Company Overview

Changyou.com Limited (NASDAQ: CYOU) is a leading developer and operator of online games in China and has been trading on the NASDAQ Global Select Market since April 2009. We engage in the development, operation and licensing of a diverse range of online games and we are committed to producing the highest quality games through our strategy of “Top Games, Big IP and Mass Marketing”.

Our flagship PC game, TLBB, is indisputably one of the largest and most successful PC games ever in China. Over its ten years of operation, the game has accumulated a user base of close to 300 million and continues to be an all-time favorite for many game players. In May 2017, we launched our Legacy TLBB mobile game, which was developed by our original TLBB PC team. The new mobile game builds on the essence of our TLBB PC game incorporating many of its classic social features and was designed to re-attract the large group of users that were once loyal to our PC game. In addition, we simplified some of the gameplay, which makes it easier for brand new players to operate within the game and extends the user base to a younger generation. In addition, our other games in operation, such as PC game Blade Online and mobile game TLBB 3D, remain popular among game players.

In terms of our technical capabilities, we have developed industry-leading rendering latency, distributed server clustering and motion capture technologies based on the Unity 5, CryEngine and UNREAL 4 game engines. In addition, our proprietary Fairy and Titan game engines were two of the early movers in applying advanced technologies, such as rendering latency, real-time panoramic illumination and dynamic soft shadow technologies, to produce high definition game effects. Furthermore, we also have an advanced technology platform that includes advanced 2.5D and 3D graphics engines, a uniform game development platform, effective anti-cheating and anti-hacking technologies, proprietary cross-networking technology and advanced data protection technology.

In terms of IP, we have obtained the rights to develop and operate online games based on a wide variety of popular IP, including most of Louis Cha’s novels, part of Huang Yi’s, Softstar’s “Legend of Sword and Fairy” and “Xuan Yuan Jian”, as well as a number of well-known Japanese animation comics, and online literature titles.

We own and operate the 17173.com Website, which is one of the most influential online game information portals in China, covering over 95% of PC and VR games, as well as more than 30,000 mobile games. 17173.com provides players with game-related media services such as news, game strategies, videos and forums.

Jingmao, our wholly owned subsidiary, focuses on cinema advertising. We purchase advertising slots that appear before movies at the cinema from movie theater operators and resell them to advertisers. We address the need of advertisers with our creative marketing initiatives and rich resources at 900 cinemas in over 200 cities.

For the year ended December 31, 2016, our revenues were $525.4 million and our net income attributable to Changyou.com Limited was $144.9 million.