China's Renren Inc. announced the sale of its social networking service (SNS) assets on Wednesday for a total of 20 million U.S. dollars plus new shares worth 40 million U.S. dollars.
Founded in 2005, Renren Inc. is a Beijing-based company operating the Facebook-style SNS portal www.renren.com as well as second-hand car business and software service business. This company floated its shares at the New York Stock Exchange (NYSE) in May 2011.
The SNS portal www.renren.com is a platform popular among young people in China, especially those in universities, where they share videos, images, live streams and entertainment content online.
According to Renren Inc’s announcement, its wholly-owned subsidiary Beijing Qianxiang Wangjing Technology Development Co., Ltd. has agreed to hand over the assets and business of the above SNS portal to a Chinese buyer named Beijing Infinities Interactive Media Co., Ltd. for 20 million U.S. dollars.
In addition to the above cash payment, the buyer’s parent company Infinities Technology (Cayman) Holding Limited, based in Cayman Islands with an estimated valuation of 700 million U.S. dollars, will issue shares to Renren. Inc worth 40 million U.S. dollars.
The announcement on Wednesday also disclosed that Oak Pacific Holdings, a minority shareholder of Beijing Qianxiang Wangjing Technology Development Co., is controlled by Renren Inc’s chairman and CEO Joseph Chen, and executive director and Chief Operating Officer James Jian Liu.
After the disposal of its SNS assets, Renren Inc. intends to remain at the NYSE, said the announcement. In the future, the company will focus on its second-hand car business in China and its trip-planning app Trucker Path and Software as a Service (SaaS) business in the U.S.
Founded in 2005, Renren Inc. is a Beijing-based company operating the Facebook-style SNS portal www.renren.com as well as second-hand car business and software service business. This company floated its shares at the New York Stock Exchange (NYSE) in May 2011.
The SNS portal www.renren.com is a platform popular among young people in China, especially those in universities, where they share videos, images, live streams and entertainment content online.
According to Renren Inc’s announcement, its wholly-owned subsidiary Beijing Qianxiang Wangjing Technology Development Co., Ltd. has agreed to hand over the assets and business of the above SNS portal to a Chinese buyer named Beijing Infinities Interactive Media Co., Ltd. for 20 million U.S. dollars.
In addition to the above cash payment, the buyer’s parent company Infinities Technology (Cayman) Holding Limited, based in Cayman Islands with an estimated valuation of 700 million U.S. dollars, will issue shares to Renren. Inc worth 40 million U.S. dollars.
The announcement on Wednesday also disclosed that Oak Pacific Holdings, a minority shareholder of Beijing Qianxiang Wangjing Technology Development Co., is controlled by Renren Inc’s chairman and CEO Joseph Chen, and executive director and Chief Operating Officer James Jian Liu.
After the disposal of its SNS assets, Renren Inc. intends to remain at the NYSE, said the announcement. In the future, the company will focus on its second-hand car business in China and its trip-planning app Trucker Path and Software as a Service (SaaS) business in the U.S.
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