Renren (NYSE: RENN), often called the Facebook of China, appears to have purchased up-and-coming video sharing site 56.com for a bargain price in its first major M&A, casting a spotlight on the growing pressure that young Chinese web firms are facing in the current Internet bubble. The Renren news, which saw it buy money-losing 56.com for a modest $80 million, is just the latest sign of a Chinese Internet under duress, with media reporting new mass layoffs at two additional firms, B2B marketplace operator 
DHGate and group buying site Groupon.cn, which is no relation to US industry leader Groupon. Let’s take a look at 56.com first. (company announcement) According to industry data, 56.com has about 66 million unique visitors and nearly 1 billion page views a month. Video sharing leader Youku (NYSE: YOKU) has about twice as many unique visitors, and 4 times as many page views. And yet even after the latest market sell-off, Yoku still has a market cap of $2.3 billion, or nearly 30 times what Renren paid for 56.com. Obviously traffic alone isn’t the only way to determine a company’s value, but in the Internet world it’s one of the best measures of its potential. Combine that with the fact that 56.com lost a relatively modest $500,000 in the second quarter, and this looks like a very good deal for Renren. Now let’s look at the latest layoffs, which again point to the incredible pressure that money-losing web firms are facing to quickly turn a profit or risk being forced to close or sell themselves at bargain prices to companies like Renren. Domestic media are citing a company employee in saying that DHGate, has laid off more than half of its technology and marketing staff, reportedly under pressure from major investor Kleiner Perkins Caufield & Byers which has cut off additional funding until the company can show some better financials. (English article) That news comes as domestic media are also reporting that Gaopeng.cn has laid off more than half of its staff (Chinese article), not long after Gaopeng, the group buying joint venture between US-based Groupon and China Internet leader Tencent (HKEx: 700) made similar layoffs. Look for more of these mass layoffs, plus some sales of promising but money-losing web firms like 56.com at bargain prices in the months ahead as China’s Internet bubble works its way through a painful correction.
Bottom line: Renren’s purchase of a solid video sharing site at a bargain price, coupled with mass layoffs at two other web firms, are the latest signs of distress in China’s Internet bubble.
人人网(RENN.N)似已低价收购视频分享网站56网，这是人人网第一笔大规模并购案，凸显中国年轻的网络公司在目前互联网泡沫时代所面临的压力。人人网斥资8,000万美元，收购目前亏损的56网，是中国互联网业承压的最新迹象。另有媒体报导，B2B小额外贸批发平台敦煌网（DHGate）和团购网团宝网（Groupon.cn）将进行新一轮大规模裁员，後者与美国Groupon并无关联。我们先来看看56网。行业数据显示，56网约有6,600万名独立访客，每月页面浏览量近10亿次。视频分享领军企业优酷网(YOKU.O)这两个数据约为 56网的两倍和四倍。即使经历了近期的市场抛售，优酷网市值仍有23亿美元，是人人网收购56网价格的近30倍。流量显然不是决定公司价值的唯一依据，但 在互联网领域，这是衡量一个公司潜力的最佳标准之一。再加上56网第二季度亏损50万美元，收购56网对人人网来说是一笔不错的交易。再看看近期的裁员事件。这再次表明，亏损的网络公司面临诸多压力，要麽迅速实现盈利或被迫倒闭，要麽以低价出售给人人网等公司。国内媒体援引一名企业雇员 的说法称，敦煌网技术和营销部裁员逾半，原因是主要投资方Kleiner Perkins Caufield & Byers（KPCB）削减额外资金，除非敦煌网财务状况有所改善。国内媒体还报导称，继高朋网裁员不久後，团宝网也裁员逾50%。随着中国互联网业经历 痛苦修正，预计未来数月还将有更多大规模裁员，以及前景看好但目前亏损的企业被出售。
一句话：人人网低价购买视频分享网站56网，敦煌网和团宝网大规模裁员，这些都是中国互联网陷入困境的最新迹象。
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