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Renren buys video-sharing 56.com for $80m

Updated: 2011-09-27 14:42

(Xinhua)

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BEIJING -- Chinese social networking company Renren Inc announced on Sept 27 that it will buy 56.com, an online video-sharing site in China, for $80 million.

The takeover of 56.com, a website where users can upload, view and share videos, marked the first major acquisition by Renren since it went public on the New York Stock Exchange in May.

The deal is expected to completed in the fourth quarter, Renren said in a statement.

Renren is one of China's largest social-networking websites.

According to the agreement, 56.com's co-founder and chief executive officer, Zhou Juan, will join Renren's management team and serve as the vice president.

The takeover of 56.com will help the company "further meet user needs of recording and sharing their lives through video format" on its social network, Joseph Chen Yizhou, Chairman of Renren, said in the statement.

In New York, the share price of Renren rose 1.52 percent to close at $5.35 before the deal was announced.

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