All power dealers and mobile gaming businesses want to start acquisitions

News and Information September 4, according to foreign media reports, to become China's Facebook Renren is now exerting a mobile internet business, the company is still looking for the right acquisition opportunities.

Despite having never competed with Facebook, everyone still faces challenges from Weibo, and advertisers have doubts about the launch of social networking sites, all of which make everyone's development face a lot of difficulties.

Now everyone is changing their business model. Chen, the company's chief executive, said in an interview that he was looking for a long-term source of income other than advertising.

"Paid services such as E-commerce and gaming are seen as the main support for social networking sites," Chen said. Following this train of thought, Chen Yi-Zhou has been thinking about diversifying everyone's income: The site starts running games, online video and group buying, and a combination of services makes the site less like Facebook and more like another big Chinese rival, Tencent.

Everyone has been warning about fierce competition in China's social networking market since May 2011, when it was listed in the US. The company's first two-quarter results were softened by a slowdown in advertising revenue and increased investment in group buying and mobile internet operations. In the second quarter of June 30 this year, everyone had a revenue of $44.8 million and a net loss of $24.9 million.

Chen says the key to growth for everyone is research and development. He pointed out that in order to "occupy the territory" in the barbaric mobile internet market, the company's research and development investment in the second quarter amounted to $17.8 million, almost twice times more than the same period last year. These funds are partly used to recruit engineers to develop mobile apps.

45% of the company's employees are engaged in work related to the mobile phone business. Chen said the business was his focus in the last two quarters, taking up half of his time.

Although only 10% of the revenue comes from mobile services, Chen says mobile gaming is good for cash, and the mobile phone, which deals with glutinous rice nets, looks pretty well. With the advent of premium-quality mobile payment tools, this part of the business will become increasingly important, Chen said.

The glut of companies flocking to the Chinese group buying market over the past two years has led to a fierce price war that has made it difficult for these companies to make a profit.

"When we rolled the sticky rice net two years ago, I said I wanted to be a leader in the industry but not the first," Chen said. There have been many competitors in the market, but they are not rational, the price of being a boss is too high. ”

However, he also said that competitors are now "precarious", the opposite view of glutinous rice is on the way to profitability. Losses in this sector will be narrowed further in the next quarter, and sales of total goods will grow steadily, exceeding 100 million trillion dollars.

Chen said the company was looking for acquisitions but would be "picky". He stressed that the company would consider acquisitions in the field of group buying and mobile gaming.

Chen also pointed out that, relative to Sina Weibo, the company's business policy risk is less. Because everyone users are mostly just sharing pictures, and communicate with friends.

Everyone is the predecessor of the university student users of the "net". However, with the company's business out of the campus, it also immediately renamed to everyone, in order to highlight its wider appeal.

Despite the growth of less than Sina Weibo, everyone's second-quarter increase in user numbers remains strong. Renren, which had 45 million independent visitors in June, grew 31% from a year earlier. Registered users also increased from 124 million in the same period last year to 162 million.

Still, Chen says Weibo makes it harder for everyone to attract high income users, especially those who are older.

"Our social network, a rival, happy Net, has been because of its users and Weibo overlap." "he said.