Momo Receives Buyout Bid From Investor Group That Includes Co-founder

Chinese social networking company Momo Inc. said it received a buyout proposal from a group of investors, which includes co-founder Yan Tang, who already own a combined 47.8% of the company. The group has offered to pay $18.90 in cash for each U.S.-listed share it doesn't already own, representing a 20.5% premium to Monday's closing price of $15.69. The investor group also includes Matrix Partners China II Hong Kong Ltd., Sequoia Capital China Investment Management L.P. and Huatai Ruilian Fund Management Co. Momo's board has formed a special committee to evaluate the buyout bid. Momo's stock, which was currently halted for news dissemination, is set to resume trade at 9 a.m. Eastern. It has soared 31% year to date, while the S&P 500 has gained 3.1%.