Chen: Consider acquiring mobile games and group buying companies

"TechWeb reported September 4," Chen, CEO of Renren, said in an interview with foreign media that everyone was considering a long-term revenue boost beyond advertising, considering acquiring mobile games and buying companies to make a profit.

In the past two quarters, Renren's performance has been poor as a result of slower advertising revenue growth and the growth of group buying and huge spending on the mobile business. Everyone reported a 24.9 million-dollar loss, with a revenue of $44.8 million trillion, according to everyone's second-quarter 2012 earnings report.

Everyone is changing the business model to consider long-term revenue growth beyond advertising, says Chen, CEO of Renren. He argues that paid services such as E-commerce and gaming will be the backbone of a vibrant social network. Therefore, Chen is promoting the diversification of the source of revenue for all, the company already has games, video and group buying and other diversified business.

In addition, in the mobile business, Chen said, although the current mobile business to everyone's revenue contribution is only 10%, but the mobile gaming business has brought cash flow, and sticky rice network mobile services also have good prospects. He says 45% of all employees work in the mobile business, and he himself has spent half of the last two quarters in the company's mobile business.

Group buying field, Chen said, glutinous Rice net is about to achieve profitability, the current glutinous rice net loss is shrinking, the next quarter is expected to store sales of more than 100 million U.S. dollars. Chen that many of the Chinese group buying market competitors have fallen behind, everyone is considering acquisitions, but will carefully select the acquisition target, group buying or mobile gaming companies will be the focus of the acquisition. (Ningmeng)