By Rita Liao
Renren, which was once heralded as the ‘Facebook of China’ and later became China’s answer to MySpace after falling out of fashion among its core young users, is selling its social networking business.
Renren’s parent company Beijing Qianxiang Wangjing has agreed to sell all tangible and intangible assets of renren.com to Beijing Infinities Interactive Media, according to a statement. As part of the deal, Qianxiang will receive $40 million worth of shares in Beijing Infinities, a $700 million firm that owns one of China’s major IT news sites DoNews.
“I am happy to find a home for renren.com,” says Renren’s chairman and chief executive officer Joseph Chen in the statement.
The social network won’t be foreign to its new home. On the list of the buyer’s shareholders is Oak Pacific Holdings, which Chen and James Liu, Renren’s executive director and chief operating officer, control.
Once a highflyer in China’s PC era, Renren’s prospects have faded as it fell behind peers like Tencent and Weibo in the mobile space. Its stocks hover around $2 today, compared with its spectacular moment at $84 when it debuted on the New York Stock Exchange in 2011. That …read more
Source: Tech Crunch