Chinese internet portal Sohu.com (SOHU) has formally entered the entertainment sector by setting up a wholly-owned entertainment company, Sohu Entertainment and Culture Media Co., Ltd.

Charles Zhang, CEO of Sohu.com, works as its general manager, and Deng Ye, a supervisor from the Entertainment Department of Sohu.com, has taken the position of deputy general manager.

Although the registered capital of the new company has not been disclosed, Zhang admits that his company has never made such a large investment on a side business like this one.

Zhang says he does not expect this new company, whose operation and budget will be separate from that of Sohu.com, to bring in much cash or profit, but he hopes that it will help them gain experience and added value in development of entertainment products.

The new company will initially have 100 staff.