Sohu to deploy 1.2 billion USD cash pile for social media expansion
Sohu CEO Charles Zhang announced plans to prioritize capital investment into the firm’s social media platform over dividends or other uses for its 1.2 billion USD cash reserves.
During an event held on October 31, Sohu founder and CEO Charles Zhang stated that the company holds 1.2 billion USD in cash reserves. Addressing investor queries regarding capital allocation, Zhang confirmed that the firm plans to fund a significant expansion of its social media business rather than distribute the funds.
Sohu is currently refining its ”follow feed” product, which prioritizes direct user-to-user connections and human-curated content. Unlike algorithm-driven platforms that create tailored user profiles, Sohu intends to build a decentralized network where users engage with creators based on explicit interests. Zhang described the model as a ”semi-open circle of friends.”
The company’s most recent financial report for Q2 2026 showed total revenue of 136 million USD and a modest net profit of 200,000 USD. This shift toward social media represents a strategic effort to regain market relevance in a competitive landscape dominated by algorithmic recommendation engines.