Tag Archives: Renren

Renren Inc latest company news
Renren Inc. (NYSE: RENN) latest Business and Financial News , by former Reuters journalist Doug Young based in China.

INTERNET: E-House, Leju Profits Shrivel, Renren Shrinks

Bottom line: Shares of E-House and Leju are likely to trade flat to downward over the next year due to continuing pressure on China’s real estate market, while Renren is likely to get bought out over that period.

Property downturn puts pressure on Leju, E-House

The latest earnings from 2 of China’s 3 top listed online real estate firms reflect the challenges facing the sector, with soaring costs undermining profits at both E-House (NYSE: EJ) and its affiliated Leju (Nasdaq: LEJU). Meantime, a separate earnings report from fast-fading social networking site Renren (NYSE: RENN) shows the former Internet superstar is fast becoming worthless as it sells off assets and its core SNS business shrinks. I expect the end will come soon for Renren, probably in the next 12 months, since the company’s largest asset now is its big cash pot that could attract a buyer who simply wants the money. Read Full Post…

NEWS DIGEST: February 7-9, 2015

The following press releases and media reports about Chinese companies were carried on February 7-9. To view a full article or story, click on the link next to the headline.

  • China Says Will Protect US Firms’ Interests, Amid New Cybersecurity Rules (English article)
  • SEC, Big Four Accounting Firms in China Settle Dispute (English article)
  • Renren (NYSE: RENN) Leads $110 Mln Investment in Used Car Sales Platform Cheyipai (English article)
  • Tencent (HKEx: 700) Taps Overseas Debt Amid China New Economy Appeal (English article)
  • Strong Demand For Mate 7 Phablet Surprises Huawei (Chinese article)

WEIBO TALK: Murdoch Back In China, Xiaomi’s Banner Year

News Corp’s Murdoch back in China

Tech executives welcomed in the New Year with some intriguing hints on their  microblogs, with posts suggesting major new moves in China from global media titan News Corp (Nasdsaq: NWSA) and online video operator LeTV (Shenzhen: 300104). In the former case, a local tech executive posted a photo of himself meeting with Rupert Murdoch in China, indicating the News Corp chief was back doing business in the country after a long absence. In the latter case, LeTV chief Jia Yueting was hinting that his company could soon become the latest Chinese Internet firm to enter the overheated smartphone market. Read Full Post…

INTERNET: Perfect World Privatizes, Renren Next?

Bottom line: Perfect World’s de-listing plan is likely to succeed and could be followed by a merger with Shanda or Giant Interactive, while Renren is likely to also get bought out and de-list by the end of the year.

Perfect World gets buyout offer

Perfect World (Nasdaq: PWRD) has become the latest US-listed online game operator to decide it’s unappreciated by shareholders, announcing a plan to privatize and de-list its shares from New York. The management-led buyout offer shouldn’t come as a surprise, as it follows a steady stream of similar moves that has seen peers like Giant Interactive and Shanda Games (Nasdaq: GAME) also leave or prepare to leave the market.

At the same time, another headline from struggling social networking site (SNS) Renren (NYSE: RENN) is fueling speculation of a similar imminent de-listing. That news has Renren announcing the resignation of its CFO — news which should normally have a neutral to negative effect on the company’s stock. But in this case the stock has jumped on the news, indicating investors may think a buy-out offer is coming. Read Full Post…

News Digest: January 3-5, 2015

The following press releases and media reports about Chinese companies were carried on January 3-5. To view a full article or story, click on the link next to the headline.

  • Fosun (HKEx: 656) Wins Contest For Club Med As Andrea Bonomi To Drop Bid (English article)
  • Haier-Evergrande, JD.com-Midea In New Alliances For 2015 (Chinese article)
  • Perfect World (Nasdaq: PWRD) Receves “Going Private” Proposal at $20 Per ADS (PRNewswire)
  • Renren (NYSE: RENN) Announces Resignation Of CFO, Board Changes (PRNewswire)
  • Xiaomi Doubles Revenue to $12 Billion as Phone Sales Triple (English article)

INTERNET – Ballooning Losses Slowly Killing Renren

Bottom line: Renren’s situation is likely to continue deteriorating as its core SNS business struggles and it sells off assets, with the company likely to close up shop or sell itself within the next 2 years.

Renren losses balloon

During the last boom for Chinese Internet IPOs in late 2010 and early 2011, one of the last names to make a successful listing was money-losing social networking (SNS) leader Renren (NYSE: RENN), which billed itself as the Facebook (Nasdaq: FB) of China. More than 3 years later, the company is still losing money and the figure is starting to balloon, according to Renren’s just released quarterly earnings.

Somewhat surprisingly, Renren still has a market value of $1 billion, even as it shows every sign of becoming a bargain buy for an acquirer or going out of business completely. But this is China, and Internet stocks that normally wouldn’t get any attention from US investors can still get noticed when they carry the “made in China” label. Read Full Post…

News Digest: November 21, 2014

The following press releases and media reports about Chinese companies were carried on November 21. To view a full article or story, click on the link next to the headline.

  • Alibaba (NYSE: BABA) Sells $8 Bln Of Bonds In Company’s Debut Sale (English article)
  • Renren (NYSE: RENN) Announces Unaudited Q3 Financial Results (PRNewswire)
  • China Mobile (HKEx: 941) Says Won’t End Handset Subsidies (Chinese article)
  • Tencent (HKEx: 700) Invests In Wi-Fi Solutions Provider ‘WiWide’ (English article)
  • BMW (Frankfurt: BMWG) China CEO Sees Margins Narrowing, Expects To Beat Market (English article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

IPOs: SNS Firm Momo Kicks Off Year-End Listing Rush

Bottom line: Mobile SNS firm Momo is likely to raise far less than the $300 million it has targeted for its IPO, as it kicks of a mini-surge of loss-making Chinese tech firms racing to list in New York by year end.

Momo kicks off year-end IPO rush

A record year of fund raising for Chinese firms on Wall Street could still have some life left, with word of another major offering plan by Momo, operator of mobile-based social networking (SNS) service. The company’s plan to raise up to $300 million would have looked ambitious at this time last year, when New York IPOs by Chinese firms were just starting to gain momentum after a nearly 3 year deep freeze. But that kind of target has become the norm in the current climate, and I expect we could see a flurry of similar-sized offerings over the next 5 or 6 weeks before the final curtain comes down on a banner year for Chinese tech IPOs in 2014. Read Full Post…

INTERNET – Results Show Sputtering Sohu, As Search Picks Up

Bottom line: Sohu’s latest results hint at lingering weakness in online games and Internet advertising, while online video also continues to suffer amid a regulatory crackdown. 

Sohu looks weak in games, advertising

The latest results from diversified web portal Sohu (Nasdaq: SOHU) are quite a mixed bag, with its lackluster search business finally showing some promising signs of accelerating growth, even as its core advertising and online gaming businesses sputter. Then there’s its money-losing online video business, which is facing a growing number of hurdles due to a regulatory crackdown, just as the unit looks set to make a minor acquisition that probably won’t add very much to its future prospects. Read Full Post…

News Digest: October, 30, 2014

The following press releases and media reports about Chinese companies were carried on October 30. To view a full article or story, click on the link next to the headline.

Sohu Buys Renren Video Unit, Amid New Spending Binge

Renren sells 56.com to Sohu

A couple of new reports are shining a spotlight on the turmoil rippling through the online video space, following a period of huge optimism that ended earlier this year with a crackdown by Beijing. One report shows a major consolidation that took place last year could be getting ready to enter a second round, with word that struggling social networking (SNS) firm Renren (NYSE: RENN) is selling its 56.com online video unit to Sohu (Nasdaq: SOHU), one of the sector’s leaders.

The other report details a new spending binge on self-produced original programs by another leader, Baidu-backed (Nasdaq: BIDU) iQiyi. That trend is accelerating following the regulatory crackdown, which has made purchasing popular TV programs and movies suddenly much more difficult. That’s forcing sites to find other ways to keep their viewers entertained and maintain their viewership. Read Full Post…