncontrolling interest was classified as mezzanine equity instead of permanent equity in the Sohu Group’s and Changyou’s consolidated financial statements.

Under ASC 480-10, the Sohu Group calculates, on an accumulative basis from the acquisition date, (i) the amount of accretion that would increase the balance of noncontrolling interest to its estimated redemption value over the period from the date of the Shenzhen 7Road acquisition to the earliest redemption date of the noncontrolling interest in 7Road and (ii) the amount of net profit attributable to noncontrolling shareholders of 7Road based on their ownership percentage. The carrying value of the noncontrolling interest as mezzanine equity is adjusted by an accumulative amount equal to the higher of (i) and (ii).

On May 1, 2013, Changyou entered into an agreement to acquire all of the ordinary shares of 7Road held by the noncontrolling shareholders. The acquisition closed on June 5, 2013. Under ASC 810-10, changes in a parent’s ownership interest while the parent retains control of its subsidiary are accounted for as equity transactions, and do not impact net income or comprehensive income in the consolidated financial statements. Following the closing of the acquisition, $2.4 million, representing the excess of the amount of the mezzanine-classified noncontrolling interest in 7Road over the purchase price as of the closing date, was recorded in the Sohu Group’s equity accounts.

For the three and nine months ended September 30, 2013, accretion charges of nil and $17.8 million, respectively, compared to $4.5 million and $6.7 million, respectively, for the three and nine months ended September 30, 2012, were recorded in the Sohu Group’s statements of comprehensive income as net income attributable to the mezzanine-classified noncontrolling interest shareholders of 7Road.

Noncontrolling Interest

9 Months Ended

Sep. 30, 2013

Noncontrolling Interest [Abstract]

Noncontrolling Interest

14. Noncontrolling Interest

The primary majority-owned subsidiaries and VIEs of the Sohu Group which are consolidated in its consolidated financial statements but with noncontrolling interest recognized are Changyou and Sogou.

Noncontrolling Interest for Changyou

As Sohu is Changyou’s controlling shareholder, Changyou’s financial results have been consolidated with those of Sohu for all periods presented. To reflect the economic interest in Changyou held by shareholders other than Sohu (the “Changyou noncontrolling shareholders”), Changyou’s net income attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on their share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in Sohu’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets.

Noncontrolling Interest for Sogou

As Sohu is Sogou’s controlling shareholder, Sogou’s financial results have been consolidated with those of Sohu for all periods presented. To reflect the economic interest in Sogou held by shareholders other than Sohu (the “Sogou noncontrolling shareholders”), Sogou’s net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity /(deficit) and adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ original investments in Series A Preferred Shares, Series B Preferred Shares and Class B Ordinary Shares are accounted for as a noncontrolling interest classified as permanent equity in the Sohu Group’s consolidated balance sheets, as redemption of the noncontrolling interest is solely within the control of Sohu. These treatments are based on the terms governing investment by the Sogou noncontrolling shareholders in the Preferred Shares of Sogou (the “Terms of Preferred Shares of Sogou”), the terms of Sogou’s restructuring in 2010, Sohu’s purchase of Sogou Series A Preferred Shares from Alibaba, and the terms of Class B Ordinary Shares of Sogou.

By virtue of these terms, as Sogou has been losing money since its restructuring in 2010, the net losses have been and will be allocated in the following order:

(i)	net losses were allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares until their basis in Sogou decreased to zero;

(ii)	additional net losses were allocated to holders of Sogou Series A Preferred Shares until their basis in Sogou decreased to zero;

(iii)

additional net losses will be allocated to the holder of Sogou Series B Preferred Shares until its basis in Sogou decreases to zero; and

(iv)	further net losses will be allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou.

Any subsequent net income from Sogou will be allocated in the following order:

(i)	net income will be allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increases to zero;

(ii)	additional net income will be allocated to the holder of Sogou Series B Preferred Shares to bring its basis back;

(iii)

additional net income will be allocated to holders of Sogou Series A Preferred Shares to bring their basis back;

(iv)	further net income will be allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares to bring their basis back; and

(v)	further net income will be allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou.

Noncontrolling Interest in the Consolidated Balance Sheets

As of September 30, 2013 and December 31, 2012, noncontrolling interest in the consolidated balance sheets was $481.8 million and $231.0 million, respectively.


	As of
	September 30, 2013 (in thousands)		December 31, 2012 (in thousands)
Changyou	$	279,065	$	203,995
Sogou		200,314		24,645
Others		2,446		2,354

Total	$	481,825	$	230,994

Noncontrolling Interest of Changyou

As of September 30, 2013 and December 31, 2012, noncontrolling interest of Changyou of $279.1 million and $204.0 million, respectively, was recognized in the Sohu Group’s consolidated balance sheets, representing a 32% economic interest in Changyou’s net assets held by shareholders other than Sohu and reflecting the reclassification of Changyou’s share-based compensation expense from shareholders’ additional paid-in capital to noncontrolling interest.

Noncontrolling Interest of Sogou

As of September 30, 2013 and December 31, 2012, noncontrolling interest of Sogou of $200.3 million and $24.6 million, respectively, was recognized in the Sohu Group’s consolidated balance sheets, representing Sogou’s cumulative results of operations attributable to shareholders other than Sohu, Sogou’s share-based compensation expense, and the investments of shareholders other than Sohu in Series A Preferred Shares, Series B Preferred Shares and Class B Ordinary Shares of Sogou, and the adjustment of the investment basis of shareholders other than Sohu due to the special dividend paid to holders of Series A Preferred Shares of Sogou on September 17, 2013. The increase from December 31, 2012 to September 30, 2013 was mainly due to the net impact of Tencent’s investment in Sogou on September 16, 2013, and the adjustment of the investment basis of shareholders other than Sohu due to the special dividend paid to holders of Series A Preferred Shares of Sogou on September 17, 2013.

Noncontrolling Interest in the Consolidated Statements of Comprehensive Income

For the three and nine months ended September 30, 2013, net income attributable to noncontrolling interests in the consolidated statements of comprehensive income was $22.9 million and $70.4 million, respectively, compared with $21.1 million and $57.6 million, respectively, for the three months and nine months ended September 30, 2012.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Changyou	$	23,596		$	23,410		$	73,486		$	65,425
Sogou		(1,143	)		(2,232	)		(3,109	)		(7,780	)
Others		402			(32	)		49			(27	)

Total	$	22,855		$	21,146		$	70,426		$	57,618

Noncontrolling Interest of Changyou

For the three months ended September 30, 2013 and 2012, $23.6 million and $23.4 million, respectively, in net income attributable to the noncontrolling interest of Changyou was recognized in the Sohu Group’s consolidated statements of comprehensive income, representing a 32% economic interest in Changyou attributable to shareholders other than Sohu.

Noncontrolling Interest of Sogou

For the three months ended September 30, 2013 and 2012, $1.1 million and $2.2 million, respectively, in net loss attributable to the noncontrolling interest of Sogou was recognized in the Sohu Group’s consolidated statements of comprehensive income, representing Sogou’s net loss attributable to shareholders other than Sohu.

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References+ Details

Net Income per Share

9 Months Ended

Sep. 30, 2013

Net Income per Share [Abstract]

Net Income per Share

15. Net Income per Share

Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common 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 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 per share. Additionally, for purposes of calculating the numerator of diluted net income per share, the net income attributable to the Sohu Group is adjusted as follows:

(1)

Changyou’s net income attributable to the Sohu Group is determined using the percentage that the weighted average number of Changyou shares held by Sohu represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, instead of by the percentage held by Sohu of the total economic interest in Changyou, which is used for the calculation of basic net income per share.

For the third quarter of 2013, the percentage used for the calculation of basic and dilutive net income per share was 67.6% and 67.2%, respectively. In the calculation of the Sohu Group’s diluted net income per share, all of Changyou’s existing unvested restricted share units, and vested restricted share units that have not yet been settled are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu in Changyou to decrease from 67.6% to 67.2%. As a result, Changyou’s net income attributable to the Sohu Group on a diluted basis decreased accordingly. This impact is presented as “incremental dilution from Changyou” in the table below.

(2)

Sogou’s net income /(loss) attributable to the Sohu Group is determined using the percentage that the weighted average number of Sogou shares held by Sohu represents of the weighted average number of Sogou Ordinary Shares, Series A Preferred Shares, Series B Preferred Shares, shares issuable upon the conversion of convertible preferred shares under the if-converted method, and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, instead of by Sogou’s net income /(loss) allocated to the Sohu Group by virtue of the Terms of Preferred Shares of Sogou, the terms of Sogou’s restructuring in 2010, Sohu’s purchase of Sogou Series A Preferred Shares from Alibaba, and the terms of Class B Ordinary Shares of Sogou, which is used for the calculation of basic net income per share.

In the calculation of the Sohu Group’s basic net income per share, Sogou’s net income /(loss) attributable to the Group is determined according to the Terms of Preferred Shares of Sogou, the terms of Sogou’s restructuring in 2010, Sohu’s purchase of Sogou Series A Preferred Shares from Alibaba, and the terms of Class B Ordinary Shares of Sogou. For the third quarter of 2013, in the calculation of the Sohu Group’s diluted net income per share, assuming a dilutive effect, the percentage of 63% was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested share options with the performance targets achieved as well as vested but unexercised 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 above difference is presented as “incremental dilution from Sogou” in the table below.

As discussed in Note 1 - The Company and Basis of Presentation, on June 29, 2012, Sohu purchased 24 million Sogou Series A Preferred Shares from Alibaba, and this transaction gave rise to a deemed dividend amounting to $14.2 million, which was the difference between the price Sohu paid to Alibaba for the Series A Preferred Shares and the carrying amount of these 24.0 million Series A Preferred Shares in the Group’s consolidated financial statements. This deemed dividend has been subtracted from the Net income attributable to Sohu.com Inc. for the nine months ended September 30, 2012 in the table below, to revise the historical inappropriate treatment when calculating the basic and diluted net income per share attributable to Sohu.com Inc.

The portion of the special dividend paid by Sogou on September 17, 2013 to holders of Series A Preferred Shares of Sogou other than Sohu, in the amount of $139.7 million, is a payment to noncontrolling preferred shareholders, of which Sohu, as a holder of ordinary shares of Sogou, is deemed to have contributed $82.4 million. This $82.4 million has also been subtracted from the Net income attributable to Sohu.com Inc. for the three months and nine months ended September 30, 2013 to arrive at net income available to ordinary shareholders in the calculation of net income per share attributable to Sohu.com Inc.

The following table presents the calculation of the Sohu Group’s basic and diluted net income per share (in thousands, except per share data).


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Net income /(loss) attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou series A preferred shareholders)	$	(64,189	)	$	25,881		$	(18,132	)	$	47,552

Effect of dilutive securities:
Incremental dilution from Changyou		(297	)		(510	)		(723	)		(1,945	)
Incremental dilution from Sogou		(535	)		(1,356	)		(1,673	)		(4,813	)

Net income /(loss) attributable to Sohu.com Inc., diluted	$	(65,021	)	$	24,015		$	(20,528	)	$	40,794

Denominator:
Weighted average basic common shares outstanding		38,288			38,022			38,239			38,036
Effect of dilutive securities:
Share options and restricted share units		234			322			242			356

Weighted average diluted common shares outstanding		38,522			38,344			38,481			38,392

Basic net income /(loss) per share attributable to Sohu.com Inc.	$	(1.68	)	$	0.68		$	(0.47	)	$	1.25

Diluted net income /(loss) per share attributable to Sohu.com Inc.	$	(1.69	)	$	0.63		$	(0.53	)	$	1.06

Segment operating information by segment

The entire disclosure for earnings per share.

+ References+ Details

Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

From October 1, 2013 to November 8, 2013, Changyou repurchased an additional 284,700 of its ADSs, representing 569,400 ordinary shares, at an aggregate cost of approximately $8.2 million, under Changyou’s ADSs repurchase program discussed above.

Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Information [Abstract]


	Three Months Ended September 30, 2013
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	110,008		$	14,524		$	7,036		$	131,568		$	56,940		$	183,068		$	(3,253	)	$	368,323
Segment cost of revenues		(60,512	)		(8,108	)		(71	)		(68,691	)		(26,687	)		(30,093	)		109			(125,362	)

Segment gross profit /(loss)	$	49,496		$	6,416		$	6,965			62,877			30,253			152,975			(3,144	)		242,961

SBC (2) in cost of revenues											(59	)		(24	)		(45	)		0			(128	)

Gross profit											62,818			30,229			152,930			(3,144	)		242,833

Operating expenses:
Product development											(21,758	)		(17,700	)		(30,181	)		0			(69,639	)
Sales and marketing											(54,748	)		(10,673	)		(28,092	)		3,144			(90,369	)
General and administrative											(11,742	)		(2,952	)		(12,872	)		0			(27,566	)
SBC (2) in operating expenses											(542	)		(5,389	)		(286	)		3,147			(3,070	)

Total operating expenses											(88,790	)		(36,714	)		(71,431	)		6,291			(190,644	)

Operating profit /(loss)											(25,972	)		(6,485	)		81,499			3,147			52,189
Other income /(expense) (3)											162,372			(27	)		381			(161,193	)		1,533
Interest income											1,637			231			5,727			0			7,595
Exchange difference											(170	)		49			(1,184	)		0			(1,305	)
Income /(loss) before income tax expense											137,867			(6,232	)		86,423			(158,046	)		60,012

Income tax expense											(5,328	)		0			(13,595	)		0			(18,923	)

Net income										$	132,539		$	(6,232	)	$	72,828		$	(158,046	)	$	41,089


Note (1): The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares.

	Three Months Ended September 30, 2012
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	68,217		$	14,312		$	2,935		$	85,464		$	37,295		$	165,782		$	(3,163	)	$	285,378
Segment cost of revenues		(35,620	)		(9,474	)		(841	)		(45,935	)		(19,715	)		(30,908	)		41			(96,517	)

Segment gross profit /(loss)	$	32,597		$	4,838		$	2,094			39,529			17,580			134,874			(3,122	)		188,861

SBC (2) in cost of revenues											(133	)		(21	)		(78	)		0			(232	)

Gross profit											39,396			17,559			134,796			(3,122	)		188,629

Operating expenses:
Product development											(16,916	)		(11,034	)		(17,728	)		0			(45,678	)
Sales and marketing											(36,744	)		(7,693	)		(16,353	)		3,122			(57,668	)
General and administrative											(8,842	)		(1,524	)		(7,587	)		0			(17,953	)
SBC (2) in operating expenses											(1,030	)		(1,931	)		(715	)		65			(3,611	)

Total operating expenses											(63,532	)		(22,182	)		(42,383	)		3,187			(124,910	)

Operating profit /(loss)											(24,136	)		(4,623	)		92,413			65			63,719
Other income /(expense) (3)											137,940			61			(1,787	)		(136,325	)		(111	)
Interest income											2,297			73			3,604			0			5,974
Exchange difference											88			31			548			0			667
Income /(loss) before income tax expense											116,189			(4,458	)		94,778			(136,260	)		70,249

Income tax expense											(1,373	)		0			(17,354	)		0			(18,727	)

Net income										$	114,816		$	(4,458	)	$	77,424		$	(136,260	)	$	51,522


Note (1): The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination for other income is primarily for the portion paid to Sohu of a special one-time cash dividend paid by Changyou to its shareholders.

	Nine Months Ended September 30, 2013
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	277,974		$	43,610		$	14,190		$	335,774		$	146,144		$	543,024		$	(10,119	)	$	1,014,823
Segment cost of revenues		(151,105	)		(26,342	)		(2,180	)		(179,627	)		(71,972	)		(91,098	)		329			(342,368	)

Segment gross profit /(loss)	$	126,869		$	17,268		$	12,010			156,147			74,172			451,926			(9,790	)		672,455

SBC (2) in cost of revenues											(197	)		(29	)		(70	)		0			(296	)

Gross profit											155,950			74,143			451,856			(9,790	)		672,159

Operating expenses:
Product development											(62,566	)		(45,131	)		(76,364	)		0			(184,061	)
Sales and marketing											(142,581	)		(28,047	)		(59,559	)		9,790			(220,397	)
General and administrative											(29,192	)		(7,020	)		(38,689	)		0			(74,901	)
SBC (2) in operating expenses											(1,701	)		(5,800	)		(875	)		3,149			(5,227	)

Total operating expenses											(236,040	)		(85,998	)		(175,487	)		12,939			(484,586	)

Operating profit /(loss)											(80,090	)		(11,855	)		276,369			3,149			187,573
Other income /(expense) (3)											164,533			59			2,197			(161,193	)		5,596
Interest income											5,275			837			13,682			0			19,794
Exchange difference											(752	)		196			(4,718	)		0			(5,274	)
Income /(loss) before income tax expense											88,966			(10,763	)		287,530			(158,044	)		207,689
Income tax expense											(11,079	)		(6	)		(44,107	)		0			(55,192	)

Net income										$	77,887		$	(10,769	)	$	243,423		$	(158,044	)	$	152,497

Note (1):

The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment.

Note (2):

“SBC” stands for share-based compensation expense.

Note (3):

The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares.


	Nine Months Ended September 30, 2012
	Brand Advertising, Mobile and Others
	Brand Advertising			Mobile			Others			Brand Advertising, Mobile and Others			Sogou			Changyou			Eliminations			Consolidated
Revenues (1)	$	188,117		$	43,261		$	6,210		$	237,588		$	90,470		$	449,888		$	(10,237	)	$	767,709
Segment cost of revenues		(120,915	)		(28,535	)		(1,770	)		(151,220	)		(48,992	)		(75,700	)		223			(275,689	)

Segment gross profit /(loss)	$	67,202		$	14,726		$	4,440			86,368			41,478			374,188			(10,014	)		492,020

SBC (2) in cost of revenues											(117	)		(64	)		(245	)		0			(426	)

Gross profit											86,251			41,414			373,943			(10,014	)		491,594

Operating expenses:
Product development											(46,400	)		(27,911	)		(50,597	)		0			(124,908	)
Sales and marketing											(95,522	)		(18,277	)		(40,505	)		10,014			(144,290	)
General and administrative											(23,543	)		(4,235	)		(23,046	)		0			(50,824	)
Impairment of intangible assets via acquisitions of businesses											0			0			(2,906	)		0			(2,906	)
SBC (2) in operating expenses											(3,538	)		(3,519	)		(2,784	)		65			(9,776	)

Total operating expenses											(169,003	)		(53,942	)		(119,838	)		10,079			(332,704	)

Operating profit /(loss)											(82,752	)		(12,528	)		254,105			65			158,890
Other income /(expense) (3)											140,495			60			(910	)		(136,325	)		3,320
Interest income											8,812			261			10,619			0			19,692
Exchange difference											188			58			(177	)		0			69
Income /(loss) before income tax expense											66,743			(12,149	)		263,637			(136,260	)		181,971
Income tax expense											(6,187	)		0			(49,694	)		0			(55,881	)

Net income										$	60,556		$	(12,149	)	$	213,943		$	(136,260	)	$	126,090

Note (1):

The intercompany elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment.

Note (2):

“SBC” stands for share-based compensation expense.

Note (3):

The elimination for other income is primarily for the portion paid to Sohu of a special one-time cash dividend paid by Changyou to its shareholders.

Segment assets information by segment


	As of September 30, 2013
	Brand Advertising, Mobile and Others		Sogou		Changyou		Eliminations			Consolidated
Cash and cash equivalents	$	502,934	$	236,640	$	501,268	$	0		$	1,240,842
Accounts receivable, net		110,745		12,880		29,963		(304	)		153,284
Fixed assets, net		249,956		61,965		234,307		0			546,228
Total assets (1)	$	1,213,104	$	333,464	$	1,400,763	$	(158,984	)	$	2,788,347

Note (1):

The elimination for segment assets mainly consists of elimination of long-term investments in subsidiary and associate companies.


	As of December 31, 2012
	Brand Advertising, Mobile and Others		Sogou		Changyou		Eliminations			Consolidated
Cash and cash equivalents	$	433,777	$	33,119	$	366,639	$	0		$	833,535
Accounts receivable, net		68,593		6,481		23,364		(40	)		98,398
Fixed assets, net		70,262		43,861		64,828		0			178,951
Total assets (1)	$	1,038,741	$	87,537	$	1,114,513	$	(158,154	)	$	2,082,637

Note (1):

The elimination for segment assets mainly consists of elimination of long-term investments in subsidiary and associate companies.

Share-Based Compensation Expense (Tables)

9 Months Ended

Sep. 30, 2013

Share-Based Compensation Expense [Abstract]

Share-based compensation expense recognized in costs and /or expenses


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Share-based compensation expense
Cost of revenues	$	128	$	232	$	296	$	426
Product development expenses		912		1,316		1,670		4,019
Sales and marketing expenses		359		582		732		1,613
General and administrative expenses		1,799		1,713		2,825		4,144

	$	3,198	$	3,843	$	5,523	$	10,202

Share-based compensation expense recognized for share-based awards of Sohu, Changyou and Sogou


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Share-based compensation expense
For Sohu share-based awards	$	730	$	1,440	$	2,313	$	4,621
For Changyou share-based awards		312		750		884		2,769
For Sogou share-based awards		2,156		1,653		2,326		2,812

	$	3,198	$	3,843	$	5,523	$	10,202

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Measurements [Abstract]

Financial instruments, measured at fair value


			Fair value measurements at reporting date using
Items	As of September 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	72,888	$	0	$	72,888	$	0
Restricted time deposits		374,987		0		374,987		0
Short-term investments		24,369		0		24,369		0
Investments in debt securities		81,327		0		0		81,327

Total Assets	$	553,571	$	0	$	472,244	$	81,327


Put option recognized as other short-term liability	$	6,192	$	0	$	0	$	6,192


			Fair value measurements at reporting date using
Items	As of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	291,945	$	0	$	291,945	$	0
Restricted time deposits		246,839		0		246,839		0
Short-term investments		54,901		0		54,901		0
Investments in debt securities		79,548		0		0		79,548

Total	$	673,233	$	0	$	593,685	$	79,548

Reconciliation of fair value measurements using significant unobservable inputs (level 3)


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Debt Securities		Put Option
Beginning balance at December 31, 2012	$	79,548	$	0
Transactions:
Initial fair value of recognition		0		6,048
Fair value change		0		144
Currency translation adjustment		1,779		0

Ending balance at September 30, 2013	$	81,327	$	6,192

Goodwill (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill [Abstract]

Carrying value of goodwill by segment


	Brand Advertising			Mobile			Sogou		Changyou			Total
Balance as of December 31, 2012
Goodwill	$	42,093		$	15,942		$	2,047	$	140,122		$	200,204
Accumulated impairment losses		(19,846	)		(15,942	)		0		(5,201	)		(40,989	)

	$	22,247		$	0		$	2,047	$	134,921		$	159,215

Transactions in 2013
Acquisition of Soso search-related businesses from Tencent		0			0			2,405		0			2,405
Foreign currency translation adjustment		6			0			48		2,787			2,841

Balance as of September 30, 2013	$	22,253		$	0		$	4,500	$	137,708		$	164,461

Balance as of September 30, 2013
Goodwill	$	42,099		$	15,942		$	4,500	$	142,909		$	205,450
Accumulated impairment losses		(19,846	)		(15,942	)		0		(5,201	)		(40,989	)

	$	22,253		$	0		$	4,500	$	137,708		$	164,461

VIEs (Tables)

9 Months Ended

Sep. 30, 2013

VIEs [Abstract]

Financial information of consolidated VIEs


	As of
	September 30, 2013		December 31, 2012
ASSETS:
Cash and cash equivalents	$	46,631	$	62,638
Short-term investments		10,337		54,106
Accounts receivable, net		97,941		80,671
Other current assets		43,806		30,322
Intercompany receivables due from subsidiaries		260,930		109,728

Total current assets		459,645		337,465

Goodwill		128,949		126,516
Prepaid and other non-current assets		54,242		57,793

Total assets	$	642,836	$	521,774

LIABILITIES:
Accounts payable	$	11,067	$	6,958
Accrued and other short-term liabilities		201,127		105,322
Receipts in advance and deferred revenue		64,765		54,150
Intercompany payables due to subsidiaries		30,962		36,446

Total current liabilities		307,921		202,876

Other long-term liabilities		4,604		3,846

Total liabilities	$	312,525	$	206,722


	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Net revenue	$	259,362	$	233,802	$	759,948	$	639,947
Net income	$	5,425	$	38,439	$	198,853	$	92,100


Cash flows of Sohu’s VIEs	Nine months ended September 30,
	2013			2012
Net cash provided by /(used in) operating activities	$	6,312		$	(16,930	)
Net cash (used in) /provided by investing activities		(574	)		143
Net cash used in financing activities	$	0		$	(474	)


Cash flows of Changyou’s VIEs	Nine months ended September 30,
	2013			2012
Net cash provided by operating activities	$	29,225		$	41,843
Net cash used in investing activities		(51,434	)		(31,558	)
Net cash used in financing activities	$	0		$	(13,105	)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References+ Details

Sohu.com Inc. Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Sohu 2000 Stock Incentive Plan [Member]

Share option activity


						Weighted
	Number			Weighted		Average		Aggregate
	Of			Average		Remaining		Intrinsic
	Shares			Exercise		Contractual		Value (1)
Options	(in thousands)			Price		Life (Years)		(in thousands)
Outstanding at January 1, 2013		242		$	19.36		1.91	$	6,781
Exercised		(63	)		15.06
Forfeited or expired		(1	)		9.07

Outstanding at September 30, 2013		178			20.91		1.43		10,336

Vested at September 30, 2013		178			20.91		1.43		10,336

Exercisable at September 30, 2013		178			20.91		1.43		10,336

Note (1):

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]


	Number of			Weighted-Average
	Units			Grant-Date
Restricted Share Units	(in thousands)			Fair Value
Unvested at January 1, 2013		255		$	61.27
Granted		0
Vested		(127	)		61.27
Forfeited		(4	)		61.27

Unvested at September 30, 2013		124			61.27

Expected to vest thereafter		93			61.27

Sohu 2010 Stock Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]


	Number of			Weighted-Average
	Units			Grant-Date
Restricted Share Units	(in thousands)			Fair Value
Unvested at January 1, 2013		5		$	70.88
Granted		14			48.75
Vested		(7	)		48.75
Forfeited		(2	)		70.88

Unvested at September 30, 2013		10			55.84

Expected to vest thereafter		9			54.41

Share-based Awards Granted before Changyou's Initial Public Offering [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]


Restricted Share Units	Number of Units (in thousands)			Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2013		81		$	8.00
Granted		0
Vested		(81	)		8.00
Forfeited		0

Unvested at September 30, 2013		0

Expected to vest thereafter		0

Share-based Awards Granted after Changyou's Initial Public Offering [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]


Restricted Share Units	Number of Units (in thousands)			Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2013		526		$	13.30
Granted		36			14.57
Vested		(320	)		12.70
Forfeited		(12	)		12.88

Unvested at September 30, 2013		230			14.35

Expected to vest thereafter		213			14.38

Sogou 2010 Share Incentive Plan [Member]

Share option activity


						Weighted
	Number			Weighted		Average
	Of			Average		Remaining
	Shares			Exercise		Contractual
Options	(in thousands)			Price		Life (Years)
Outstanding at January 1, 2013		6,345		$	0.001
Granted		17,076			0.264
Exercised		(5,339	)		0.001
Forfeited or expired		(96	)		0.001

Outstanding at September 30, 2013		17,986			0.251		8.90

Vested at September 30, 2013 and expected to vest thereafter		5,641

Exercisable at September 30, 2013		6

Share option assumptions


Granted to Employees		2013
Average risk-free interest rate		2.10%~2.87%
Exercise multiple		2~3
Expected forfeiture rate (Post-vesting)		1.3%~6.0%
Weighted average expected option life		10
Volatility rate		47.00%~49.00%
Dividend yield		0%
Fair value		0.67

Management Share Option Arrangement [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share option activity


						Weighted
	Number			Weighted		Average
	Of			Average		Remaining
	Shares			Exercise		Contractual
Options	(in thousands)			Price		Life (Years)
Outstanding at January 1, 2013		2,178		$	0.625
Granted		4,638			0.625
Exercised		(2,936	)		0.625
Forfeited or expired		0

Outstanding at September 30, 2013		3,880			0.625		8.74

Vested at September 30, 2013 and expected to vest thereafter		1,475

Exercisable at September 30, 2013		0

Share option assumptions


Granted to Employees		2013
Average risk-free interest rate		2.10%~2.87%
Exercise multiple		2~3
Expected forfeiture rate (Post-vesting)		0%-8%
Weighted average expected option life		10
Volatility rate		47.00%-48.00%
Dividend yield		0%
Fair value		0.27-0.38

Business Combination (Tables)

9 Months Ended

Sep. 30, 2013

Business Combination [Abstract]

Allocation of consideration of assets acquired and liabilities assumed based on fair value


	As of September 16, 2013
Cash	$	3,249
Receivables		7,967
Fixed assets acquired		21,964
Goodwill		2,405
Identifiable intangible assets acquired		5,686
Liabilities		(13,653	)

Total	$	27,618

Noncontrolling Interest (Tables)

9 Months Ended

Sep. 30, 2013

Noncontrolling Interest [Abstract]

Noncontrolling interest in consolidated balance sheets


	As of
	September 30, 2013 (in thousands)		December 31, 2012 (in thousands)
Changyou	$	279,065	$	203,995
Sogou		200,314		24,645
Others		2,446		2,354

Total	$	481,825	$	230,994

Noncontrolling interest in consolidated statements of comprehensive income


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Changyou	$	23,596		$	23,410		$	73,486		$	65,425
Sogou		(1,143	)		(2,232	)		(3,109	)		(7,780	)
Others		402			(32	)		49			(27	)

Total	$	22,855		$	21,146		$	70,426		$	57,618

Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2013

Net Income per Share [Abstract]

Calculation of basic and diluted net income per share


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Net income /(loss) attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou series A preferred shareholders)	$	(64,189	)	$	25,881		$	(18,132	)	$	47,552

Effect of dilutive securities:
Incremental dilution from Changyou		(297	)		(510	)		(723	)		(1,945	)
Incremental dilution from Sogou		(535	)		(1,356	)		(1,673	)		(4,813	)

Net income /(loss) attributable to Sohu.com Inc., diluted	$	(65,021	)	$	24,015		$	(20,528	)	$	40,794

Denominator:
Weighted average basic common shares outstanding		38,288			38,022			38,239			38,036
Effect of dilutive securities:
Share options and restricted share units		234			322			242			356

Weighted average diluted common shares outstanding		38,522			38,344			38,481			38,392

Basic net income /(loss) per share attributable to Sohu.com Inc.	$	(1.68	)	$	0.68		$	(0.47	)	$	1.25

Diluted net income /(loss) per share attributable to Sohu.com Inc.	$	(1.69	)	$	0.63		$	(0.53	)	$	1.06

The Company and Basis of Presentation (Nature of Operations) (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	0 Months Ended			3 Months Ended		3 Months Ended		3 Months Ended
	Sep. 30, 2013 Sogou [Member] Series A Preferred Shares [Member]	Sep. 16, 2013 Tencent [Member] Sogou [Member]	Sep. 16, 2013 Sohu Search [Member] Sogou [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 Sohu [Member] Sogou [Member]	Sep. 30, 2013 Sohu [Member] Sogou [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 Sohu [Member] Changyou [Member]	Sep. 30, 2013 Photon [Member] Sogou [Member] Series A Preferred Shares [Member]	Sep. 16, 2013 Photon [Member] Sogou [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 China Web [Member] Sogou [Member] Series A Preferred Shares [Member]	Sep. 16, 2013 China Web [Member] Sogou [Member] Series A Preferred Shares [Member]
Restructuring Cost and Reserve [Line Items]
Cash proceeds from Tencent invested in Sogou		$ 448
Repurchase Option Agreement of Series A Preferred Shares, shares			24,000,000		24,000,000		6,400,000	6,400,000
Repurchase Option Agreement of Series A Preferred Shares, aggregate purchase price			78.8					21.0
Repurchase /Put Option Agreement of Series A Preferred Shares, shares										14,400,000
Repurchase /Put Option Agreement of Series A Preferred Shares, aggregate purchase price										47.3
Sogou special dividend paid to Series A Preferred Shareholders	$ 301				$ 161		$ 43		$ 97
Voting power held by parent pursuant to Shareholders Agreement				53.60%
Percentage of shares held by Sohu						68.00%
Voting power held by Sohu						83.00%

The Company and Basis of Presentation (Basis of Presentation) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Sep. 30, 2012

Scenario, Previously Reported [Member]

Dec. 31, 2012

Scenario, Previously Reported [Member]

Sep. 30, 2012

Effect of correction of accounting error on financial statement line item and per-share amounts affected for prior period presented [Member]

Restatement Adjustment [Member]

Dec. 31, 2012

Effect of correction of accounting error on financial statement line item and per-share amounts affected for prior period presented [Member]

Restatement Adjustment [Member]

Jun. 29, 2012

Alibaba Investment Limited [Member]

Sogou [Member]

Series A Preferred Shares [Member]

Basis of Presentation [Line Items]

Purchase of Series A Preferred Shares from Alibaba, shares

24.0

Purchase of Series A Preferred Shares from Alibaba, cash consideration

$ 25,800,000

Deemed dividend

14,200,000

Net income attributable to Sohu.com Inc.

(64,189,000)

25,881,000

(18,132,000)

47,552,000

^[1]

61,800,000

(14,200,000)

Basic net income /(loss) per share attributable to Sohu.com Inc. (in dollars per share)

$ (1.68)

$ 0.68

$ (0.47)

$ 1.25

^[1]

$ 1.63

$ (0.38)

Diluted net income /(loss) per share attributable to Sohu.com Inc. (in dollars per share)

$ (1.69)

$ 0.63

$ (0.53)

$ 1.06

^[1]

$ 1.44

$ (0.38)

Additional paid-in capital

594,812,000

378,311,000

^[1]

364,100,000

14,200,000

Retained earnings

749,748,000

770,184,000

^[1]

784,400,000

(14,200,000)

Amount of revenues reclassified from online game business to IVAS in the others business

800,000

3,500,000

Amount of costs reclassified from online game business to IVAS in the others business

$ 300,000

$ 1,300,000

[1]

Revised

Segment Information (Segment Operating Information by Segment) (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

$ 368,323

$ 285,378

$ 1,014,823

$ 767,709

(125,362)

(96,517)

(342,368)

(275,689)

242,961

188,861

672,455

492,020

(128)

^[1]

(232)

^[1]

(296)

^[1]

(426)

^[1]

242,833

188,629

672,159

491,594

(69,639)

(45,678)

(184,061)

(124,908)

(90,369)

(57,668)

(220,397)

(144,290)

Impairment of intangible assets via acquisitions of businesses

(27,566)

(17,953)

(74,901)

(50,824)

(2,906)

(3,070)

^[1]

(3,611)

^[1]

(5,227)

^[1]

(9,776)

^[1]

(190,644)

(124,910)

(484,586)

(332,704)

52,189

63,719

187,573

158,890

1,533

(111)

5,596

3,320

7,595

5,974

19,794

19,692

(1,305)

667

(5,274)

60,012

70,249

207,689

181,971

(18,923)

(18,727)

(55,192)

(55,881)

41,089

51,522

152,497

126,090

Brand Advertising [Member]

110,008

^[2]

68,217

^[2]

277,974

^[2]

188,117

^[2]

(60,512)

(35,620)

(151,105)

(120,915)

49,496

32,597

126,869

67,202

Mobile [Member]

14,524

^[2]

14,312

^[2]

43,610

^[2]

43,261

^[2]

(8,108)

(9,474)

(26,342)

(28,535)

6,416

4,838

17,268

14,726

Others [Member]

7,036

^[2]

2,935

^[2]

14,190

^[2]

6,210

^[2]

(71)

(841)

(2,180)

(1,770)

6,965

2,094

12,010

4,440

Brand Advertising, Mobile and Others [Member]

131,568

^[2]

85,464

^[2]

335,774

^[2]

237,588

^[2]

(68,691)

(45,935)

(179,627)

(151,220)

62,877

39,529

156,147

86,368

(59)

^[1]

(133)

^[1]

(197)

^[1]

(117)

^[1]

62,818

39,396

155,950

86,251

(21,758)

(16,916)

(62,566)

(46,400)

(54,748)

(36,744)

(142,581)

(95,522)

Impairment of intangible assets via acquisitions of businesses

(11,742)

(8,842)

(29,192)

(23,543)

(542)

^[1]

(1,030)

^[1]

(1,701)

^[1]

(3,538)

^[1]

(88,790)

(63,532)

(236,040)

(169,003)

(25,972)

(24,136)

(80,090)

(82,752)

162,372

^[3]

137,940

^[4]

164,533

^[3]

140,495

^[4]

1,637

2,297

5,275

8,812

(170)

(752)

188

137,867

116,189

88,966

66,743

(5,328)

(1,373)

(11,079)

(6,187)

132,539

114,816

77,887

60,556

Sogou [Member]

56,940

^[2]

37,295

^[2]

146,144

^[2]

90,470

^[2]

(26,687)

(19,715)

(71,972)

(48,992)

30,253

17,580

74,172

41,478

(24)

^[1]

(21)

^[1]

(29)

^[1]

(64)

^[1]

30,229

17,559

74,143

41,414

(17,700)

(11,034)

(45,131)

(27,911)

(10,673)

(7,693)

(28,047)

(18,277)

Impairment of intangible assets via acquisitions of businesses

(2,952)

(1,524)

(7,020)

(4,235)

(5,389)

^[1]

(1,931)

^[1]

(5,800)

^[1]

(3,519)

^[1]

(36,714)

(22,182)

(85,998)

(53,942)

(6,485)

(4,623)

(11,855)

(12,528)

(27)

^[3]

^[4]

^[3]

^[4]

231

837

261

196

(6,232)

(4,458)

(10,763)

(12,149)

(6)

(6,232)

(4,458)

(10,769)

(12,149)

Changyou [Member]

183,068

^[2]

165,782

^[2]

543,024

^[2]

449,888

^[2]

(30,093)

(30,908)

(91,098)

(75,700)

152,975

134,874

451,926

374,188

(45)

^[1]

(78)

^[1]

(70)

^[1]

(245)

^[1]

152,930

134,796

451,856

373,943

(30,181)

(17,728)

(76,364)

(50,597)

(28,092)

(16,353)

(59,559)

(40,505)

Impairment of intangible assets via acquisitions of businesses

(12,872)

(7,587)

(38,689)

(23,046)

(2,906)

(286)

^[1]

(715)

^[1]

(875)

^[1]

(2,784)

^[1]

(71,431)

(42,383)

(175,487)

(119,838)

81,499

92,413

276,369

254,105

381

^[3]

(1,787)

^[4]

2,197

^[3]

(910)

^[4]

5,727

3,604

13,682

10,619

(1,184)

548

(4,718)

(177)

86,423

94,778

287,530

263,637

(13,595)

(17,354)

(44,107)

(49,694)

72,828

77,424

243,423

213,943

Eliminations [Member]

(3,253)

^[2]

(3,163)

^[2]

(10,119)

^[2]

(10,237)

^[2]

109

329

223

(3,144)

(3,122)

(9,790)

(10,014)

^[1]

(3,144)

(3,122)

(9,790)

(10,014)

3,144

3,122

9,790

10,014

Impairment of intangible assets via acquisitions of businesses

3,147

^[1]

3,149

^[1]

6,291

3,187

12,939

10,079

3,147

3,149

(161,193)

^[3]

(136,325)

^[4]

(161,193)

^[3]

(136,325)

^[4]

(158,046)

(136,260)

(158,044)

(136,260)

$ (158,046)

$ (136,260)

$ (158,044)

$ (136,260)

[1]	"SBC" stands for share-based compensation expense.
[2]	The elimination for segment revenues mainly consists of marketing services provided by the brand advertising segment (banner advertisements etc.) to the Changyou segment.
[3]	The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares.
[4]	The elimination for other income is primarily for the portion paid to Sohu of a special one-time cash dividend paid by Changyou to its shareholders.

Segment Information (Segment Assets Information by Segment) (Details) (USD $)
In Thousands, unless otherwise specified

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Dec. 31, 2011

$ 1,240,842

$ 833,535

$ 773,469

$ 732,607

153,284

98,398

546,228

178,951

2,788,347

2,082,637

Brand Advertising, Mobile and Others [Member]

502,934

433,777

110,745

68,593

249,956

70,262

1,213,104

^[1]

1,038,741

^[1]

Sogou [Member]

236,640

33,119

12,880

6,481

61,965

43,861

333,464

^[1]

87,537

^[1]

Changyou [Member]

501,268

366,639

29,963

23,364

234,307

64,828

1,400,763

^[1]

1,114,513

^[1]

Eliminations [Member]

(304)

(40)

$ (158,984)

^[1]

$ (158,154)

^[1]

[1]	The elimination for segment assets mainly consists of elimination of long-term investments in subsidiary and associate companies.

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References+ Details

Share-Based Compensation Expense (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	0 Months Ended		3 Months Ended		9 Months Ended		0 Months Ended				3 Months Ended	9 Months Ended	0 Months Ended				3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Sohu Video [Member]	Sep. 30, 2012 Sohu Video [Member]	Sep. 30, 2013 Sohu Video [Member]	Sep. 30, 2012 Sohu Video [Member]	Sep. 30, 2013 Sohu Video [Member] Video 2011 Share Incentive Plan [Member]	Jan. 04, 2012 Sohu Video [Member] Video 2011 Share Incentive Plan [Member] Ordinary Shares [Member]	Sep. 30, 2013 Sohu Video [Member] Video 2011 Share Incentive Plan [Member] Stock Options [Member]	Sep. 30, 2013 7Road [Member]	Sep. 30, 2012 7Road [Member]	Sep. 30, 2013 7Road [Member]	Sep. 30, 2012 7Road [Member]	Jun. 28, 2013 7Road [Member] 7Road 2012 Share Incentive Plan [Member] employee	Nov. 02, 2012 7Road [Member] 7Road 2012 Share Incentive Plan [Member] Ordinary Shares [Member]	Jul. 10, 2012 7Road [Member] 7Road 2012 Share Incentive Plan [Member] Ordinary Shares [Member]	Jun. 28, 2013 7Road [Member] 7Road 2012 Share Incentive Plan [Member] Restricted Share Units [Member]	Sep. 30, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member]	Sep. 30, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member]	Jun. 28, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] Restricted Share Units [Member]	Jun. 28, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] Restricted Share Units [Member] First Anniversary [Member]	Jun. 28, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] Restricted Share Units [Member] Second Anniversary [Member]	Jun. 28, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] Restricted Share Units [Member] Third Anniversary [Member]	Sep. 30, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme II [Member] employee	Sep. 30, 2013 7Road [Member] Exchange Program of 7Road 2012 Share Incentive Plan, Scheme II [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance										25,000,000							15,100,000	5,100,000
Percentage of outstanding shares on a fully-diluted basis										10.00%							13.70%	5.10%
Number of options issued											15,352,200
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000	$ 0	$ 0	$ 0	$ 0	$ 0			$ 0	$ 0	$ 0	$ 0
Employees holding the restricted share units																42
Number of accumulated restricted share units granted under the plan																			2,223,750
Cash payment price for each restricted share																						$ 2.90
Ratio of restricted share unit to be vested and payable																							40.00%	30.00%	30.00%
Incremental compensation expense																					5,700,000
Cash-based compensation expense																				400,000	2,900,000					300,000	300,000
Cash bonuses paid under the plan																				1,600,000
Employees newly involved under the plan																										48
Capitalized share-based compensation expense	$ 0	$ 0	$ 0	$ 0

Share-Based Compensation Expense (Share-based Compensation Expense Recognized in Costs and /or Expenses) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Cost of revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	128,000	232,000	296,000	426,000
Product development expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	912,000	1,316,000	1,670,000	4,019,000
Sales and marketing expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	359,000	582,000	732,000	1,613,000
General and administrative expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,799,000	$ 1,713,000	$ 2,825,000	$ 4,144,000

Share-Based Compensation Expense (Share-based Compensation Expense Recognized for Share-based Awards of Sohu, Changyou, Sogou, Sohu Video and 7Road) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Sohu [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	730,000	1,440,000	2,313,000	4,621,000
Changyou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	312,000	750,000	884,000	2,769,000
Sogou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,156,000	1,653,000	2,326,000	2,812,000
Sohu Video [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	0	0	0	0
7Road [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Put option recognized as other short-term liability	$ 6,200
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	72,888	291,945
Restricted time deposits	374,987	246,839
Short-term investments	24,369	54,901
Investments in debt securities	81,327	79,548
Total Assets	553,571	673,233
Put option recognized as other short-term liability	6,192
Fair Value, Measurements, Recurring [Member] \| 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
Restricted time deposits	0	0
Short-term investments	0	0
Investments in debt securities	0	0
Total Assets	0	0
Put option recognized as other short-term liability	0
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	72,888	291,945
Restricted time deposits	374,987	246,839
Short-term investments	24,369	54,901
Investments in debt securities	0	0
Total Assets	472,244	593,685
Put option recognized as other short-term liability	0
Fair Value, Measurements, Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Restricted time deposits	0	0
Short-term investments	0	0
Investments in debt securities	81,327	79,548
Total Assets	81,327	79,548
Put option recognized as other short-term liability	$ 6,192

Fair Value Measurements (Reconciliation of Fair Value Measurements of Assets) (Details) (Debt Securities [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 79,548
Transactions:
Initial fair value of recognition	0
Fair value change	0
Currency translation adjustment	1,779
Ending balance	$ 81,327

Fair Value Measurements (Reconciliation of Fair Value Measurements of Liabilities) (Details) (Put Option [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Put Option [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 0
Transactions:
Initial fair value of recognition	6,048
Fair value change	144
Currency translation adjustment	0
Ending balance	$ 6,192

Fair Value Measurements (Narrative) (Details)	3 Months Ended	9 Months Ended			3 Months Ended	9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
Fair Value Measurements (Narrative) (Details)	Sep. 30, 2013 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Feb. 28, 2013 USD ($)	Sep. 30, 2013 Changyou [Member] USD ($)	Sep. 30, 2013 Changyou [Member] USD ($)	Sep. 30, 2013 Cash equivalents [Member]	Sep. 30, 2013 Short-term investments [Member] USD ($)	Sep. 30, 2012 Short-term investments [Member] USD ($)	Sep. 30, 2013 Short-term investments [Member] USD ($)	Sep. 30, 2012 Short-term investments [Member] USD ($)	Sep. 30, 2013 Debt Securities [Member] USD ($)	Sep. 30, 2012 Debt Securities [Member] USD ($)	Sep. 30, 2013 Debt Securities [Member] USD ($)	Sep. 30, 2012 Debt Securities [Member] USD ($)	Sep. 30, 2013 Debt Securities [Member] CNY
Cash equivalents [Abstract]
Time deposits placed with banks, maximum of original maturity							3 months
Restricted time deposits [Abstract]
Total amount of bank loans					$ 354,000,000	$ 354,000,000
Loans with floating interest rate					252,000,000	252,000,000
Loans with fixed interest rate					102,000,000	102,000,000
Interest income from restricted time deposits securing loans					2,900,000	8,800,000
Interest expense on bank loans					2,300,000	6,400,000
Restricted time deposits, collateral for credit facilities				9,000,000
Short-term investments [Abstract]
Investments in financial instruments								24,400,000		24,400,000
Change in fair value								800,000	400,000	2,300,000	1,000,000	0	0	0	0
Investments in debt securities [Abstract]
Convertible debt security, principal amount												74,600,000		74,600,000		500,000,000
Convertible debt security, frequency of periodic payment														Quarterly
Convertible debt security, interest rate for first extension period														3.80%
Convertible debt security, initial maturity period														12 months
Convertible debt security, additional maturity period														6 months
Convertible debt security, interest rate for second extension period														6.80%
Date to receive option to convert debt securities to equity interest														Mar. 31, 2014
Interest income generated from debt security		4,143,000	4,098,000									1,400,000	1,370,000	4,140,000	4,100,000
Change in fair value								800,000	400,000	2,300,000	1,000,000	0	0	0	0
Repurchase Options and Repurchase /Put Option for Sogou Series A Preferred Shares [Abstract]
Put option recognized as other short-term liability	6,200,000	6,200,000
Fair value change of put option	144,000
Repurchase options recognized as additional paid-in capital	$ 3,700,000	$ 3,700,000

Fixed Assets (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	May 31, 2013
Sohu [Member] \| Office Building [Member]
Property, Plant and Equipment [Line Items]
Original cost recognized as fixed assets		$ 162
Useful life	41 years
Changyou [Member] \| Construction-in-progress [Member]
Property, Plant and Equipment [Line Items]
Original cost recognized as fixed assets	$ 164

Goodwill (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Goodwill [Line Items]
Goodwill, beginning balance	$ 200,204
Accumulated impairment losses, beginning balance	(40,989)
Goodwill, net, beginning balance	159,215
Transactions in 2013
Acquisition of Soso search-related businesses from Tencent	2,405
Foreign currency translation adjustment	2,841
Goodwill, net, ending balance	164,461
Goodwill, ending balance	205,450
Accumulated impairment losses, ending balance	(40,989)
Goodwill, net, ending balance	164,461
Brand Advertising [Member]
Goodwill [Line Items]
Goodwill, beginning balance	42,093
Accumulated impairment losses, beginning balance	(19,846)
Goodwill, net, beginning balance	22,247
Transactions in 2013
Acquisition of Soso search-related businesses from Tencent	0
Foreign currency translation adjustment	6
Goodwill, net, ending balance	22,253
Goodwill, ending balance	42,099
Accumulated impairment losses, ending balance	(19,846)
Goodwill, net, ending balance	22,253
Mobile [Member]
Goodwill [Line Items]
Goodwill, beginning balance	15,942
Accumulated impairment losses, beginning balance	(15,942)
Goodwill, net, beginning balance	0
Transactions in 2013
Acquisition of Soso search-related businesses from Tencent	0
Foreign currency translation adjustment	0
Goodwill, net, ending balance	0
Goodwill, ending balance	15,942
Accumulated impairment losses, ending balance	(15,942)
Goodwill, net, ending balance	0
Sogou [Member]
Goodwill [Line Items]
Goodwill, beginning balance	2,047
Accumulated impairment losses, beginning balance	0
Goodwill, net, beginning balance	2,047
Transactions in 2013
Acquisition of Soso search-related businesses from Tencent	2,405
Foreign currency translation adjustment	48
Goodwill, net, ending balance	4,500
Goodwill, ending balance	4,500
Accumulated impairment losses, ending balance	0
Goodwill, net, ending balance	4,500
Changyou [Member]
Goodwill [Line Items]
Goodwill, beginning balance	140,122
Accumulated impairment losses, beginning balance	(5,201)
Goodwill, net, beginning balance	134,921
Transactions in 2013
Acquisition of Soso search-related businesses from Tencent	0
Foreign currency translation adjustment	2,787
Goodwill, net, ending balance	137,708
Goodwill, ending balance	142,909
Accumulated impairment losses, ending balance	(5,201)
Goodwill, net, ending balance	$ 137,708

Taxation (PRC Corporate Income Tax) (Details)	9 Months Ended
Taxation (PRC Corporate Income Tax) (Details)	Sep. 30, 2013
Income Tax and Tax Rate [Line Items]
Unified income tax rate	25.00%
High and New Technology Enterprises [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Sohu Era [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Sohu Media [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Sogou Technology [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
AmazGame [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Gamease [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Sohu Internet [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Sogou Information [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	15.00%
Preferential income tax rate period	3 years
Software Enterprise [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	12.50%
Preferential income tax rate period	3 years
Income tax exemption period	2 years
Tax rate reduction rate	50.00%
Shenzhen 7Road [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	12.50%
Preferential income tax rate period	3 years
Income tax exemption period	2 years
Tax rate reduction rate	50.00%
Gamespace [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	12.50%
Preferential income tax rate period	3 years
Income tax exemption period	2 years
Tax rate reduction rate	50.00%
ICE Information [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	12.50%
Preferential income tax rate period	3 years
Income tax exemption period	2 years
Tax rate reduction rate	50.00%
Shanghai ICE [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	12.50%
Preferential income tax rate period	3 years
Income tax exemption period	2 years
Tax rate reduction rate	50.00%
7Road Technology [Member]
Income Tax and Tax Rate [Line Items]
Preferential income tax rate	12.50%
Preferential income tax rate period	3 years
Income tax exemption period	2 years
Tax rate reduction rate	50.00%

Taxation (PRC Withholding Tax on Dividends) (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Withholding tax on dividends [Line Items]
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies	10.00%
Changyou [Member]
Withholding tax on dividends [Line Items]
Deferred tax liabilities related to withholding tax	$ 16.8
HONG KONG
Withholding tax on dividends [Line Items]
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies	10.00%
Preferential withholding tax rate on dividends, foreign invested enterprises	5.00%

Taxation (Transition from PRC Business Tax to PRC Value Added Tax) (Details)	9 Months Ended
	Sep. 30, 2013
Minimum [Member]
Business Tax and Value Added Tax [Line Items]
Business Tax rate	3.00%
Maximum [Member]
Business Tax and Value Added Tax [Line Items]
Business Tax rate	5.00%
7Road [Member]
Business Tax and Value Added Tax [Line Items]
VAT rate	17.00%
VAT rate, immediate tax refund rate	14.00%
Net VAT rate	3.00%
Brand Advertising and Search Business [Member]
Business Tax and Value Added Tax [Line Items]
VAT rate in Pilot Program	6.00%

Taxation (U.S. Corporate Income Tax) (Details) (USD $)		9 Months Ended
Taxation (U.S. Corporate Income Tax) (Details) (USD $)	Dec. 31, 2012	Sep. 30, 2013 Minimum [Member]	Sep. 30, 2013 Maximum [Member]
U.S. Corporate Income Tax [Line Items]
U.S. corporate income tax rate		34.00%	35.00%
U.S. NOLs	$ 0

Commitments and Contingencies (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
Bandwidth purchases [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Amount of commitments	$ 44
Operating leases [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Amount of commitments	28
Video content purchases [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Amount of commitments	22
Other content and service purchases [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Amount of commitments	$ 16

VIEs (VIEs Consolidated within Sohu Group, Basic Information, Narrative) (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended				9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended		9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended		9 Months Ended			9 Months Ended			9 Months Ended		0 Months Ended		12 Months Ended		9 Months Ended			9 Months Ended		9 Months Ended
	Jun. 05, 2013 Changyou [Member] 7Road [Member]	Sep. 30, 2013 Changyou [Member] 7Road [Member]	Sep. 30, 2013 Consolidated VIEs [Member]	Sep. 30, 2013 High Century [Member]	Sep. 30, 2013 High Century [Member] Dr. Charles Zhang [Member]	Sep. 30, 2013 High Century [Member] Wei Li [Member]	Sep. 30, 2013 Sohu Entertainment [Member]	Sep. 30, 2013 Sohu Entertainment [Member] Xin Wang [Member]	Sep. 30, 2013 Sohu Entertainment [Member] Ye Deng [Member]	Sep. 30, 2013 Sohu Internet [Member]	Sep. 30, 2013 Sohu Internet [Member] High Century [Member]	Sep. 30, 2013 Sohu Internet [Member] Sohu Entertainment [Member]	Sep. 30, 2013 Donglin [Member]	Sep. 30, 2013 Donglin [Member] High Century [Member]	Sep. 30, 2013 Donglin [Member] Sohu Internet [Member]	Sep. 30, 2013 Pilot New Era [Member]	Sep. 30, 2013 Pilot New Era [Member] High Century [Member]	Sep. 30, 2013 Pilot New Era [Member] Sohu Internet [Member]	Sep. 30, 2013 Focus Yiju [Member]	Sep. 30, 2013 Focus Yiju [Member] High Century [Member]	Sep. 30, 2013 Zhi Hui You [Member]	Sep. 30, 2013 Zhi Hui You [Member] Jing Zhou [Member]	Sep. 30, 2013 Zhi Hui You [Member] A third party entity [Member]	Sep. 30, 2013 Tianjin Jinhu [Member]	Sep. 30, 2013 Tianjin Jinhu [Member] Ye Deng [Member]	Sep. 30, 2013 Tianjin Jinhu [Member] Chun Liu [Member]	Sep. 30, 2013 Sogou Information [Member]	Sep. 30, 2013 Sogou Information [Member] Xiaochuan Wang [Member]	Sep. 30, 2013 Sogou Information [Member] Xianxian Hao [Member]	Sep. 30, 2013 Shi Ji Guang Su [Member]	Sep. 30, 2013 Shi Ji Guang Su [Member] Sogou Information [Member]	Sep. 30, 2013 Gamease [Member]	Sep. 30, 2013 Gamease [Member] Tao Wang [Member]	Sep. 30, 2013 Gamease [Member] Dewen Chen [Member]	Sep. 30, 2013 Shanghai ICE [Member]	Sep. 30, 2013 Shanghai ICE [Member] Runa Pi [Member]	Sep. 30, 2013 Shanghai ICE [Member] Rong Qi [Member]	Sep. 30, 2013 Guanyou Gamespace [Member]	Sep. 30, 2013 Guanyou Gamespace [Member] Tao Wang [Member]	Sep. 30, 2013 Guanyou Gamespace [Member] Dewen Chen [Member]	Jun. 05, 2013 Shenzhen 7Road [Member] Gamease [Member]	May 01, 2013 Shenzhen 7Road [Member] Gamease [Member]	Dec. 31, 2011 Shenzhen 7Road [Member] Gamease [Member]	Sep. 30, 2013 GoodFeel [Member]	Sep. 30, 2013 GoodFeel [Member] Jing Zhou [Member]	Sep. 30, 2013 GoodFeel [Member] James Deng [Member]	Sep. 30, 2013 21 East Beijing [Member]	Sep. 30, 2013 21 East Beijing [Member] High Century [Member]	Sep. 30, 2013 Yi He Jia Xun [Member]	Sep. 30, 2013 Yi He Jia Xun [Member] Gang Fang [Member]	Sep. 30, 2013 Yi He Jia Xun [Member] Yanfeng Lv [Member]
Variable Interest Entity [Line Items]
Aggregate amount of loans due from related parties			$ 18.6
Registered capital and PRC statutory reserves			34.8
Registered capital				$ 4.6			$ 1.2			$ 1.6			$ 1.5			$ 0.7			$ 1.6		$ 1.6			$ 0.5			$ 2.5			$ 3.2		$ 1.3			$ 1.2			$ 1.5						$ 1.2			$ 1.6		$ 2.1
Ownership percentage in VIEs	100.00%				80.00%	20.00%		80.00%	20.00%		75.00%	25.00%		50.00%	50.00%		50.00%	50.00%		100.00%		50.00%	50.00%		50.00%	50.00%		50.00%	50.00%		100.00%		60.00%	40.00%		50.00%	50.00%		60.00%	40.00%	100.00%				41.90%	58.10%		100.00%		50.00%	50.00%
Percentage of outstanding share capital																																										31.742%	68.258%
Ownership percentage by Changyou		71.926%

VIEs (VIEs Consolidated within Sohu Group, Financial Information of Consolidated VIEs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
ASSETS:
Cash and cash equivalents	$ 1,240,842	$ 773,469	$ 1,240,842	$ 773,469	$ 833,535	$ 732,607
Short-term investments	24,369		24,369		54,901
Accounts receivable, net	153,284		153,284		98,398
Total current assets	1,910,159		1,910,159		1,238,283
Goodwill	164,461		164,461		159,215
LIABILITIES:
Accounts payable	96,171		96,171		67,934
Receipts in advance and deferred revenue	112,805		112,805		89,687
Total current liabilities	985,325		985,325		558,575
Net revenue	368,323	285,378	1,014,823	767,709
Net income	41,089	51,522	152,497	126,090
Cash flows
Net cash provided by /(used in) operating activities			275,386	279,781
Net cash (used in) /provided by investing activities			(309,015)	(346,743)
Net cash used in financing activities			426,107	110,433
Consolidated VIEs [Member]
ASSETS:
Cash and cash equivalents	46,631		46,631		62,638
Short-term investments	10,337		10,337		54,106
Accounts receivable, net	97,941		97,941		80,671
Other current assets	43,806		43,806		30,322
Intercompany receivables due from subsidiaries	260,930		260,930		109,728
Total current assets	459,645		459,645		337,465
Goodwill	128,949		128,949		126,516
Prepaid and other non-current assets	54,242		54,242		57,793
Total assets	642,836		642,836		521,774
LIABILITIES:
Accounts payable	11,067		11,067		6,958
Accrued and other short-term liabilities	201,127		201,127		105,322
Receipts in advance and deferred revenue	64,765		64,765		54,150
Intercompany payables due to subsidiaries	30,962		30,962		36,446
Total current liabilities	307,921		307,921		202,876
Other long-term liabilities	4,604		4,604		3,846
Total liabilities	312,525		312,525		206,722
Net revenue	259,362	233,802	759,948	639,947
Net income	5,425	38,439	198,853	92,100
Sohu's VIEs [Member]
Cash flows
Net cash provided by /(used in) operating activities			6,312	(16,930)
Net cash (used in) /provided by investing activities			(574)	143
Net cash used in financing activities			0	(474)
Changyou's VIEs [Member]
Cash flows
Net cash provided by /(used in) operating activities			29,225	41,843
Net cash (used in) /provided by investing activities			(51,434)	(31,558)
Net cash used in financing activities			$ 0	$ (13,105)

VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect, Narrative) (Details)	9 Months Ended
	Sep. 30, 2013
Shareholders of Sogou Information [Member] \| Sogou Tech [Member]
Variable Interest Entity [Line Items]
Power of attorney term	10 years
Shareholders of Gamease [Member] \| AmazGame [Member]
Variable Interest Entity [Line Items]
Power of attorney term	10 years
Business operation agreement term	10 years
Shareholders of Guanyou Gamespace [Member] \| Gamespace [Member]
Variable Interest Entity [Line Items]
Power of attorney term	10 years
Business operation agreement term	10 years
Sogou Information [Member] \| Sogou Tech [Member]
Variable Interest Entity [Line Items]
Business cooperation agreement term	10 years
Exclusive technology consulting and service agreement term	10 years
Sogou Information [Member] \| Shareholders of Sogou Information [Member] \| Sogou Tech [Member]
Variable Interest Entity [Line Items]
Business operation agreement term	10 years
Shenzhen 7Road [Member] \| Gamease [Member] \| 7Road Technology [Member]
Variable Interest Entity [Line Items]
Business operation agreement term	10 years
Equity interest purchase right agreements term	10 years
Sohu Internet [Member] \| Sohu Era [Member]
Variable Interest Entity [Line Items]
Business cooperation agreement term	1 year

VIEs (VIE Not Consolidated within Sohu Group, Narrative) (Details) (VIE Not Consolidated within the Sohu Group [Member], USD $) In Millions, unless otherwise specified	1 Months Ended
	Dec. 31, 2012
VIE Not Consolidated within the Sohu Group [Member]
Variable Interest Entity [Line Items]
Purchase price	$ 1.6
Percentage of acquired ordinary shares	25.00%

Sohu.com Inc. Shareholders' Equity (Treasury Stock, Narrative) (Details) (USD $) In Millions, except Share data, unless otherwise specified				3 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Changyou's ADS Repurchase Program [Member] Changyou [Member] Ordinary Shares [Member]	Sep. 30, 2013 Changyou's ADS Repurchase Program [Member] Changyou [Member] ADS [Member]
Equity, Class of Treasury Stock [Line Items]
Authorized amount				$ 100
Period in force				2 years
Repurchased shares	5,889,000	5,889,000	611,600	305,800
Aggregate cost of repurchased shares				$ 9.1

Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Sohu 2000 Stock Incentive Plan [Member]	Sep. 30, 2012 Sohu 2000 Stock Incentive Plan [Member]	Sep. 30, 2013 Sohu 2000 Stock Incentive Plan [Member]	Sep. 30, 2012 Sohu 2000 Stock Incentive Plan [Member]	Sep. 30, 2013 Sohu 2000 Stock Incentive Plan [Member] Common Stock [Member]	Jan. 24, 2010 Sohu 2000 Stock Incentive Plan [Member] Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance									9,500,000
Award vesting period							4 years
Maximum term of issued stock right from grant date							10 years
Plan expiration date							Jan. 24, 2010
Accumulated number of shares issued										9,128,724
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000	$ 500,000	$ 1,200,000	$ 1,700,000	$ 3,900,000

Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Share Options Activity) (Details) (USD $)

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 3,198,000

$ 3,843,000

$ 5,523,000

$ 10,202,000

Sohu 2000 Stock Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

500,000

1,200,000

1,700,000

3,900,000

Sohu 2000 Stock Incentive Plan [Member] | Share Options [Member]

Number Of Shares, Outstanding, Beginning balance (in shares)

242,000

Number Of Shares, Exercised (in shares)

(63,000)

Number Of Shares, Forfeited or expired (in shares)

(1,000)

Number Of Shares, Outstanding, Ending balance (in shares)

178,000

Number Of Shares, Vested, Ending balance (in shares)

178,000

Number Of Shares, Exercisable, Ending balance (in shares)

178,000

Weighted Average Exercise Price, Outstanding, Beginning balance (in dollars per share)

$ 19.36

Weighted Average Exercise Price, Exercised (in dollars per share)

$ 15.06

Weighted Average Exercise Price, Forfeited or expired (in dollars per share)

$ 9.07

Weighted Average Exercise Price, Outstanding, Ending balance (in dollars per share)

$ 20.91

Weighted Average Exercise Price, Vested, Ending balance (in dollars per share)

$ 20.91

Weighted Average Exercise Price, Exercisable, Ending balance (in dollars per share)

$ 20.91

Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance

1.91

Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance

1.43

Weighted Average Remaining Contractual Life (Years), Vested, Ending balance

1.43

Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance

1.43

Aggregate Intrinsic Value, Outstanding, Beginning balance

6,781,000

^[1]

Aggregate Intrinsic Value, Outstanding, Ending balance

10,336,000

^[1]

10,336,000

^[1]

Aggregate Intrinsic Value, Vested, Ending balance

10,336,000

^[1]

10,336,000

^[1]

Aggregate Intrinsic Value, Exercisable, Ending balance

10,336,000

^[1]

10,336,000

^[1]

Closing stock price

$ 78.83

Total intrinsic value of share options exercised

2,300,000

Number of options granted in period

Total cash received from the exercise of share options

$ 100,000

$ 101,000

$ 1,000,000

$ 240,000

[1]

The aggregate intrinsic value in the preceding table represents the difference between Sohu's closing stock price of $78.83 on September 30, 2013 and the exercise price of share options. The total intrinsic value of share options exercised for the nine months ended September 30, 2013 was $2.3 million.

Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Restricted Share Units Activity) (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Sohu 2000 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	500,000	1,200,000	1,700,000	3,900,000
Sohu 2000 Stock Incentive Plan [Member] \| Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Unvested, Beginning balance (in shares)			255
Number of Units, Granted (in shares)			0
Number of Units, Vested (in shares)			(127)
Number of Units, Forfeited (in shares)			(4)
Number of Units, Unvested, Ending balance (in shares)	124		124
Number of Units, Expected to vest thereafter (in shares)			93
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance (in dollars per share)			$ 61.27
Weighted-Average Grant-Date Fair Value, Vested (in dollars per share)			$ 61.27
Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share)			$ 61.27
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance (in dollars per share)	$ 61.27		$ 61.27
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter (in dollars per share)	$ 61.27		$ 61.27
Share-based compensation expense	500,000	1,200,000	1,700,000	3,900,000
Unrecognized compensation expenses	600,000		600,000
Unrecognized compensation expenses, weighted average period for recognition			3 months 16 days
Fair value of restricted share units vested	$ 0	$ 0	$ 6,200,000	$ 8,900,000

Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Narrative) (Details) (Sohu 2010 Stock Incentive Plan [Member])	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013 Common Stock [Member]	Jun. 02, 2010 Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance			1,500,000
Maximum term of issued stock right from grant date	10 years
Plan expiration date	Jul. 01, 2020
Shares available for grant		1,455,422

Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Restricted Share Units Activity) (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Sohu 2010 Stock Incentive Plan [Member] \| Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Unvested, Beginning balance (in shares)			5
Number of Units, Granted (in shares)			14
Number of Units, Vested (in shares)			(7)
Number of Units, Forfeited (in shares)			(2)
Number of Units, Unvested, Ending balance (in shares)	10		10
Number of Units, Expected to vest thereafter (in shares)			9
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance (in dollars per share)			$ 70.88
Weighted-Average Grant-Date Fair Value, Granted (in dollars per share)			$ 48.75
Weighted-Average Grant-Date Fair Value, Vested (in dollars per share)			$ 48.75
Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share)			$ 70.88
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance (in dollars per share)	$ 55.84		$ 55.84
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter (in dollars per share)	$ 54.41		$ 54.41
Share-based compensation expense	200,000	200,000	600,000	600,000
Unrecognized compensation expenses	300,000		300,000
Unrecognized compensation expenses, weighted average period for recognition			4 months 26 days
Fair value of restricted share units vested	$ 400,000	$ 250,000	$ 400,000	$ 250,000

Sohu.com Inc. Shareholders' Equity (Changyou's 2008 Share Incentive Plan, Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		1 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Changyou [Member]	Sep. 30, 2012 Changyou [Member]	Sep. 30, 2013 Changyou [Member]	Sep. 30, 2012 Changyou [Member]	Sep. 30, 2013 Changyou [Member] Changyou 2008 Share Incentive Plan [Member]	Sep. 30, 2012 Changyou [Member] Changyou 2008 Share Incentive Plan [Member]	Sep. 30, 2013 Changyou [Member] Changyou 2008 Share Incentive Plan [Member]	Sep. 30, 2012 Changyou [Member] Changyou 2008 Share Incentive Plan [Member]	Mar. 31, 2009 Changyou [Member] Changyou 2008 Share Incentive Plan [Member] Ordinary Shares [Member]	Sep. 30, 2013 Changyou [Member] Changyou 2008 Share Incentive Plan [Member] Ordinary Shares [Member]	Dec. 31, 2008 Changyou [Member] Changyou 2008 Share Incentive Plan [Member] Ordinary Shares [Member]	Sep. 30, 2013 Changyou [Member] Changyou 2008 Share Incentive Plan [Member] Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance															2,000,000
Shares issued after share split													20,000,000
Award vesting period											4 years
Maximum term of issued stock right from grant date											10 years
Number of accumulated shares granted														15,000,000		4,781,552
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000	$ 312,000	$ 750,000	$ 884,000	$ 2,769,000	$ 300,000	$ 800,000	$ 900,000	$ 2,800,000

Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted before Changyou's Initial Public Offering, Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Changyou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	312,000	750,000	884,000	2,769,000
Changyou [Member] \| Share-based Awards Granted before Changyou's Initial Public Offering [Member] \| Restricted Ordinary Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	0	0	0	72,000
Changyou [Member] \| Share-based Awards Granted before Changyou's Initial Public Offering [Member] \| Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 50,000	$ (300,000)	$ 200,000
Grant date fair value (per share)					$ 8.00

Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted before Changyou's Initial Public Offering, Restricted Share Units Activity) (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Changyou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	312,000	750,000	884,000	2,769,000
Changyou [Member] \| Share-based Awards Granted before Changyou's Initial Public Offering [Member] \| Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Unvested, Beginning balance (in shares)			81
Number of Units, Granted (in shares)			0
Number of Units, Vested (in shares)			(81)
Number of Units, Forfeited (in shares)			0
Number of Units, Unvested, Ending balance (in shares)	0		0
Number of Units, Expected to vest thereafter (in shares)			0
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance (in dollars per share)			$ 8.00
Weighted-Average Grant-Date Fair Value, Vested (in dollars per share)			$ 8.00
Share-based compensation expense	0	50,000	(300,000)	200,000
Unrecognized compensation expenses	0		0
Fair value of restricted share units vested	$ 0	$ 0	$ 1,100,000	$ 1,200,000

Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's Initial Public Offering, Narrative) (Details) (Changyou [Member], Share-based Awards Granted after Changyou's Initial Public Offering [Member], Restricted Share Units [Member])	9 Months Ended
	Sep. 30, 2013
Changyou [Member] \| Share-based Awards Granted after Changyou's Initial Public Offering [Member] \| Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of accumulated shares granted	1,585,552
Award vesting period	4 years

Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's Initial Public Offering, Restricted Share Units Activity) (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Changyou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	312,000	750,000	884,000	2,769,000
Changyou [Member] \| Share-based Awards Granted after Changyou's Initial Public Offering [Member] \| Restricted Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Unvested, Beginning balance (in shares)			526
Number of Units, Granted (in shares)			36
Number of Units, Vested (in shares)			(320)
Number of Units, Forfeited (in shares)			(12)
Number of Units, Unvested, Ending balance (in shares)	230		230
Number of Units, Expected to vest thereafter (in shares)			213
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance (in dollars per share)			$ 13.30
Weighted-Average Grant-Date Fair Value, Granted (in dollars per share)			$ 14.57
Weighted-Average Grant-Date Fair Value, Vested (in dollars per share)			$ 12.70
Weighted-Average Grant-Date Fair Value, Forfeited (in dollars per share)			$ 12.88
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance (in dollars per share)	$ 14.35		$ 14.35
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter (in dollars per share)	$ 14.38		$ 14.38
Share-based compensation expense	300,000	700,000	1,200,000	2,500,000
Unrecognized compensation expenses	1,000,000		1,000,000
Unrecognized compensation expenses, weighted average period for recognition			10 months 18 days
Fair value of restricted share units vested	$ 0	$ 0	$ 4,700,000	$ 4,000,000

Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) (Sogou [Member], Sogou 2010 Share Incentive Plan [Member], USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013 Ordinary Shares [Member]	Jun. 18, 2013 Ordinary Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance				36,000,000
Maximum term of issued stock right from grant date		10 years
Plan expiration date		Oct. 19, 2020
Accumulated number of shares issued			35,436,375
Number of options subject to vesting upon service period and achievement of performance targets		23,206,375
Installments of options subject to vesting upon service period and achievement of performance targets		Share options will become vested and exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou's achievement of performance targets for the corresponding period.
Number of share options set performance target	15,790,400	15,790,400
Share options vested and exercisable	10,040,650	10,040,650
Number of options subject to vesting upon the completion of Sogou's IPO		8,270,000
Installments of options subject to vesting upon the completion of Sogou's IPO		Share options will become vested and exercisable in four or five equal installments, with (i) the first installment vesting upon Sogou's completion of an initial public offering of its ordinary shares ("Sogou's IPO") and the expiration of all underwriters' lockup periods applicable to the IPO, and (ii) each of the three or four subsequent installments vesting on the first, second, third and, if applicable, fourth anniversary dates, respectively, of the closing of Sogou's IPO.
Number of options subject to vesting upon the anniversary of Sogou's IPO or acquisition by other entity		3,960,000
Installments of options subject to vesting upon the anniversary of Sogou's IPO or acquisition by other entity		Share options will become vested and exercisable in four equal installments, with (i) the first installment vesting upon the first anniversary of the occurrence of either of the following events ("Event"): (a) completion of Sogou's IPO; (b) the consolidation of Sogou with or the acquisition of Sogou by another person or entity in a sale of all or substantially all of its assets or shares, and (ii) each of the three subsequent installments vesting on the second, third and fourth anniversary dates, respectively, of the occurrence of an Event.
Share-based compensation expense for options subject to vesting upon the completion of Sogou's IPO	$ 0	$ 0

Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Options Activity) (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Sogou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,156,000	1,653,000	2,326,000	2,812,000
Sogou [Member] \| Sogou 2010 Share Incentive Plan [Member] \| Share Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Shares, Outstanding, Beginning balance (in shares)			6,345
Number Of Shares, Granted (in shares)			17,076
Number Of Shares, Exercised (in shares)			(5,339)
Number Of Shares, Forfeited or expired (in shares)			(96)
Number Of Shares, Outstanding, Ending balance (in shares)	17,986		17,986
Number Of Shares, Vested, Ending balance, and expected to vest thereafter (in shares)	5,641		5,641
Number Of Shares, Exercisable, Ending balance (in shares)	6		6
Weighted Average Exercise Price, Outstanding, Beginning balance (in dollars per share)			$ 0.001
Weighted Average Exercise Price, Granted (in dollars per share)			$ 0.264
Weighted Average Exercise Price, Exercised (in dollars per share)			$ 0.001
Weighted Average Exercise Price, Forfeited or expired (in dollars per share)			$ 0.001
Weighted Average Exercise Price, Outstanding, Ending balance (in dollars per share)	$ 0.251		$ 0.251
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance	8.90		8.90
Share-based compensation expense	1,700,000	1,400,000	1,800,000	2,400,000
Unrecognized compensation expenses	$ 2,000,000		$ 2,000,000
Unrecognized compensation expenses, weighted average period for recognition			3 months 9 days

Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Options Assumptions) (Details) (Sogou [Member], Sogou 2010 Share Incentive Plan [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected option life	10 years
Dividend yield	0.00%
Fair value	$ 0.67
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	2.10%
Exercise multiple	2
Expected forfeiture rate (Post-vesting)	1.30%
Volatility rate	47.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	2.87%
Exercise multiple	3
Expected forfeiture rate (Post-vesting)	6.00%
Volatility rate	49.00%

Sohu.com Inc. Shareholders' Equity (Share-based Awards to Sohu Management, Narrative) (Details) (Sogou [Member], Management Share Option Arrangement [Member], USD $)	3 Months Ended	9 Months Ended	0 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Apr. 14, 2011 Ordinary Shares [Member]	Sep. 30, 2013 Ordinary Shares [Member]	Mar. 31, 2011 Ordinary Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance					12,000,000
Fixed exercise price of ordinary share					$ 0.625
Sogou's ordinary shares previously held by Sohu.com Inc.					8,800,000
Sogou's newly-issued shares			3,200,000
Sogou's newly-issued shares, price per share			$ 0.625
Sogou's newly-issued shares, value			$ 2,000,000
Accumulated number of shares issued				11,378,500
Number of options subject to vesting upon service period and achievement of performance targets		8,978,500
Installments of options subject to vesting upon service period and achievement of performance targets		Share options will become vested and exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou's achievement of performance targets for the corresponding period.
Number of share options set performance target	6,585,750	6,585,750
Share options vested and exercisable	5,105,500	5,105,500
Number of options subject to vesting upon the completion of Sogou's IPO		2,400,000
Installments of options subject to vesting upon the completion of Sogou's IPO		Share options will become vested and exercisable in five equal installments, with (i) the first installment vesting upon Sogou's IPO and the expiration of all underwriters' lockup periods applicable to the IPO, and (ii) each of the four subsequent installments vesting on the first, second, third and fourth anniversary dates, respectively, of the closing of Sogou's IPO.
Share-based compensation expense for options subject to vesting upon the completion of Sogou's IPO	$ 0	$ 0

Sohu.com Inc. Shareholders' Equity (Share-based Awards to Sohu Management, Share Options Activity) (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,198,000	$ 3,843,000	$ 5,523,000	$ 10,202,000
Sogou [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,156,000	1,653,000	2,326,000	2,812,000
Sogou [Member] \| Management Share Option Arrangement [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Shares, Outstanding, Beginning balance (in shares)			2,178
Number Of Shares, Granted (in shares)			4,638
Number Of Shares, Exercised (in shares)			(2,936)
Number Of Shares, Forfeited or expired (in shares)			0
Number Of Shares, Outstanding, Ending balance (in shares)	3,880		3,880
Number Of Shares, Vested, Ending balance, and expected to vest thereafter (in shares)	1,475		1,475
Number Of Shares, Exercisable, Ending balance (in shares)	0		0
Weighted Average Exercise Price, Outstanding, Beginning balance (in dollars per share)			$ 0.625
Weighted Average Exercise Price, Granted (in dollars per share)			$ 0.625
Weighted Average Exercise Price, Exercised (in dollars per share)			$ 0.625
Weighted Average Exercise Price, Outstanding, Ending balance (in dollars per share)	$ 0.625		$ 0.625
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance	8.74		8.74
Share-based compensation expense	500,000	200,000	500,000	382,000
Unrecognized compensation expenses	$ 300,000		$ 300,000
Unrecognized compensation expenses, weighted average period for recognition			3 months

Sohu.com Inc. Shareholders' Equity (Share-based Awards to Sohu Management, Share Options Assumptions) (Details) (Sogou [Member], Management Share Option Arrangement [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected option life	10 years
Dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	2.10%
Exercise multiple	2
Expected forfeiture rate (Post-vesting)	0.00%
Volatility rate	47.00%
Fair value	$ 0.27
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	2.87%
Exercise multiple	3
Expected forfeiture rate (Post-vesting)	8.00%
Volatility rate	48.00%
Fair value	$ 0.38

Sohu.com Inc. Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification, Narrative) (Details) (Sogou [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional share-based compensation expense due to modification	$ 0
Number of accumulated options granted under the plan	20,470,000
Sogou 2010 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of accumulated options granted under the plan	19,245,000
Management Share Option Arrangement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of accumulated options granted under the plan	1,225,000

Business Transactions (Sogou Transactions) (Details) (Sogou [Member], USD $) In Millions, unless otherwise specified	3 Months Ended			3 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended
	Sep. 30, 2013 Series A Preferred Shares [Member]	Jun. 29, 2012 Alibaba [Member] Series A Preferred Shares [Member]	Oct. 22, 2010 Alibaba [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 China Web [Member] Series A Preferred Shares [Member]	Oct. 22, 2010 China Web [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 Photon [Member] Series A Preferred Shares [Member]	Oct. 22, 2010 Photon [Member] Series A Preferred Shares [Member]	Sep. 16, 2013 Tencent [Member]	Sep. 30, 2013 Sohu [Member] Series A Preferred Shares [Member]
Restructuring Cost and Reserve [Line Items]
Newly-issued Series A Preferred Shares, shares			24.0		14.4		38.4
Newly-issued Series A Preferred Shares, value			$ 15		$ 9		$ 24
Purchase of Series A Preferred Shares from Alibaba, shares		24.0
Purchase of Series A Preferred Shares from Alibaba, cash consideration		25.8
Cash proceeds from Tencent invested in Sogou								448
Sogou special dividend paid to Series A Preferred Shareholders	$ 301			$ 97		$ 43			$ 161

Business Transactions (Sogou Transactions, Sogou's Shareholding Structure) (Details) (Sogou [Member], USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013 Ordinary Shares and Preferred Shares [Member]	Sep. 30, 2013 Sohu [Member] Class A Ordinary Shares [Member]	Sep. 30, 2013 Sohu [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 Photon [Member] Series A Preferred Shares [Member]	Sep. 16, 2013 Photon [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 China Web [Member] Series A Preferred Shares [Member]	Sep. 30, 2013 Tencent [Member] Non-voting Class B Ordinary Shares [Member]	Sep. 30, 2013 Tencent [Member] Series B Preferred Shares [Member]	Sep. 30, 2013 Certain employees of Sogou and Sohu [Member] Class A Ordinary Shares [Member]
Shareholding in Independently Listed Subsidiary [Line Items]
Shares, outstanding		370,771,658	134,107,750	24,000,000	38,400,000		14,400,000	79,368,421	65,431,579	15,063,908
Shares to be purchased by Sohu management and key employees			6,907,750
Repurchase Option Agreement of Series A Preferred Shares, shares				24,000,000	6,400,000	6,400,000
Impact on Sohu's basic net income per share	$ 0

Business Transactions (Sogou Transactions, Terms of Preferred Shares of Sogou) (Details) (Sogou [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Series A Preferred Shares [Member]
Restructuring Cost and Reserve [Line Items]
Dividend rate per annum per Preferred Share	$ 0.0375
Times over original sales price preferred shareholders entitled to receive in event of liquidation	1.3
Preferred share conversion price	$ 0.625
Series B Preferred Shares [Member]
Restructuring Cost and Reserve [Line Items]
Dividend rate per annum per Preferred Share	$ 0.411
Liquidation Preference Price	$ 6.847
Preferred share conversion price	$ 7.267