Sohu Moves to Acquire Changyou Ltd.  (NASDAQ: CYOU) shares made a massive gain on Monday after the firm said that it had received an acquisition offer from Ltd. (NASDAQ: SOHU).

Under the terms of the offer, Sohu would pay $5 per Class A share, or $10 per American Depositary share (ADS), which represents two ordinary shares.

As Sohu holds all the Class B ordinary shares of Changyou currently outstanding, the transaction, if completed, would result in Changyou becoming a privately held, indirect wholly owned subsidiary of Sohu, and Changyou’s ADSs would be delisted from the Nasdaq.

In the letter sent to Changyou, Sohu detailed:

We believe that this Proposal provides a very attractive opportunity to Changyou’s shareholders. Although this Proposal does not entail a change of control transaction, this Proposal represents a premium of 69% over the closing price of Changyou’s ADSs on September 6, 2019 and a premium of 57% over the average closing price of Changyou’s ADSs during the last 30 trading days.

Shares of Changyou traded up about 51% to $8.94 early Monday, in a 52-week range of $5.43 to $22.27. The consensus price target is $11.88.

Sohu shares traded up about 9%, at $11.83 in a 52-week range of $8.79 to $23.60. The consensus analyst target is $20.44.

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