A fusion of social and video in China… Renren, the social network which listed on Wall Street this spring, is acquiring the user-uploaded video site 56.com for $80 million.
Sequoia Capital, Steamboat Ventures, CID Group and SIG were investors.
“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,” Renren CEO Joseph Chen says.
“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.”
56.com has been identified amongst the crop of Chinese video sites facing off against each other. It operates in the same UGC space as Tudou, but Youku has been moving away from UGC and today premium content. Both Tudou and Youku recently floated on Wall Street.
Founded in 2005, 56.com had been mooted to seek an IPO of its own by 2012, but has now taken a different course.
http://player.56.com/v_NjI5OTE2NDY.swf