Rumor: Sohu.com Will Acquire 21 East

By TechSecurityChina.com Editor
December 13, 2006

Sohu.com (SOHU), which entered the Chinese entertainment arena with a new culture and entertainment company in June 2006, is rumored by local media to be planning to acquire 21 East, a diversified culture and entertainment firm on the mainland.

Zhang Weining, general manager of 21 East, however says this is not true and they are only having some basic cooperation with Sohu.com. 21 East manages many famous singers, including He Jiong, Tian Zhen, Mao Ning and Ku Kui Kei.

21 East, a traditional music company, might unveil new business opportunities for itself if it releases music by combining the Internet with its conventional channels. Though Sohu.com entered the entertainment industry a few months ago, it has yet to release any albums or major announcements. The acquisition of 21 East will help Sohu.com gain some content and momentum for its own entertainment products.

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