10 years Hedong, 10 years Hexi! Who buys the Renren?

In the memory of Chinese internet people, Renren is a meaningful company. According to the age calculation, now the backbone of the internet has almost all in all the online, with the original Thousand Oak Group Vice President, Renren head Xu Chang said is: "And You (Chen) with the Times is Lei, Zhou, Ma Yun, Li." ”

Compared with the above several scenery, Chen is troublesome, the media one-sided singing decline so that Renren does not seem to have a development prospects. But know that the company that has successfully listed in the U.S. also has more than 50 million active campus users (which can be compared to a total of 26.48 million Chinese college students in 2013), which is the most valuable asset for any firm.

While the industry background is the integration of the Internet giants mergers and acquisitions, there are data shows that in the 2013, China's broad internet industry, mergers and acquisitions traded 317, an increase of 100.6%. In the first half of 2014, Tencent Investment public comments, Jing Dong and 58 with the city, Ali injected into Sina Weibo, China number of media, Youku, Hang Seng Electronics and UC ...

Obviously Renren by virtue of the cohesion in the student community in this wave of mergers and acquisitions is of great value, then who will become a potential buyer of Renren?

At the very least, Chen may have a brighter future if it sells Renren. The most famous three Hubei people in China's Internet circle: Lei, Zhou, Chen are very good at Capital operation, Lei is beats, through investment to build the famous Lei department.

It is not impossible to lei the Chen investment ability into the future after leaving Jinshan.

Once the good

The latest news is that Du Yue, the Vice-President for strategic development, said in an email that Chen was very negative, and that a few days earlier Chen had clashed with another executive at the company, with news that both executives had left the office. Before that, executives at all companies had been shaken. Earlier, CMO Bill, vice president for wireless operations Wu Jian left, and the person in charge of the game Hochang last year after the absence of sick leave, there is even news that several senior executives will leave this month.

Behind the unrest is a decline in everyone's performance. Renren's total net revenue in the first quarter of this year was $24.9 million, down 39.9% from a year earlier, with net revenues of $12.2 million, down 17.3% from a year earlier, and a net revenue of $12.7 million, down 52.5% from a year earlier, and a gross profit of 8.7 million dollars, Down 65.2% from a year earlier ... An embarrassing fact is that after the listing everyone except financial investment benefits, not a quarterly profit.

Just a few years ago, everyone looked beautiful.

Everyone before the listing of the main body includes four major business: Renren, glutinous rice nets, everyone games and Jingwei Network, the four major business corresponding to Facebook, Groupon, Zynga, LinkedIn. Some media said Chen a boat to create a big social e-commerce industry chain, the concept and hundreds of millions of users so that everyone once market value as high as 5 billion dollars.

Today, everyone's market capitalisation is less than 1.2 billion dollars.

Chen put this reason to the rapid development of social tools, according to his description: He this wave is the most bitter people, did not catch the door of the good times, just touch the dividend of SNS, wireless pedal nose, so had to fight again.

This naturally is a good excuse, 2011 after the rapid development of micro-BO, micro-letter, QQ and other social tools of the competition to make the living environment of Renren become worse. But why did Lei become the only pig that found the tuyere? There are comments that: "Accounting Tube Company, the last is to keep looking at making money does not make money, so earn are now, the future has been deficient." ”

Luckily everyone has more than 50 million active users, which is not a small number for any company.

According to the understanding of NetEase technology, everyone in a lot of university coverage is very high, a lot of students are not too familiar with or will be directly to Renren's account. There are students to netease technology to choose everyone rather than micro-credit or micro-bo is the reason for and micro-bo compared to the relative purity of the Internet in everyone, is a real name, and micro-letter is very familiar with the people, mutual understanding can add friends. At present, a lot of college classes in everyone opened a group, in school view, this is part of the emotional construction.

After renaming everyone from school, everyone finally began to pick up the campus strategy last year, and on the latest version of Renren's mobile client, he reopened the young group as the core user of Renren.

Who wants everybody?

In the wholly-owned acquisition of Glutinous Rice before, there has been rumors that Baidu will buy glutinous rice network to test everyone's bottom line, the ultimate goal is to acquire everyone in addition to the game other business. The rumor was then Chen in everyone's Jingwei online with a limerick rumor: "Everyone is an analyst, Fry first to fry news." Believe rumors rumor is not reliable, better go back to fry A shares! But in today's internet environment, everyone is indeed an acquired good quality. First of all, Renren has become a social backbone of the students, this relatively high degree of customer base is the Internet Enterprise Transformation Mobile Internet is necessarily optimistic about the user; second, everyone still does not get rid of the fate of losses, the current stock price and cash does not match, if the acquisition in the price is more appropriate; The last is its fundamental trader Chen has repeatedly demonstrated its beats, in the capital market, the power of manoeuvre, everyone's product is not its good.

In the mobile internet age, social networking is still the best bargaining chip in the hands of the internet giant, which is best for three big sellers in the market.

The preferred nature is already in the glutinous rice to reach a good agreement on the purchase of Baidu. Search is no longer a single information lookup, Baidu, Google, Facebook and so on have put social information into the search structure, users through search engines, but also to expand social life. Baidu in the search field is a well-deserved overlord, but in the social field of action seems a little vague, and in the acquisition of everyone, Baidu's mobile map, 91 of assistants and other projects will form a good complementary.

In addition to Baidu, Alibaba may also become a potential buyer for everyone, e-commerce and social nature has a natural fit, Ali is in the pre-IPO investment in micro-Bo, Tango, MO, and on the line of the lake, contacts, are its social field layout. After acquiring everyone, everyone can also become another exporter of their electric-business empire.

Compared with the two giants, Tencent's demand for everyone is not high. At the end of last year, Chen also wrote that Renren would compete with Tencent in the transition to social communication.

A natural question is, how much is everyone worth now?

At present everyone's market value is about 1.1 billion US dollars, the stock of Chen hands is about 30%, which means that if there are 3 to 400 million dollars can become a big shareholder of everyone. This is not a huge number for Giants. Chen has also said that if the price is right, selling everyone is not an impossible choice.

Investment Dreams

After selling everyone, what can Chen do? Perhaps it is a good choice to imitate the lei that left Jinshan.

In everyone's earnings, Chen a boat has shown a strong ability to invest. 2011 Years of the Four Seasons for the sale of Art Dragon stock for a one-time profit of 50.9 million U.S. dollars, direct drive for all 2011 of the year's earnings. Everyone in the 2012 no longer had a large return on investment, and everyone plunged into a total loss, with a net loss of $75 million a year. In the first quarter of last year, everyone's profit was a stock investment in the only commodities meeting.

There are comments jokingly, everyone is profit to pay attention to Chen a boat bought what stock.

In a dismal 2014 first-quarter earnings, the company achieved a short-term investment gain of $27.1 million, mainly from the sale of securities, which was $15.1 million a year earlier. Market sources pointed out that the company mainly by selling Qihoo 360 shares to achieve investment income.

Unlike other internet bosses, Chen is a CEO with a strong ROI view: "As long as there's evidence that this thing is worth something, I bet!" In the reporter once with Chen a boat exchanges, rarely can hear his experience of management, the specific business of the market prospects planning. He is more accustomed to look at his company with financial returns, which may have something to do with Chen's failure, "after a loss, it will be more cautious because of fear of failure." One lesson is that there must be enough money in the purse, and the second is not to blindly follow the crowd. ”

In fact, everyone is not so bad now, account for hundreds of millions of dollars, Chen a boat more than 50% of the vote, continue to maintain independent operation and look for possible opportunities is certainly a good living. But this may be what rivals want everyone to do, and instead of spending money to buy it, it is better to continue to suppress more appropriate opportunities for everyone.

But for Chen, who specializes in capital operations and is more interested in capital than products, it may be a good time to get the best of it.

"Don't underestimate Chen, he is the survivor of two internet tide, even if hit to the bottom, he can climb out." A friend of Chen's boat said. In Chen Yi Zhou's Thousand oak times will keep flashing "The capital Operation Master" and "the Enterprise manages low energy" two labels. Perhaps a boat from the management post will find a better sky.