Renren announces 80 million U.S. dollars to buy China video-sharing website 56

Abstract: September 27 Morning News, Nyse:renn announced today will be 80 million U.S. dollars wholly-owned Chinese video sharing website 56 network (www.56.com), the transaction will be completed in the fourth quarter of 2011. Through this acquisition, 56 net will become the wholly-owned company of everyone

September 27 Morning News, Nyse:renn announced today will be 80 million U.S. dollars wholly-owned Chinese video-sharing website 56 network (www.56.com), the deal will be completed in the fourth quarter of 2011. Through this acquisition, 56 network will become a wholly owned subsidiary of the company, 56 Network co-founder and CEO Zhou Juan (Weibo) will join the management of everyone as Vice president. This is the first major strategic takeover since the listing of all companies.

56 Network was founded in 2005, is a Chinese video-sharing website for Internet users to provide video upload, storage and sharing services. Most of the videos on the site were created by grassroots performers, amateur video groups or video enthusiasts, and users create and share many of the best video content through a computer or a variety of mobile devices.

Chen, Chairman and CEO of Renren, said: "The need for Internet users to communicate and share on social networking sites is no longer limited to words and images, and users are increasingly interested in sharing their original videos and communicating with their friends through these original videos." A 56-net acquisition can help everyone's users make it easier to record and share their lives on social networks. "Chen also said," compared to those who buy professional content-oriented video sites, the 56 network has been trying to provide users with high-quality original video sharing services, and has a large number of users keen to create original video. After the completion of the acquisition, 56 network and Renren will be closely and close cooperation, can better meet the needs of our users, and further improve the 56 network and Renren user activity and Web site traffic, but also for our customers to provide a richer form of advertising. ”

"We are delighted to be a member of the corporate family," said Zhou Juan, co-founder and CEO of the 56 network. The strong user base and the successful experience and resources of everyone in social networks, mobile Internet, and social e-business can give a lot of support to 56 networks to help us further enhance our attractiveness to our customers. ”

In this acquisition, investment bank Huaxing Capital as the exclusive financial advisor to the 56 net. Huaxing Capital focuses on providing all kinds of financial consultancy services to China's fast-growing entrepreneurial enterprises.