Exhibit (c) (3)

Project Legend D I S C U S S I O N M AT E R I A L S F O R T H E S P E C I A L C O M M I T T E E J A N U A R Y 2 3 , 2 0 2 0 P R E L I M I N A R Y A N D C O N F I D E N T I A L | S U B J E C T T O F U R T H E R R E V I E W A N D R E V I S I O N

Table of Contents Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 Selected Benchmarking Information 17 Selected Changyou Public Market Observations 19 4. Glossary 30 5. Disclaimer 33

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 4. Glossary 30 5. Disclaimer 33

Executive Summary Transaction Overview Summary of Transaction Value (dollars, RMB and ADS in millions, except per ADS values) Per ADS Transaction Consideration $10.80 Basic Shares Outstanding 53.6 Dilutive ADS [1] 2.5 Fully Diluted Shares Outstanding 56.1 Implied Equity Value $606.0 Cash, Restricted Cash and Cash Equivalents [2] (94.4) Short-Term Investments [2] (211.9) Loan to Sohu [3] (160.0) Wanda Plaza Book Value [4] (25.8) Net Matching Loan Liability [5] 1.2 Withholding Tax Payable [6] 123.4 Non-Controlling Interest [2] 1.6 Withholding Tax on Cash to be Distributed [7] 32.0 Present Value of Withholding Tax on Future Cash Flow [8] 13.0 Implied Enterprise Value (USD) $285.1 USD to RMB Exchange Rate as of 1/21/20 6.91 Implied Enterprise Value (RMB) ¥1,969.0 Implied Transaction Multiples Corresponding Adjusted EBITDA Base Amount Implied Multiples CY 2019 [9] ¥1,268.7 1.6x CY 2020E [10] ¥762.8 2.6x CY 2021E [10] ¥541.7 3.6x Implied Premiums to Historical Unaffected ADS Trading Prices (dollars per ADS in actuals) Average Adjusted Average Implied Premium Adjusted Implied Premium Closing / of Per ADS Transaction Closing / of Per ADS Transaction Unaffected Closing Consideration over Closing Consideration over Trading Period ADS Average Closing / ADS Average Closing / As of 9/6/19 [11] Price [12] Closing ADS Price Price [13] Closing ADS Price 1-Day Closing $5.92 82.4% 5-Day Average Closing $5.77 87.3% 10-Day Average Closing $5.73 88.4% 1-Month Average Closing $5.92 82.5% 3-Month Average Closing $8.12 33.1% 6-Month Average Closing $12.74 (15.2%) $8.26 30.7% 1-Year Average Closing $14.87 (27.4%) $7.96 35.7% 52-Week High—2/21/19 Closing $21.81 (50.5%) $12.41 (13.0%) 52-Week Low—8/28/19 Closing $5.51 96.0%

Executive Summary Transaction Overview (cont.) Source: Public filings, Capital IQ, Company management. Note: Changyou.com, Ltd. is referred to herein as the “Company” or “Changyou”. 1. Represents the net dilutive impact of an equivalent of 2.5 million ADS options outstanding based on the treasury method, per Company management. Per public filings and Company management, one ADS is equivalent to two Class A ordinary shares. 2. Per Company management in USD as of 12/31/2019. 3. Represents book value of loan between Changyou and Sohu as of 12/31/2019 as provided by Company management in USD. 4. Represents real estate owned by the Company and leased out to third parties. Company management has indicated that the net book value of RMB 180.2 million as of 12/31/2019 approximates fair value and to utilize this figure for purposes of our analyses. The net book value is converted from RMB to USD at an exchange rate of 6.98 conversion rate, per Company management. 5. Represents an arrangement between Changyou and Sohu whereby loans are provided by both parties such that Sohu receives RMB onshore and Changyou receives USD offshore loans. Net matching loan liability as of 12/31/2019 provided in USD and calculated as matching liability less matching receivable. 6. Per Company management, the Company incurs withholding taxes based on amounts distributed to shareholders and through offshore loans. Company management has indicated that the Company is likely to pay taxes at 7.5%, representing a total withholding tax liability of ~$123.4 million based on dividends previously paid. 7. Per Company management, the balance of all Company (i) onshore cash, restricted cash and cash equivalents, (ii) onshore short-term investments, and (iii) proceeds from the loan to Sohu will be paid out as dividends in the near term, and as such the withholding tax on cash to be distributed represents the amount to be reserved for future withholding taxes. 8. Per Company management, as consistent with historical precedents, the Company plans to continue to distribute future free cash flows to shareholders and/or enter into offshore loans, both of which incur withholding taxes. Per Company management, represents the midpoint of the present value (at a discount rate range of 16.0% to 25.0%) of withholding taxes on future distributions and offshore loans assuming all taxes accrued on free cash flows in the discrete forecast period are paid in 2024, distributions and offshore loans continue to be made into perpetuity, and withholding taxes are 7.5%. 9. Historical Adjusted EBITDA per Company management, and converted from RMB to USD at an exchange rate of 6.90, per Company management. 10. Projected Adjusted EBITDA for the years 2020E and 2021E are provided by Company management in RMB. 11. Sohu, the controlling shareholder of Changyou, announced its proposal to acquire the remaining Class A shares or ADSs of Changyou not currently owned for $5.00 per Class A share or $10.00 per ADS on 9/9/19. Changyou announced its receipt of this proposal on 9/6/19 in a 6-K filed on 9/9/19. 12. Per Capital IQ. 13. Represents Changyou’s closing ADS price adjusted for the 2019 Dividend paid on 6/3/2019. Assumes the impact on stock price prior to the 2019 Dividend is equivalent to the dividend amount per ADS and that there is no benefit or loss from reinvestment of the dividend proceeds.

Selected Changes From the Special Committee Preliminary Discussion Materials Dated January 16, 2020 (dollars in millions, except per ADS values) January 16, 2020 January 23, 2020 Change (Market Data as of January 13, 2020) (Market Data as of January 21, 2020) Selected Companies Analysis Selected Adjusted EBITDA Multiples CY 2019 1.5x – 3.5x 1.5x – 3.5x 0.0x – 0.0x CY 2020E 2.0x – 4.0x 2.0x – 4.0x 0.0x – 0.0x CY 2021E 2.5x – 4.5x 2.5x – 4.5x 0.0x – 0.0x Discounted Cash Flow Analysis Selected Long-Term Growth Rate -5.0% – 5.0% -5.0% – 5.0% 0.0% – 0.0% Selected Discount Rate 16.0% – 25.0% 16.0% – 25.0% 0.0% – 0.0% Selected Financial Information 2019 Adjusted EBITDA ¥1,221.2 ¥1,268.7 ¥47.5 2020E Adjusted EBITDA ¥762.8 ¥762.8 ¥0.0 2021E Adjusted EBITDA ¥541.7 ¥541.7 ¥0.0 Implied Per ADS Reference Ranges Selected Companies Analysis Selected Adjusted EBITDA Multiples CY 2019 $9.94 – $16.50 $10.51 – $17.24 $0.57 – $0.74 CY 2020E $9.11 – $13.21 $9.53 – $13.65 $0.42 – $0.44 CY 2021E $8.65 – $11.57 $9.09 – $12.07 $0.44 – $0.50 Discounted Cash Flow Analysis $9.64 – $11.74 $9.44 – $11.74 $(0.20) – $0.00 • The report dated January 23, 2020 includes updated ADS counts reflecting fully diluted ADS of ~56.1 million compared to ~54.0 million in the report dated January 16, 2020. • For the report dated January 23, 2020, the Discounted Cash Flows analysis no longer includes the present value of the stub period for CY 2019 and instead includes the full year impact of CY 2020 as the first period.

Selected Changes From the Special Committee Preliminary Discussion Materials Dated January 16, 2020 (dollars, RMB and ADS in millions, except per ADS values) January 16, 2020 January 23, 2020 (Balance Sheet as of (Balance Sheet as of September 30, 2019) Changes December 31, 2019) Non-Operating Assets/Liabilities Cash, Restricted Cash and Cash Equivalents [1] $86.8 $7.6 $94.4 Short-Term Investments [1] 163.5 48.4 211.9 Loan to Sohu [2] 155.6 4.4 160.0 Wanda Plaza Book Value [3] 26.3 + (0.5) = 25.8 Net Matching Loan Liability [4] (36.6) 35.4 (1.2) Non-Controlling Interest [1] (1.6) 0.0 (1.6) Withholding Tax Payable [5] (123.4) 0.0 (123.4) Withholding Tax on Cash to be Distributed [6] 0.0 (32.0) (32.0) Present Value of Withholding Tax on Future Cash Flow [7] 0.0 (13.0) (13.0) Sum of Non-Operating Assets/Liabilities $270.6 $50.3 $320.9 Per Diluted Share Amount [8] $4.82 $0.90 $5.72 Sources: Public filings, Company management. Note: Non-operating assets/liabilities per Company management as of 9/30/2019 for the report dated January 16, 2020 and as of 12/31/2019 for the report dated January 23, 2020. 1. Per Company management in USD. 2. Represents book value of loan between Changyou and Sohu as provided by Company management in USD. 3. Represents real estate owned by the Company and leased out to third parties. The net book value is converted from RMB to USD at exchange rates provided by Company management. 4. Represents an arrangement between Changyou and Sohu whereby loans are provided by both parties such that Sohu receives RMB onshore and Changyou receives USD offshore loans. Net matching loan liability provided in USD and calculated as matching liability less matching receivable. 5. Per Company management, the Company incurs withholding taxes based on amounts distributed to shareholders and through offshore loans. Company management has indicated that the Company is likely to pay taxes at 7.5%, representing a total withholding tax liability of ~$123.4 million based on dividends previously paid. 6. Per Company management, the balance of all Company (i) onshore cash, restricted cash and cash equivalents, (ii) onshore short-term investments, and (iii) proceeds from the loan to Sohu will be paid out as dividends in the near term, and as such the withholding tax on cash to be distributed represents the amount to be reserved for future withholding taxes. 7. Per Company management, as consistent with historical precedents, the Company plans to continue to distribute future free cash flows to shareholders and/or enter into offshore loans, both of which incur withholding taxes. Per Company management, represents the midpoint of the present value (at a discount rate range of 16.0% to 25.0%) of withholding taxes on future distributions and offshore loans assuming all taxes accrued on free cash flows in the discrete forecast period are paid in 2024, distributions and offshore loans continue to be made into perpetuity, and withholding taxes are 7.5%. 8. Based on an equivalent of 53.6 million ADS outstanding and the net dilutive impact of an equivalent of 2.5 million ADS options outstanding based on the treasury method, per Company management. Per public filings and Company management, one ADS is equivalent to two Class A ordinary shares. Preliminary and Confidential | Subject to Further Review and Revision 7

Selected Changes From the Special Committee Preliminary Discussion Materials Dated January 16, 2020 (cont.) Additionally, since the Special Committee Discussion Materials Dated January 16, 2020, the following market changes have occurred with regards to the Selected Companies: Prior Materials dated 1/16/2020 Current Materials dated 1/23/2020 Market Data as of 1/13/2020 Market Data as of 1/21/2020 Change [1] Share/ADS Enterprise Value [1] to Adjusted EBITDA Share/ADS Enterprise Value [1] to Adjusted EBITDA Share/ADS Enterprise Value [2] to Adjusted EBITDA Selected Companies Price LTM CY 2019E CY 2020E CY 2021E Price LTM CY 2019E CY 2020E CY 2021E Price LTM CY 2019E CY 2020E CY 2021E FriendTimes Inc. $0.14 4.4x NA NA NA $0.14 4.6x NAA NAA NA N ($0.00) 0.2x NA NA NA Gravity Co., Ltd. $34.68 2.5x NA NA NA $35.55 2.8x NAA NAA NA N $0.87 0.2x NA NA NA GungHo Online Entertainment, Inc. $20.33 2.1x 2.4x 3.2x 4.4x $20.60 2.2x 2.4x 3.2x 4.5x $0.27 0.0x 0.0x 0.0x 0.1x IGG Inc $0.83 4.4x 4.8x 4.5x 4.1x $0.80 4.1x 4.5x 4.2x 3.9x ($0.03) (0.3x) (0.3x) (0.3x) (0.2x) Webzen Inc. $14.05 5.0x 4.7x 3.6x 2.9x $13.67 4.6x 4.4x 3.4x 2.7x ($0.38) (0.3x) (0.3x) (0.2x) (0.2x) Low 2.1x 2.4x 3.2x 2.9x 2.2x 2.4x 3.2x 2.7x 0.0x 0.0x 0.0x (0.2x) High 5.0x 4.8x 4.5x 4.4x 4.6x 4.5x 4.2x 4.5x (0.3x) (0.3x) (0.3x) 0.1x Median 4.4x 4.7x 3.6x 4.1x 4.1x 4.4x 3.4x 3.9x (0.3x) (0.3x) (0.2x) (0.2x) Mean 3.7x 4.0x 3.7x 3.8x 3.6x 3.8x 3.6x 3.7x (0.0x) (0.2x) (0.1x) (0.1x) Changyou $10.32 2.1x 2.2x 2.0x 1.9x $10.12 2.1x 2.1x 2.0x 1.8x ($0.20) (0.0x) (0.1x) (0.1x) (0.1x) Sources: Public filings, Capital IQ, Bloomberg. Note: No company used in this analysis for comparative purposes is identical to the Company. 1. Computed as Current Materials dated 1/23/2020 less Prior Materials dated 1/16/2020. 2. Enterprise value equals equity market value + debt outstanding + preferred stock + minority interests – cash and cash equivalent. 8 Preliminary and Confidential | Subject to Further Review and Revision

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 4. Glossary 30 5. Disclaimer 33

Financial Analyses Summary Implied Per ADS Value Reference Ranges (dollars in actuals) Per ADS Transaction Consideration: $10.80 CY 2019 $10.51 $17.24 1.5x – 3.5x Analysis EBITDA CY 2020E $9.53 $13.65 Companies Adjusted 2.0x – 4.0x Selected CY 2021E $9.09 $12.07 2.5x – 4.5x Cash Perpetual Growth -5.0% – 5.0% Analysis $9.44 $11.74 Discount Rate Discounted Flow 16.0% – 25.0% $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 Source: Company management, Capital IQ, Bloomberg, public filings. Note: Based on an equivalent of 53.6 million ADS outstanding and the net dilutive impact of an equivalent of 2.5 million ADS options outstanding based on the treasury method, per Company management. Per public filings and Company management, one ADS is equivalent to two Class A ordinary shares. Preliminary and Confidential | Subject to Further Review and Revision

Financial Analyses Summary (cont.) Implied Per ADS Value Reference Ranges (dollars, RMB and ADS in millions, except per ADS values) Selected Companies Selected Companies Selected Companies Discounted Cash Flow Analysis Analysis Analysis Analysis CY 2019 CY 2020E CY 2021E Perpetual Growth Rate Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA -5.0% — 5.0% Discount Rate Corresponding Base Amount ¥1,268.7 ¥762.8 ¥541.7 16.0% — 25.0% Selected Multiples Range 1.5x — 3.5x 2.0x — 4.0x 2.5x — 4.5x Implied Enterprise Value Reference Range (RMB) ¥1,903.1 — ¥4,440.5 ¥1,525.6 — ¥3,051.1 ¥1,354.2 — ¥2,437.6 ¥1,491.0 — ¥2,312.4 RMB to USD Exchange Rate on 1/21/2020 [1] 0.145 — 0.145 0.145 — 0.145 0.145 — 0.145 0.145 — 0.145 Implied Enterprise Value Reference Range (USD) $275.6 — $643.1 $220.9 — $441.9 $196.1 — $353.0 $215.9 — $334.9 Cash, Restricted Cash and Cash Equivalents as of 12/31/2019 [2] 94.4 — 94.4 94.4 — 94.4 94.4 — 94.4 94.4 — 94.4 Short-Term Investments as of 12/31/2019 [2] 211.9 — 211.9 211.9 — 211.9 211.9 — 211.9 211.9 — 211.9 Loan to Sohu as of 12/31/2019 [3] 160.0 — 160.0 160.0 — 160.0 160.0 — 160.0 160.0 — 160.0 Wanda Plaza Book Value as of 12/31/2019 [4] 25.8 — 25.8 25.8 — 25.8 25.8 — 25.8 25.8 — 25.8 Implied Total Enterprise Value Reference Range $767.7 — $1,135.2 $713.0 $934.0 $688.2 $845.1 $708.0 — $827.0 Net Matching Loan Liability as of 12/31/2019 [5] (1.2) — (1.2) (1.2) — (1.2) (1.2) — (1.2) (1.2) — (1.2) Withholding Tax Payable as of 12/31/2019 [6] (123.4) — (123.4) (123.4) — (123.4) (123.4) — (123.4) (123.4) — (123.4) Non-Controlling Interests as of 12/31/2019 [2] (1.6) — (1.6) (1.6) — (1.6) (1.6) — (1.6) (1.6) — (1.6) Withholding Tax on Cash to be Distributed [7] (32.0) — (32.0) (32.0) — (32.0) (32.0) — (32.0) (32.0) — (32.0) Present Value of Withholding Tax on Future Cash Flow [8] (20.0) — (9.8) (20.0) — (9.8) (20.0) — (9.8) (20.0) — (9.8) Implied Total Equity Value Reference Range $589.5 — $967.1 $534.8 — $765.9 $510.0 — $677.0 $529.8 — $658.9 ADS Outstanding [9] 56.1 — 56.1 56.1 — 56.1 56.1 — 56.1 56.1 — 56.1 Implied Per ADS Value Reference Ranges $10.51 — $17.24 $9.53 — $13.65 $9.09 — $12.07 $9.44 — $11.74 See following page for footnotes. Preliminary and Confidential | Subject to Further Review and Revision 11

Financial Analyses Summary (cont.) Source: Company management, Capital IQ, Bloomberg, public filings. Note: No particular weight was attributed to any analysis. 1. Per Capital IQ as of 1/21/2020. 2. Per company management in USD as of 12/31/2019. 3. Represents book value of loan between Changyou and Sohu as of 12/31/2019 as provided by Company management in USD. 4. Represents real estate owned by the Company and leased out to third parties. Company management has indicated that the net book value of RMB 180.2 million as of 12/31/2019 approximates fair value and to utilize this figure for purposes of our analyses. The net book value is converted from RMB to USD at an exchange rate of 6.98 conversion rate, per Company management. 5. Represents an arrangement between Changyou and Sohu whereby loans are provided by both parties such that Sohu receives RMB onshore and Changyou receives USD offshore loans. Net matching loan liability as of 12/31/19 provided in USD and calculated as matching liability less matching receivable. 6. Per Company management, the Company incurs withholding taxes based on amounts distributed to shareholders and through offshore loans. Company management has indicated that the Company is likely to pay taxes at 7.5%, representing a total withholding tax liability of ~$123.4 million based on dividends previously paid. 7. Per Company management, the balance of all Company (i) onshore cash, restricted cash and cash equivalents, (ii) onshore short-term investments, and (iii) proceeds from the loan to Sohu will be paid out as dividends in the near term, and as such the withholding tax on cash to be distributed represents the amount to be reserved for future withholding taxes. 8. Per Company management, as consistent with historical precedents, the Company plans to continue to distribute future free cash flows to shareholders and/or enter into offshore loans, both of which incur withholding taxes. Per Company management, represents the midpoint of the present value (at a discount rate range of 16.0% to 25.0%) of withholding taxes on future distributions and offshore loans assuming all taxes accrued on free cash flows in the discrete forecast period are paid in 2024, distributions and offshore loans continue to be made into perpetuity, and withholding taxes are 7.5%. 9. Based on an equivalent of 53.6 million ADS outstanding and the net dilutive impact of an equivalent of 2.5 million ADS options outstanding based on the treasury method, per Company management. Per public filings and Company management, one ADS is equivalent to two Class A ordinary shares.

Financial Analyses Selected Historical and Projected Financial Information (RMB in millions) Fiscal Year Ended December 31, Fiscal Year Ending December 31, CAGR CAGR 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2016 to 2019 2019 to 2024E PC Game ¥1,822.6 ¥1,615.7 ¥1,565.0 ¥1,849.1 ¥1,635.6 ¥1,401.1 ¥1,205.3 ¥1,037.8 ¥894.5 0.5% -13.5% Mobile Game 775.2 1,407.6 1,003.0 1,190.9 868.8 1,039.0 987.3 1,610.0 1,381.7 15.4% 3.0% Online Game 2,597.8 3,023.3 2,568.1 3,039.9 2,504.3 2,440.1 2,192.5 2,647.8 2,276.2 5.4% -5.6% Online Advertising 261.6 169.7 130.2 94.6 95.2 95.2 95.2 95.2 95.2 -28.8% 0.1% IVAS & Other 144.2 95.8 40.2 5.3 0.0 0.0 0.0 0.0 0.0 -66.8% NMF Revenues, Net [1] ¥3,003.6 ¥3,288.8 ¥2,738.5 ¥3,139.8 ¥2,599.5 ¥2,535.3 ¥2,287.7 ¥2,743.0 ¥2,371.4 1.5% -5.5% Growth % 462.7% 9.5% -16.7% 14.7% -16.3% -2.5% -9.8% 19.9% -13.5% Cost of Sales [1] (795.5) (532.5) (473.4) (656.9) (365.1) (469.2) (398.5) (645.8) (488.3) Gross Profit ¥2,208.1 ¥2,756.3 ¥2,265.1 ¥2,482.9 ¥2,234.5 ¥2,066.1 ¥1,889.2 ¥2,097.2 ¥1,883.1 Margin % 73.5% 83.8% 82.7% 79.1% 86.0% 81.5% 82.6% 76.5% 79.4% Operating Expenses [1] (1,386.0) (1,436.4) (1,212.2) (1,321.9) (1,572.7) (1,608.2) (1,524.0) (1,802.6) (1,704.4) Depreciation and Amortization 172.7 133.8 120.2 105.6 101.0 83.8 75.7 76.4 59.3 Total Adjustments [2] 30.2 18.7 9.8 2.1 0.0 0.0 0.0 0.0 0.0 Adjusted EBITDA ¥1,024.9 ¥1,472.4 ¥1,182.8 ¥1,268.7 ¥762.8 ¥541.7 ¥440.9 ¥371.1 ¥238.0 7.4% -28.4% Margin % 34.1% 44.8% 43.2% 40.4% 29.3% 21.4% 19.3% 13.5% 10.0% Growth % -140.1% 43.7% -19.7% 7.3% -37.5% -29.0% -18.6% -15.8% -35.9% Depreciation and Amortization (172.7) (133.8) (120.2) (105.6) (101.0) (83.8) (75.7) (76.4) (59.3) Adjusted EBIT ¥852.2 ¥1,338.6 ¥1,062.7 ¥1,163.1 ¥661.8 ¥457.9 ¥365.2 ¥294.6 ¥178.7 10.9% -31.2% Margin % 28.4% 40.7% 38.8% 37.0% 25.5% 18.1% 16.0% 10.7% 7.5% Additional Financial Information Capital Expenditures [3] ¥86.5 ¥24.3 ¥111.4 ¥8.5 ¥37.5 ¥29.4 ¥42.7 ¥35.0 ¥38.3 Net Working Capital [4] (¥89.5) ¥78.1 (¥498.7) (¥766.5) (¥743.8) (¥778.1) (¥763.7) (¥835.7) (¥800.3) Change in Net Working Capital [4] ¥56.0 ¥167.6 (¥576.8) (¥267.8) ¥22.7 (¥34.3) ¥14.4 (¥72.0) ¥35.4 Source: Company management, public filings. Note: Historical financials for 2016, 2017 and 2018 per public filings and have been converted from USD to RMB at exchange rates of 6.64, 6.76, and 6.61, respectively, per Company management. Historical financials for 2019 per Company management and have been converted from USD to RMB at an exchange rate of 6.89. Per Company management, depreciation and amortization, capital expenditures and net working capital balances do not exclude the balances from the Cinema advertising business for 2016, 2017 and 2018. Historical financials for 2016, 2017, and 2018 include the RaidCall business that was discontinued in 2019. 1. Historical financial results for the Cinema advertising business are not included as this business was wound down during the third quarter of 2019, as a result of Chinese courts granting a petition for bankruptcy relief. 2. Total Adjustments: Impairment Loss of Other Assets [5] ¥29.1 ¥19.8 ¥10.2 ¥2.1 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 Disposal (Gain)/Loss of Fixed Assets [6] 1.0 (1.1) (0.4) 0.0 0.0 0.0 0.0 0.0 0.0 Total Adjustments ¥30.2 ¥18.7 ¥9.8 ¥2.1 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 3. Capital expenditures include purchases of intangible assets. 4. Historical net working capital figures for 2016, 2017, and 2018 per public filings and have been converted to RMB using exchange rates of 6.94, 6.53, and 6.86 respectively, per Company management. Historical net working capital figures for 2019 per Company management have been converted from USD to RMB at an exchange rate of 6.98. 5. Represents impairment of license fee and prepaid sharing revenue. 6. Represents gains and losses from disposing the Company’s operating assets such as servers, IT equipment, etc. 13 Preliminary and Confidential | Subject to Further Review and Revision

Financial Analyses Selected Companies Analysis (dollars in millions, except per share / ADS values) Share / ADS Equity Market Enterprise Enterprise Value [1] to Adjusted EBITDA Selected Company Country Exchange Price [2] Value [2,3] Value [2,3] LTM CY 2019E CY 2020E CY 2021E FriendTimes Inc. China Hong Kong Stock Exchange $0.14 $317.1 $271.6 4.6x NA NA NA Gravity Co., Ltd. South Korea Nasdaq $36.12 251.0 147.6 2.8x NA NA NA GungHo Online Entertainment, Inc. Japan Tokyo Stock Exchange $20.46 1,425.8 713.6 2.2x 2.4x 3.2x 4.5x IGG Inc Singapore Hong Kong Stock Exchange $0.79 1,012.2 760.5 4.1x 4.5x 4.2x 3.9x Webzen Inc. South Korea KOSDAQ (Korea) $13.41 417.4 219.9 4.6x 4.4x 3.4x 2.7x Low 2.2x 2.4x 3.2x 2.7x High 4.6x 4.5x 4.2x 4.5x Median 4.1x 4.4x 3.4x 3.9x Mean 3.6x 3.8x 3.6x 3.7x Changyou (Current as of 1/21/2020) China Nasdaq $10.12 $539.5 $290.8 2.1x 2.1x 2.0x 1.8x Changyou (Unaffected as of 9/6/2019) [4] China Nasdaq $5.92 $316.4 $101.2 0.6x 0.7x 0.7x 0.6x Source: Bloomberg, Public filings and Capital IQ. Note: No company used in this analysis for comparative purposes is identical to the Company. 1. Enterprise value equals equity market value + debt outstanding + preferred stock + minority interests – cash and cash equivalents. 2. Based on closing prices as of 1/21/2020. 3. Based on diluted shares. 4. Sohu, the controlling shareholder of Changyou, announced its proposal to acquire the remaining Class A shares or ADSs of Changyou not currently owned for $5.00 per Class A share or $10.00 per ADS on 9/9/19. Changyou announced its receipt of this proposal on 9/6/19 in a 6-K filed on 9/9/19. Preliminary and Confidential | Subject to Further Review and Revision 14

Financial Analyses Discounted Cash Flow Analysis (RMB in millions) Projected Fiscal Year Ending December 31, Terminal Value Discount Implied 2024E Adjusted EBITDA 2020E 2021E 2022E 2023E 2024E Assumptions Rate Terminal Multiple [3] Revenues, Net ¥2,599.5 ¥2,535.3 ¥2,287.7 ¥2,743.0 ¥2,371.4 ¥2,371.4 -5.00% 0.00% 5.00% Growth % -16.3% -2.5% -9.8% 19.9% -13.5% 16.00% 3.6x 4.9x 7.5x 18.25% 3.3x 4.4x 6.3x Cost of Sales (365.1) (469.2) (398.5) (645.8) (488.3) (488.3) 20.50% 3.0x 3.9x 5.5x Operating Expenses (1,572.7) (1,608.2) (1,524.0) (1,802.6) (1,704.4) (1,683.4) 22.75% 2.8x 3.6x 4.8x Adjusted EBIT ¥661.8 ¥457.9 ¥365.2 ¥294.6 ¥178.7 ¥199.7 25.00% 2.6x 3.3x 4.3x Taxes [1] (105.9) (73.3) (58.4) (47.1) (28.6) (32.0) Unlevered Earnings ¥555.9 ¥384.6 ¥306.8 ¥247.5 ¥150.1 ¥167.8 Depreciation and Amortization 101.0 83.8 75.7 76.4 59.3 38.3 Discount PV of Terminal Value Capital Expenditures [2] (37.5) (29.4) (42.7) (35.0) (38.3) (38.3) Rate as a % of Enterprise Value Change in Net Working Capital (22.7) 34.3 (14.4) 72.0 (35.4) 6.8 -5.00% 0.00% 5.00% Unlevered Free Cash Flows ¥596.7 ¥473.3 ¥325.4 ¥360.9 ¥135.8 ¥174.5 16.00% 22.0% 28.0% 37.2% 18.25% 19.4% 24.4% 31.8% Present Value PV of Terminal Value Based 20.50% 17.2% 21.4% 27.5% of Cash Flows on Perpetual Growth Rate for Implied Enterprise Value 22.75% 15.4% 18.9% 23.9% Discount Rate (2020—2024) 2024 Unlevered Free Cash Flow 25.00% 13.7% 16.8% 20.9% -5.00% 0.00% 5.00% -5.00% 0.00% 5.00% 16.00% ¥1,451.1 ¥408.2 ¥563.9 ¥861.3 ¥1,859.3 ¥2,015.1 ¥2,312.4 18.25% ¥1,405.7 ¥338.5 ¥453.9 ¥656.5 ¥1,744.2 ¥1,859.6 ¥2,062.2 20.50% ¥1,363.2 + ¥283.8 ¥371.6 ¥516.1 = ¥1,647.0 ¥1,734.8 ¥1,879.2 22.75% ¥1,323.3 ¥240.2 ¥308.4 ¥415.1 ¥1,563.6 ¥1,631.8 ¥1,738.4 25.00% ¥1,286.0 ¥205.0 ¥258.9 ¥339.8 ¥1,491.0 ¥1,544.9 ¥1,625.8 Source: Company management, public filings. Note: Present values as of 1/21/2020. 1. Tax rate at 16.0%, per Company management. 2. Capital expenditures includes purchases of intangible assets. 3. Implied from corresponding discount rate and 2024E growth rate. 15 Preliminary and Confidential | Subject to Further Review and Revision

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 Selected Benchmarking Information 17 Selected Changyou Public Market Observations 19 4. Glossary 30 5. Disclaimer 33

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 Selected Benchmarking Information 17 Selected Changyou Public Market Observations 19 4. Glossary 30 5. Disclaimer 33

Selected Benchmarking Information Size Size [1] Leverage Liquidity (LTM Revenue, millions) (Enterprise Value as of 1/21/20, millions) (Debt to LTM Adjusted EBITDA as of 1/21/20) (Current Ratio as of 1/21/20) GungHo Online Entertainment $1,021.9 IGG Inc $760.5 Changyou 0.0% GungHo Online Entertainment 6.6 IGG Inc $715.0 GungHo Online Entertainment $713.6 Gravity Co., Ltd. 0.0% Webzen Inc. 5.9 Changyou $420.1 Changyou $290.8 IGG Inc 0.0% FriendTimes Inc. 3.9 Gravity Co., Ltd. $345.0 FriendTimes Inc. $271.6 FriendTimes Inc. 0.1% IGG Inc 2.8 FriendTimes Inc. $229.3 Webzen Inc. $219.9 GungHo Online Entertainment 0.7% Gravity Co., Ltd. 2.5 Webzen Inc. $157.3 Gravity Co., Ltd. $147.6 Webzen Inc. 4.2% Changyou 1.2 Changyou (Unaffected) [2] $101.2 ############## Historical Growth Historical Growth Projected Growth Projected Growth (CY 2017 to CY 2019 Revenue) [3] (CY 2018 to CY 2019 Revenue) [3] (CY 2019 to CY 2020E Revenue) [3] (CY 2019 to CY 2021E Revenue) [3] IGG Inc 8.2% GungHo Online Entertainment 16.9% Webzen Inc. 16.9% Webzen Inc. 17.3% GungHo Online Entertainment 8.0% Changyou 14.7% IGG Inc 2.2% IGG Inc 3.1% Webzen Inc. 4.1% IGG Inc -5.0% GungHo Online Entertainment -15.1% GungHo Online Entertainment -9.8% Changyou -2.3% Webzen Inc. -17.6% Changyou -17.2% Changyou -10.1% FriendTimes Inc. NA FriendTimes Inc. NA FriendTimes Inc. NA FriendTimes Inc. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA ############## -100000000000000.0% Historical Growth Historical Growth Projected Growth Projected Growth (CY 2017 to CY 2019 Adjusted EBITDA) [3] (CY 2018 to CY 2019 Adjusted EBITDA) [3] (CY 2019 to CY 2020E Adjusted EBITDA) [3] (CY 2019 to CY 2021E Adjusted EBITDA) [3] Webzen Inc. 5.4% GungHo Online Entertainment 17.1% Webzen Inc. 30.5% Webzen Inc. 28.3% IGG Inc -2.2% Changyou -13.8% IGG Inc 8.0% IGG Inc 8.0% GungHo Online Entertainment -4.3% Webzen Inc. -22.3% GungHo Online Entertainment -24.7% GungHo Online Entertainment -26.6% Changyou -7.2% IGG Inc -26.8% Changyou -39.9% Changyou -34.7% FriendTimes Inc. NA FriendTimes Inc. NA FriendTimes Inc. NA FriendTimes Inc. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA ############## ############## Profitability Profitability Profitability (LTM Adjusted EBITDA to LTM Revenue) [3] (CYE 2020 Adjusted EBITDA to CY 2020E Revenue) [3] (CY 2021E Adjusted EBITDA to CY 2021E Revenue) [3] Changyou 40.4% Webzen Inc. 36.2% Webzen Inc. 38.9% GungHo Online Entertainment 32.4% Changyou 29.3% IGG Inc 26.1% Webzen Inc. 30.2% GungHo Online Entertainment 26.9% Changyou 21.4% IGG Inc 23.8% IGG Inc 25.1% GungHo Online Entertainment 20.0% FriendTimes Inc. NA FriendTimes Inc. NA FriendTimes Inc. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA Gravity Co., Ltd. NA ############## Source: Company management, public filings, Capital IQ, Bloomberg. Note: No company used in this analysis for comparative purposes is identical to the Company. Note: Historical and projected Changyou financial results do not include the Cinema advertising business as the business was wound down during the third quarter of 2019 as a result of Chinese courts granting a petition for bankruptcy relief. 1. Based on public trading prices of common stock. 2. Based on price per ADS and public information as of 9/6/2019. 3. Selected companies’ 2019 financials are based on Wall Street research estimates for year end 12/31/2019. Preliminary and Confidential | Subject to Further Review and Revision 18

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 Selected Benchmarking Information 17 Selected Changyou Public Market Observations 19 4. Glossary 30 5. Disclaimer 33

Selected Changyou Public Market Observations Trading Snapshot Market Trading Overview (dollars and ADS in millions, except per ADS values and where otherwise noted) Current Unaffected ADS Price ADS Price Public Market Enterprise Value as of 1/21/20 as of 9/6/19 Closing ADS Price $10.12 $5.92 ADS Outstanding [1] 53.3 53.2 Dilutive ADS [1] 0.1 0.2 Fully Diluted ADS 53.3 53.4 Market Value of Equity $539.5 $316.4 Non-Controlling Interest [2] 1.6 1.6 Cash, Restricted Cash and Cash Equivalents [2] (86.8) (136.7) Short-Term Investments [2] (163.5) (80.2) Public Market Enterprise Value $290.8 $101.2 Current Unaffected ADS Price ADS Price Implied Multiples as of 1/21/20 as of 9/6/19 Enterprise Value / Adjusted EBITDA LTM [3] 2.1x 0.6x CY 2019E [4] 2.1x 0.7x CY 2020E [4] 2.0x 0.7x CY 2021E [4] 1.8x 0.6x Current Unaffected As of As of Price Per ADS [5] 1/21/20 9/6/19 10-Day Average $10.21 $5.73 1-Month Average $10.03 $5.92 3-Month Average $9.76 $8.12 6-Month Average $8.82 $12.74 52-Week High $21.81 $21.81 52-Week Low $5.51 $5.51 Other Market Information [5] 90-Day Average Daily Trading Value $2.6 $2.9 % of Market Value of Equity 0.48% 0.91% 90-Day Average Daily Trading Volume (in thousands) 268.7 253.9 % of ADSs Outstanding 0.50% 0.48% % of Public Float 1.55% 1.46% Selected Number of Analysts Covering the Company [6] 5 5 Total Public Float [7] 17.4 17.4 % of Total ADSs Outstanding 32.6% 32.6% Source: Public filings, Capital IQ, Bloomberg, Wall Street Equity Research. Note: The above information reflects the most recent publicly available information. 1. ADS price as of 9/6/2019 represents an equivalent of 53.2 million ADS outstanding and the net dilutive impact of an equivalent of 0.2 million ADS options outstanding based on the treasury method as of June 30, 2019. ADS price as of 1/21/2020 represents an equivalent of 53.3 million ADS outstanding and the net dilutive impact of an equivalent of 0.1 million ADS options outstanding based on the treasury method as of September 30, 2019. Per public filings and Company management, one ADS is equivalent to two Class A ordinary shares. 2. Per public filings’ balance sheets as of 9/30/2019 for ADS price as of 1/21/2019 and as of 6/30/2019 for unaffected ADS price as of 9/6/2019. 3. Per public filings for the period ended 9/30/2019 for ADS price as of 1/21/2019 and the period ended 6/30/2019 for unaffected ADS price as of 9/6/2019. 4. Implied 2019E, 2020E and 2021E multiples as of 1/21/20 and as of 9/6/2019 reflect most recent Wall Street Equity Research estimates as of 1/21/2020. 5. Per Capital IQ as of 1/21/2020. 6. Analyst coverage provided by Bank of America Merrill Lynch, Jefferies, Morgan Stanley, Citi and Credit Suisse. 7. Represents ADS held by shareholders other than Sohu, per Capital IQ and public filings. 20 Preliminary and Confidential | Subject to Further Review and Revision

Selected Changyou Public Market Observations Two-Year ADS Trading Activity Prior to Unaffected Date ADS Price Performance Prior to Unaffected Date (9/6/2017 – 9/7/2019) Changyou released its Q4 earnings results $45.00 and revenue and net income missed consensus estimates by 3.7% and 23.8%, respectively, due to weaker-than-expected $40.00 performance by Legacy TLBB $35.00 Payment of special dividend of $9.40 per ADS on 4/27/2018 Payment of special dividend of (“2018 Dividend”). Closing ADS $9.40 per ADS on 6/3/2019 $30.00 price on 4/27/2018 was $18.97, (“2019 Dividend”). Closing ADS representing a decrease of price on 6/3/2019 was $8.96, $10.53 from the prior day close. representing a decrease of $25.00 $9.40 from the prior day close. $20.00 $15.00 $10.00 $10.24 $8.00 $5.00 $0.00 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Changyou Adjusted Closing ADS Price [1] Changyou Closing ADS Price Unaffected 2-Year Average Adjusted Closing ADS Price Unaffected 1-Year Average Adjusted Closing ADS Price Source: Capital IQ, public filings. 1. Represents Changyou’s closing ADS price adjusted for the 2019 Dividend paid on 6/3/2019. Assumes the impact on stock price prior to the 2019 Dividend is equivalent to the dividend amount per ADS and that there is no benefit or loss from reinvestment of the dividend proceeds. Preliminary and Confidential | Subject to Further Review and Revision 21

Selected Changyou Public Market Observations Relative Total Stockholder Return Relative Total Return Since Unaffected Date (9/6/2019) 1-Year 2-Year 3-Year Total Return Total Return Total Return Since Proposal 9/6/18—9/6/19 9/6/17—9/6/19 9/6/16—9/6/19 (9/9/19 – 1/13/20) Changyou (10.5%) (54.6%) (27.4%) 200.0% MSCI China Index 2.7% (0.5%) 28.4% Received non-binding proposal S&P 500 Index 5.6% 25.7% 59.2% from Mr. Charles Zhang, chairman of the Company, for $42.10 per ADS on 5/22/2017, representing a 9% premium to the prior day close price 11.1% 150.0% 15.6% 16.7% 100.0% 50.0% Sep-16 Jan-17 May-17 Sep-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Changyou Index MSCI China Index S&P 500 Index Source: Bloomberg, public information. Preliminary and Confidential | Subject to Further Review and Revision 22

Selected Changyou Public Market Observations Historical Trading Activity Information From 2018 Dividend to 2019 Dividend (4/27/2018 – 5/31/2019) Total Volume: 48.0mm Average VWAP: $17.60 37.2% 18.0% 15.0% 11.7% 8.4% 7.8% 2.0% $12.00- $13.50- $15.00- $16.50- $18.00- $19.50- $21.00- $13.49 $14.99 $16.49 $17.99 $19.49 $20.99 $22.50 Source: Bloomberg. Note: Trading activity represented by daily volume-weighted average price (VWAP) amounts and volumes per Bloomberg. Preliminary and Confidential | Subject to Further Review and Revision 23

Selected Changyou Public Market Observations Historical Trading Activity Information From 2019 Dividend to Unaffected Date (6/3/2019 – 9/6/2019) Total Volume: 14.2 mm Average VWAP: $8.21 31.3% 18.9% 17.9% 18.2% 8.3% 5.5% $5.00- $6.00- $7.00- $8.00- $9.00- $10.00- $5.99 $6.99 $7.99 $8.99 $9.99 $11.00 Source: Bloomberg. Note: Trading activity represented by daily volume-weighted average price (VWAP) amounts and volumes per Bloomberg. Preliminary and Confidential | Subject to Further Review and Revision 24

Selected Changyou Public Market Observations Timeline and ADS Trading History ADS Price (USD) Volume (mm) $50.00 3.5 $45.00 C 3.0 $40.00 D Unaffected ADS Price as of 9/6/20191 = $5.92 $35.00 B 2.5 E $30.00 F 2.0 $25.00 A G H 1.5 $20.00 I $15.00 1.0 K $10.00 J $5.00 0.5 $0.00 0.0 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 ADS Close Price Unaffected ADS Close Price as of 9/6/2019 Selected Events Event Date Comment Changyou announced Q4 earnings results and its net profit came in A 2/21/2017 21.0% above expectations due to increased expense control. Changyou received a preliminary non-binding proposal from B 5/22/2017 Chairman Charles Zhang to acquire all of the outstanding ordinary shares of Changyou for $42.10 per ADS. Changyou announced the resignation of Jasmine Zhou as Chief C 7/31/2017 Financial Officer. Changyou released its Q4 earnings results and revenue and net income missed consensus estimates by 3.7% and 23.8%, D 1/29/2018 respectively, due to weaker-than-expected performance by Legacy TLBB. E 4/5/2018 Changyou declared a special cash dividend of $9.40 per ADS. Event Date Comment Changyou distributed the special cash dividend announced on April F 4/26/2018 5, 2018. Changyou announced the Q4 results of FY 2018 which was in line G 2/1/2019 with consensus estimates. H 4/29/2019 Changyou declared a special cash dividend of $9.40 per ADS. Changyou distributed the special cash dividend announced on April I 6/3/2019 29, 2019. Changyou’s indirect wholly-owned subsidiary Shanghai Jingmao J 7/23/2019 Culture Communication filed a voluntary petition in a court for relief under the bankruptcy laws of the PRC. Changyou received a preliminary non-binding proposal from K 9/9/2019 Sohu.com Limited to acquire all of the outstanding ordinary shares not already owned by Sohu for a purchase price of $10.00 per ADS. Source: Capital IQ, public information 1. Changyou announced the going private proposal following the close of the market on 9/6/2019. Preliminary and Confidential | Subject to Further Review and Revision

Selected Changyou Public Market Observations Selected Equity Research Analyst Commentary Date of Price Share Valuation Selected Analyst Recommendation 1 Commentary Report Target Price Approach Multiple “We expect Changyou game revenue and profit growth to lag peers’ due to its November Morgan 2020E Underweight $10.00 $9.48 weaker game pipeline. Its flagship mobile game, Legacy TLBB, is losing 3.0x 19, 2019 Stanley EV/EBITDA momentum, while the upcoming game pipeline is uncertain.” “We think as the flagship title in Chinese MMORPG genre, TLBB PC and Legacy mobile versions have both entered the mature stage in which core user community remains stable while monetization can be occasionally boosted by November Credit Neutral $10.00 $9.70 major content upgrades (e.g. new version, new system and new game-play) and 2020E P/E 5.0x 6, 2019 Suisse promotional activities (e.g. anniversary, rebate). We expect TLBB PC to shrink 7% QoQ due to difficult seasonality, while TLBB Mobile to remain largely the same QoQ in 3Q19.” “As the Company has started to launch new games, we expect total revenue to Bank of resume growth in 2020 despite the restructuring of the cinema ad business, November America NA NA $9.72 driven by continued growth of the core online game business. We model 16% NA NA 5, 2019 Merrill YoY growth in online game sales, assuming TLBB PC game to be largely stable Lynch and new mobile games to add incremental revenue.” “Company provided 4Q19 revenue guidance of USD100-110m, with the mid- PEG 0.7x points 17% ahead our estimates. Online games revenue is expected to reach November Jefferies Underperform $7.70 $9.63 US$95-105m vs our estimates at US$86m. Non-GAAP net income is expected 4, 2019 Implied 2019E to reach US$27-32m, ahead our estimates at US$17m. We estimate PC version of TLBB to decline by about 7% QoQ mainly due to reduced promotion.” & 2020E P/E 4.0x “For 4Q19, we model total revs of US$104.7mn, vs. guidance of US$100-110mn. This included online game revenue of US$101.7mn, vs. guidance of November Citi Neutral $10.00 $9.63 US$95-105mn. With DMD launching in 4Q/1Q20 (not in 4Q guidance), TLBB 2020E P/E 4.0x 4, 2019 Honor will support sequential games revs growth partially offset by the QoQ decline in TLBB PC. We model non-GAAP net income of US$31.5mn, comparing to guidance of US$27-32mn.” Prior to Proposal “(Changyou) has launched a number of different versions for TLBB including one PEG in PC and two versions in mobile, which we think another new franchise is 0.7x August 5, needed to drive revenue growth in 2020. For Legacy TLBB, we estimate it Jefferies Underperform $6.70 $7.53 Implied 2019E 2019 remains stable in revenue benefiting from regular content updates…The winding down of loss making cinema advertising business should help the overall & 2020E P/E 4.0x profitability of Changyou.” “Game revenue grew 8% YoY, the first positive growth since2Q18, driven by the August 5, Morgan strong operation of legacy titles. Opex was also kept under control. Despite 2019E Underweight $10.00 $7.53 3.0x 2019 Stanley 2019e P/E of 3.5x being around the trough level, we remain UW, due to EV/EBITDA Changyou’s weaker game pipeline compared with its peers’.: Source: Capital IQ, Wall Street research and public filings. 1. Reflects closing share price on the previous trading date before the date of report. Preliminary and Confidential | Subject to Further Review and Revision 26

Selected Changyou Public Market Observations Selected Equity Research Analyst Observations – Revenue (dollars in millions) Fiscal Year Ending December 31, Revenue 2019E 2020E 2021E Bank of America $452.0 $461.0 $519.0 Jefferies $459.0 $460.0 $468.0 Morgan Stanley $456.0 $398.0 $380.0 Citi $458.0 $470.0 $475.0 Credit Suisse $458.6 $399.6 NA Low $452.0 $398.0 $380.0 High $459.0 $470.0 $519.0 Median $458.0 $460.0 $471.5 Mean $456.7 $437.7 $460.5 Company Management Projections [1] $454.5 $371.1 $362.2 % of Median 99.2% 80.7% 76.8% Source: Bloomberg, Capital IQ, Wall Street research, public filings, Company management. Note: Company management projections do not include revenue from the Cinema advertising segment, which was terminated in 2019 due to significant losses in the past two fiscal years. 1. Reflects 2019 actuals provided by Company management and forward USD to RMB exchange rates of 7.01 and 7.00 for 2020E and 2021E, respectively. Preliminary and Confidential | Subject to Further Review and Revision

Selected Changyou Public Market Observations Selected Equity Research Analyst Observations – Adjusted EBITDA (dollars in millions) Fiscal Year Ending December 31, Adjusted EBITDA 2019E 2020E 2021E Bank of America $132.4 $199.0 $240.3 Margin % 29.3% 43.2% 46.3% Jefferies Estimates $130.0 $132.0 $130.0 Margin % 28.5% 33.2% 34.2% Morgan Stanley $157.0 $130.0 $118.0 Margin % 34.4% 32.7% 31.1% Citi $136.0 $160.0 $146.0 Margin % 29.7% 34.0% 30.7% Credit Suisse $139.4 $123.9 NA Margin % 30.4% 31.0% NA Low $130.0 $123.9 $118.0 High $157.0 $199.0 $240.3 Median $136.0 $132.0 $138.0 Mean $139.0 $149.0 $158.6 Company Management Projections [1] $183.7 $108.9 $77.4 % of Median 135.0% 82.5% 56.1% Margin % 40.8% 29.3% 21.4% Source: Bloomberg, Capital IQ, Wall Street research, public filings, Company management. Note: Company management projections do not include financial results from the Cinema advertising business as the business was wound down during the third quarter of 2019 as a result of Chinese courts granting a petition for bankruptcy relief. 1. Reflects 2019 actuals provided by Company management and forward USD to RMB exchange rates of 7.01 and 7.00 for 2020E and 2021E, respectively. Preliminary and Confidential | Subject to Further Review and Revision

Selected Changyou Public Market Observations Ownership Summary (shares and ADSs in millions) Current Class A Class B Total ADS Ownership % ADSs Held [1] Shares [1] + Shares [2] = Shares Equiv. [3] Economic [4] Voting [5] Unaffiliated Insider Holdings Sohu.com Limited 35.9 1.5 70.3 71.8 35.9 66.9% 95.2% Public Holdings Maso Capital Partners 3.0 6.0 — 6.0 3.0 5.6% 0.8% 16.8% BlueCrest Capital Management 2.8 5.6 — 5.6 2.8 5.3% 0.8% 15.9% Renaissance Technologies 1.2 2.5 — 2.5 1.2 2.3% 0.3% 7.0% Invesco 1.2 2.4 — 2.4 1.2 2.2% 0.3% 6.7% All Other 9.5 19.0 — 19.0 9.5 17.8% 2.6% 53.6% Total Ordinary Shares/ADSs [6] 53.6 37.0 70.3 107.2 53.6 100.0% 100.0% 100.0% Economic Ownership % Voting Ownership % All Other, 17.8% All Other, 4.8% Invesco, 2.2% Renaissance Technologies, 2.3% BlueCrest Capital Management, Sohu.com 5.3% Limited, 66.9% Maso Capital Sohu.com Partners, 5.6% Limited, 95.2% Source: Capital IQ, public filings. 1. All of the outstanding Class A shares are held by Bank of New York Mellon, the depository for the Company’s ADS program. The ownership shown above reflects the number of Class A units that corresponds to the number of ADSs held by each party (each ADS reflects two Class A shares). 2. Sohu owns the entirety of the outstanding Class B shares. Each Class B share is convertible into one Class A share, and is entitled to ten votes compared to one vote per share for Class A shares. 3. ADS equivalent is calculated as total shares divided by two, per Company management. 4. Class B shares are convertible 1:1 to Class A shares; as such, economic ownership % is calculated based on total shares held by each party. 5. Class B shares are entitled to 10 votes and Class A shares are entitled to one vote. 6. Based on shares as of 9/30/2019 per public filings. 29 Preliminary and Confidential | Subject to Further Review and Revision

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 4. Glossary 30 5. Disclaimer 33

Glossary of Terms Definition Description Adjusted EBIT Earnings Before Interest and Taxes, adjusted for certain non-recurring items Adjusted EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization, adjusted for certain other non-recurring items ADS American Depository Shares CAGR Compound Annual Growth Rate Current Ratio Current Assets / Current Liabilities CY Calendar Year E Estimated EV Enterprise Value FY Fiscal Year FYE Fiscal Year Ending Latest Twelve Months or the Most Recently Completed 12-Month Period for which Financial Information has been LTM Made Public NA Not Available NMF Not Meaningful Figure NTM Next Twelve Months PV Present Value QoQ Quarter-Over-Quarter RMB Chines Yuan (Renminbi) Preliminary and Confidential | Subject to Further Review and Revision 31

Glossary of Terms Definition Description USD United States Dollar VWAP Volume-weighted Average Price WACC Weighted Average Cost of Capital YoY Year-Over-Year

Page 1. Executive Summary 3 2. Financial Analyses 9 3. Appendices 16 4. Glossary 30 5. Disclaimer 33

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