Renren ends
Source: Wu Xiaobo Channel
Wen/Ba Jiuling
But youth is like this, applauding with tears.
——Just in Time
Yesterday, Renren announced that Renren sold itself to Beijing Duoniu Interactive Media, and the "selling money" was $20 million in cash+$40 million in shares.
Seeing the news, a picture came to the mind of the minibus:
Last winter, a man in Beijing got drunk and shouted about his great achievements in college: band bassist, school grass, a group of girls running after him
Before he finished speaking, there was a sigh of regret. Only when he turned back and forth through QQ photo albums and Baidu Cloud Disk without success, opened Renren and found out the photos that had been dusty for eight years, did anyone begin to believe it.
Yes, Renren is the memory of a generation.
Looking back at that year, Renren had a brilliant future: its highest valuation was $9.4 billion, and it was regarded as the "Chinese version of Facebook" because it had half of the social network (the other half belonged to QQ).
Its predecessor is Xiaonei Net founded by Wang Xing. In 2005, the Xiaonei Network could only register with the email at the end of the edu (which means real name registration is required). Three months after it was launched, the number of registered users exceeded 30000.
This is nothing. After being sold by Wang Xing, Renren, which is headed by Chen Yizhou, entered a rapid development period: in 2008-2010, when China's Internet youth were most emotional, the number of registered users increased to 170 million, and the monthly life exceeded 100 million. Even in the competition with Facebook, Renren took the lead in entering the New York Stock Exchange.
But later, we all know that microblog and WeChat rose, and Renren gradually declined and faded out of people's sight.
Not long ago, Wang Xing led Meituan to strike the gong of Hong Kong Stock Exchange. Less than two months later, Renren was sold at a low price.
However, there is another amazing thing about Renren's acquirer Duoniu Media. Thirteen years ago, Qianxiang Group in Chen Yizhou's hands acquired Donews; 13 years later, Donews' Duoniu Media acquired Chen Yizhou's Renren. com.
It's too dramatic. The minibus is really messy.
So, what's the matter with this deal? What do the buyers and sellers think? Does Renren have a future after being acquired? Let's take a look at the analysis of Big Head.
Wei Wuwei, Tianqi Amiba Fund Management Partner, Science columnist Renren died of lack of focus
This deal is like a son buying his father
There are two reasons why Renren.com is cold:
① Leader Chen Yizhou's question
Chen Yizhou is a very excellent investor. He has invested in many projects and sold them at a high premium.
But he is not a qualified CEO and misjudged the trend of mobile Internet. As well as his lack of focus on business, he tried a lot of business before and after, and gave up when he was slightly frustrated.
The same is true of Renren, who died of lack of concentration.
② Problems of Renren products
In the era of Wang Xing, the use of this product on campus was relatively smooth. However, in the era of Chen Yizhou, Renren has become very fancy and has many functions. It has not established a particularly good product logic, and sometimes users may feel confused.
But obviously, it is not surprising that Renren, the No. 1 product in the Internet era, has slowly cooled down.
When it comes to specific transactions, it can be said that they are a bit confusing. Duoniu Media, the acquirer, was formerly a subsidiary of Renren, so this transaction is equivalent to the son's purchase of Dad.
However, since Wang Le, chairman of Duoniu Media, and Chen Yizhou are acquaintances, it is conceivable that this is a related transaction. I believe that the SEC will ask them to make some explanations.
In June this year, Renren sold many of its assets to its wholly-owned subsidiary Oak Pacific Investment. Moreover, the assets at that time were basically sold at a discount, in a sense, there was a sense of transferring assets.
Today, Renren only has used car business and SaaS business.
From the perspective of the acquirer Duoniu Media, its DoNews website is not very popular. Its most valuable and important businesses are actually several game communities.
Ding Daoshi, a senior Internet watcher, was the former president of Speedway Research Institute This transaction has feelings
Chen Yizhou Picks the Cheap
The decline of Renren is the general trend. Social networks have experienced the evolution of BBS era - blog era - SNS era - microblog and WeChat era.
During this period, most companies can only do well in one or two times. When the times become history, they also become history. It is not easy for Renren to persist to today.
Of course, there are also personal reasons for Chen Yizhou. In the past 5-10 years, his control over Internet trends is far less than that of a new batch of Internet entrepreneurs, who still work with the old ideas and respond slowly.
Now, Chen Yizhou has sold Renren with shares of 20 million dollars and 40 million dollars. Compared with the market value of 10 billion dollars, it can be said that it is cabbage price. It must be very helpless.
But in fact, this is not a transaction in a simple sense. It can be said that selling to a company with such a strong connection with Renren has some feelings.
In response, Chen Yizhou said: 60 million dollars is a small matter, and the key is the right person. It can be seen that he is interested in the ability and pattern of Wang Le and Die Zi, the two founders of Duoniu Media.
Both of them are journalists. They have worked hard all the way. They are both media operators and business managers, and have also made some achievements.
Yesterday, I saw the foresight of Duoniu Media through the communication with Dish. They believed that the new media has reached the matrix era. Content+technology+product matrix, and the integration of all parties is its barrier and playing method. I agree with this.
It is believed that Duoniu will activate Renren again in the future. Although it is unlikely to recover its glory, as an old social network platform, Renren has its brand value and user base, so there are still some opportunities.
In addition, in addition to $20 million in cash, there are $40 million in shares, which is equivalent to Chen Yizhou becoming a shareholder of Duoniu Media with a large share. Chen Yizhou did not completely give up. He may continue to participate in the development of Xinrenren in the form of consultant in the future.
In general, behind this transaction is a benign cooperation model. If you look at it from another angle, it is Chen Yizhou who has taken advantage of it.
Internet analyst, editor in chief of Gejia News website It's good that Duoniu can reorganize Renren. com
But if you don't succeed, you can earn back the cost
In 2011, Renren went to the New York Stock Exchange for listing. At that time, it was listed mainly on social networking. However, it has not done well in recent years and has become a secondary business. Therefore, Chen Yizhou stripped it off and sold it to Duoniu Media.
It can be seen that Chen Yizhou is an expert in capital operation. Stripping off non-performing assets and integrating and adjusting the remaining businesses can not only change the image, but also boost the stock price. Maybe this company will change its name in the US stock market in the future.
In recent years, the overall situation of social networks has been basically settled. Renren has been losing users and traffic. It is better to strive for change than to linger.
Moreover, the greater significance of this matter lies not in equity trading, but in changing people to do it. Because Renren has a close relationship with Duoniu Media, it has not fallen into the hands of others anyway.
The main business of Duoniu Media is media, which has nothing to do with social networks. However, the acquisition of Renren at a low price is still meaningful. You can do some targeted marketing and make efforts to adjust the product structure of Renren to make it revitalize.
It doesn't matter if it can't be done. Developing and utilizing the historical data retained by Renren in the past is enough to earn back the money spent.
Therefore, this transaction is meaningful for both parties.
If Renren is sold out, maybe many people will feel empty. Some people say that they have settled the price, and our youth and memory have also been sold.
The generation who once walked with wind and always had light in their eyes is no longer enthusiastic and angry, and no longer the majority of people on the Internet. But as long as we talk about that era, they will always have memories that are not repeated and emotions that are difficult to cover up.
So, what about you? If you also recall what you did with Renren in the past, you can say it in the message area.
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Editor in charge: Wan Lu
