performance fell sharply in recent years, after transformation frustrated, Chen about the present situation of renren also started “dissatisfaction” strategy is to divest non-core business.
renren CEO Chen said in an interview with the Wall Street journal on Monday, the company plans to sell some non-core business, and to improve profitability, and consider the Hong Kong investment in the United States and China to expand potential opportunities.
this may verify the rumors the company to 56 net sale. Recently, around the poor development of 56 video business, many rumors, mango TV, love, art, and sohu video are approached. The latest news is that sohu bid $12.9 million for video program. However, these are not for trade both parties confirmed.
if the prices are correct, this also is far lower than renren’s bid of $80 million in 2011. At that time, everyone plan through its acquisition of 56 business to supplement the renren and form synergies, and asked for this com co-founder and CEO of skillful management will join everyone served as vice President, continue to responsible for 56 business operations. After 3 years in the past, instead of 56 performance not only failed to respond to continue a downward trend, and staff turnover. The other according to reports, skillful coasting already.
about renren, Chen said, “according to the existing model, our company is very difficult to make money. We will conduct a thorough transformation, change our business model.” However, he did not disclose to spin off what specific business. Before this, everyone has sold group-buying business network of glutinous rice to baidu.
Chen revealed that the company may be more strategic investment, and hope that by investing in creative entrepreneurial firms to further promote the company growth. Everyone also consider investing China’s Hong Kong start-up, but Chen did not give more details. He said, the company set aside some $800 million reserves of strategic investment.
or this mean all will shift from the original social attributes for an investment company? The $800 million fund size is comparable with a VC institution.
if so, this also is not a surprise, because the industry has long been known as Chen, is master of capital to play with. Despite all the firm’s decline in recent years, Chen is successively by investing Vipshop, snowball network project implementation such as appreciation. In the interview, Chen said, is plotting a Hong Kong investment enterprise deal.
not only at home, and everyone has been looking for investment opportunities overseas, and as part of the strategy, the company has launched some investment in the United States. About half a year ago, for example, the company is the social media applications to the United States Yik Yak investment of $1 million. In may this year, and everyone who brought in the United States real estate the raised platform Fundrise $31 million in financing. The company or a low-cost student loans start-up Social Finance’s largest shareholder.