Pamela de Butler
Jun. 10, 2015, 12:48 PM
- Continuing a widespread trend of going-private offers for U.S.-traded Chinese tech firms, Renren (NYSE:RENN) chairman/CEO Joseph Chen and COO James Liu have offered to buy the company for $4.20/share in cash - a modest $0.09/share premium to Tuesday's close.
- Chen and Liu currently own 32% of Renren's shares, and control 49% of its voting power. They intend to finance the purchase with "a combination of debt and equity capital, and rollover equity in the Company." As is the norm, Renren's board plans to form a committee to weigh the proposal.
- The Street isn't impressed with the offer price. Renren, buoyed by a major Chinese Internet stock run-up and enthusiasm about the company's online lending investment portfolio, was up 64% YTD going into today.
Nov. 4, 2014, 1:04 PM
- China's DoNews reports (citing an internal e-mail) Sohu (SOHU -1%) has reached a deal to acquire Renren's (RENN) 56.com video site, and plans to merge it with Sohu Video. Details will reportedly be provided next week.
- A July report stating Renren is selling 56.com Chinese video site Mango TV didn't pan out. However, Renren (having a rough time over the last two years) has unloaded its Nuomi daily deals site to Baidu, and has generally been looking to cut costs.
- Acquiring 56.com would give Sohu more scale as it squares off against Baidu, Youku, and Tencent in a very competitive Chinese online/mobile video market. Shares are off slightly after rallying yesterday (along with those of gaming unit Changyou) post-earnings.
Jul. 30, 2014, 1:58 PM
- Marbridge Consulting reports Renren (RENN +1.2%) plans to sell its 56.com video site to fellow Chinese online video provider Mango TV, with a formal announcement due in August or September.
- Note: While some of Marbridge's reports have panned out, others have been shot down.
- Renren has already unloaded its Nuomi daily deals site to Baidu, as it tries to narrow its focus amid nosediving gaming revenue and declining social network traffic.
Jan. 24, 2014, 10:59 AM
- Five months after Baidu (BIDU -0.4%) acquired a 59% stake in Chinese daily deals/group-buying site Nuomi from Renren (RENN +2.2%) for $160M, Renren says it has reached a deal to sell its remaining stake in Nuomi to Baidu. Terms are undisclosed. (PR)
- Following Baidu's initial purchase, Nuomi's CEO wrote a memo stating his company is looking to eventually go public. The company has been estimated to hold an 11.6% share of the Chinese group-buying market (#4 overall).
- Nuomi is just one of several acquisitions Baidu has made over the last two years to grow the reach of its Web/mobile empire.
Aug. 23, 2013, 9:59 AM
- Beaten-down Renren (RENN +7.6%) has jumped on the news; high-flying Baidu (BIDU -0.5%) is close to breakeven. The all-cash deal is expected to close in Q4. (PR)
- Baidu has been busy expanding the scope of its empire via M&A. Other recent acquisitions include top Chinese Android app store 91 Wireless ($1.9B), and video sites iQiyi and PPS.
- Nuomi, estimated to have an 11.6% share of the Chinese group-buying market (per local research firm tuan800), has a long history of posting losses. It had Q2 revenue of $6.2M (+69% Y/Y), and 3.8M active paying users during the quarter. 30% of its Q2 transactions came via mobile.
- Baidu's ability to promote Nuomi to its massive user base should help grow the site's paid user count, and in doing so increase its appeal to merchant partners. Nuomi is the Chinese group-buying market's 4th-largest player, behind Meituan (estimated 36.5% share), Dazhong (24.1%), and 55tuan (12.1%).
- The deal allows struggling Renren to focus on its online/mobile gaming and social networking ops going forward.
- Marbridge Consulting reported of Baidu's interest in Nuomi 10 days ago.
Aug. 13, 2013, 11:37 AM
- An "industry source" tells Marbridge Consulting Baidu (BIDU +1.5%) has been talking with Renren (RENN +6.5%) for two months about buying a controlling stake in the latter's Nuomi daily deals unit. However, Nuomi is said to prefer a minority investment.
- The source adds Baidu has approached another daily deals site, Dianping, about a possible acquisition, while another source states Baidu is holding investment talks with the own of local search engine Ding Ding Map (30%-owned by Alibaba).
- Baidu has been in an acquisitive mood lately, snapping up online video site PPS and top Chinese Android app distributor 91 Wireless for hefty sums.
- Nuomi's revenue rose 102% Y/Y in Q1, but still only totaled $5.1M. Active paying uses amounted to 3.1M (+69% Y/Y). The business has been a drag on Renren's bottom line for some time; it hurt the company's Q1 net profit by $7.9M.
- Renren is rallying thanks to the report, and perhaps also due to Sina's Q2 beat, which was driven by surging Weibo revenue. Renren's own Q2 results arrive tomorrow.
Jul. 29, 2013, 8:31 AM
- Shanda Games (GAME) -7% premarket after agreeing to acquire affiliates providing user and payment platform services from its parent company Shanda Interactive Entertainment for a combined $811.5M.
- GAME says the moves will strengthen its mobile strategy.
- Other players in Chinese gaming: SOHU, RENN, NTES, PWRD, GA.
Nov. 21, 2011, 7:08 AM
Jun. 13, 2011, 1:53 PM
Renren (RENN -10%) tanks after Deutsche Bank (DB) - lead underwriter for its IPO just five weeks ago - initiates coverage with a hold rating and a price target 40% below the offering price. Under-cutting one of its own deals like this should put them "in the box" with institutional clients for quite a while.| Jun. 13, 2011, 1:53 PM | 7 Comments