Renren Announces Acquisition of Online Video Site 56.com

2011-09-27 00:00:00

BEIJING, September 27, 2011 -- Renren Inc. (NYSE: RENN) (“Renren” or the “Company”), China’s leading real-name social networking internet platform, announced today that it has entered into a definitive agreement to acquire 100% of 56.com, a leading user generated content (UGC) online video sharing site in China. The consideration for this acquisition will be US$80 million in cash. The acquisition is expected to be completed in the fourth quarter of 2011, subject to customary closing conditions. 

Founded in 2005, 56.com is a leading online video-sharing site where users can upload, view and share videos. A majority of the videos offered on the site is created by users, consisting of content mix from performing artists, amateur groups, and video enthusiasts. 

“UGC videos have been increasingly popular amongst SNS users as natural extensions of communication and content sharing. The acquisition of 56.com will help Renren further meet user needs of recording and sharing their lives through video format on our social network,” commented Joseph Chen, Chairman and Chief Executive Officer of Renren. “56.com’s consistent focus on providing video sharing services versus professional content has resulted in a strong following of UGC-centric users, which complements our user’s social behavior. We expect that the synergies and cross marketing opportunities between 56.com and Renren.com communities will further drive growth in user engagement, traffic, and advertising solutions to clients.”

“We are excited to become part of the Renren family,” said Ms. Juan Zhou, Co-Founder and Chief Executive Officer of 56.com. “Given its user base and broad offerings in SNS, mobile, and social commerce, Renren’s platform will provide deeper resources and support to enhance 56.com’s attractiveness to users.” Ms. Juan Zhou shall join Renren’s management team as Vice President.