By Dave Sebastian 



  Sogou Inc. said Tuesday it has agreed to go private in a buyout by Tencent Holdings Ltd. for $9 in cash a share or American depositary share. 


  The combination represents a premium of about 57% over the closing trading price of the American depositary shares on July 24, the last trading day before Sogou confirmed the receipt of Tencent's going-private proposal. Sogou will become an indirect wholly-owned Tencent subsidiary after the deal is expected to close in the fourth quarter. 


  The buyout is the latest instance of a Chinese technology company abandoning the U.S. stock market. Sogou, a rival to the larger Baidu Inc., went public on the New York Stock Exchange in late 2018, in a spinoff from portal operator Sohu Inc. However, since then Sogou's stock has mostly languished below its debut price. 


  Sohu.com Ltd., Sogou's current indirect controlling shareholder, said it has agreed through its subsidiary to sell all Class A and Class B shares of Sogou. 


  Sogou American depositary shares closed 0.8% higher at $8.67 Monday. 


  Write to Dave Sebastian at dave.sebastian@wsj.com