Renren Admits to Population Inflation; More to Come?
In the latest twist in the increasingly complex race to market between Renren and Kaixin, China’s two Facebook wannabes, Renren has apparently confessed to US stock regulators that its initial public filing significantly inflated its user numbers. According to Chinese media, Renren has told the SEC in a new filing that it added 5 million new users in the first quarter, not a bad figure but quite a bit less than the 7 million it originally reported. (Chinese article) That means its user base grew base grew 19 percent in the quarter to 31 million, again not bad but well below the 32 percent growth it previously reported. Obviously people are starting to pay extra close attention to the numbers, not least of all rival Kaixin, which is seeking to derail Renren’s IPO plan with a lawsuit over one of Renren’s Internet domain names that is being heard in China’s highest court. (previous post). This latest twist would seem to indicate Renren’s plan and early lead in the race may be quickly losing momentum, as now people will start to question their other numbers as well. At this point Renren needs a quick boost from something, perhaps a court victory, a major investor endorsement or something else, if it wants to maintain its quickly fading lead in this race.
Bottom line: Renren’s latest admission that it inflated first-quarter user numbers is taking more momentum out of its fast-dwindling lead in its race to market with Kaixin.
Related postings 相关文章:
◙ Kaixin Fights Back in Race With Renren to Market 人人、开心上市大PK：开心扳回一局
◙ Renren Takes Lead Over Kaixin With Blockbuster Filing 人人网：风风火火IPO 气势盖过开心
◙ Renren Vs Kaixin: Who Will Get There First? 开心网PK人人网：谁能抢先上市？
