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.

Sina Weibo Sniffs E-Commerce With Alibaba 阿里巴巴或牵手新浪微博

New reports over the weekend have Sina’s (Nasdaq: SINA) popular but profit-challenged Weibo microblogging service sniffing out a strategic tie-up with e-commerce leader Alibaba, in what looks like a very smart tie-up to me if it’s true. Meantime in related news, NetEase (Nasdaq: NTES) is shuttering one of its main social networking services (SNS) sites, again reflecting how difficult it is to make money in the popular but cash-poor world of SNS. Let’s take a look first at the big news regarding a potential Sina-Alibaba tie-up, which would mark a major step in the drive by Sina Weibo towards becoming profitable.

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Vipshop, Renren Search for Profits 唯品会与人人网业绩迥异

Two very different stories are emerging from the latest results of discount online retailer Vipshop (NYSE: VIPS) and social networking site Renren (NYSE: RENN), which are both trying desperately to escape from the loss column amid growing investor impatience with money-losing Chinese web firms. On the one hand, Vipshop’s latest results show it is likely to emerge into the profit column in the final quarter of this year, prompting cheers from investors. But Renren appears to be moving in the opposite direction, reporting a widening loss as China’s ad market worsens. Meantime, new details are also emerging on the latest fund-raising by e-commerce giant Jingdong Mall, which also points to growing investor impatience with money losing web firms.

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News Digest: November 14 报摘: 2012年11月14日

The following press releases and media reports about Chinese companies were carried on November 14. To view a full article or story, click on the link next to the headline.
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  • China Sells Jetliners, May Spur Eastern Air Lines Revival (English article)
  • LDK Solar (NYSE: LDK) Reaches Agreement to Terminate Wafer Contract (PRNewswire)
  • Huntsman, Sinopec (HKEx: 386) In JV To Build, Operate Nanjing PO/MTBE Facility (PRNewswire)
  • Renren (NYSE: RENN) Announces Unaudited Q3 2012 Financial Results (PRNewswire)
  • Apple (Nasdaq: AAPL) Appeals 520,000 Yuan Award in China Encyclopedia Case (Chinese article)

 

News Digest: September 4, 2012 报摘: 2012年9月4日

The following press releases and media reports about Chinese companies were carried on September 4. To view a full article or story, click on the link next to the headline.
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  • Baidu (Nasdaq: BIDU) to Spend 10 Bln Yuan on Cloud Computing Center – CFO (Chinese article)
  • China Mobile (HKEx: 941) Wants China Telecom (HKEx: 728) to Adopt TD-LTE -Source (Chinese article)
  • Suning (Shenzhen: 002024) Flagship Stores to Carry General Merchandise (English article)
  • McGraw-Hill, New Oriental (NYSE: EDU) Unveil College Readiness Program for China (PRNewswire)
  • Renren (NYSE: RENN) Eyes E-Commerce, Mobile Games, Seeks Acquisitions (Chinese article)

Outlook Cloudy For Shanda 盛大前景暗淡

Things are looking cloudy for Shanda Interactive, the formerly listed entertainment company whose core online game unit appears to be going through some turmoil even as its more promising online literature unit faces its own separate headwinds. Shanda was once a superstar in its space, making headlines when it became the country’s first new media entertainment firm to make a New York IPO in 2004. But it has struggled in the last 3 years, as its core online game unit Shanda Games (Nasdaq: GAME) saw its growth shrivel and many of its other initiatives bombed.

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SNS Real Names: Crackdown Ahead? 社交媒体未“实名” 或面临更严厉监管

I read with amusement this morning a report stating that Baihe, one of China’s smaller social networking sites, is still letting people register under any name they choose, even though Beijing rolled out a controversial “real name registration” system months ago designed to curtail rumor mongering. The report, which looks credible, reflects the very real fact that such real name registration has been difficult if not impossible for not only Baihe but also much bigger names like Sina (Nasdaq: SINA) and Tencent (HKEx: 700) posing a very real risk for these Internet titans if and when Beijing decides to enforce the real name rule, or even worse, to punish companies that have failed to comply.

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Portals Shun Olympics, Baidu’s New JV 门户网站避开奥运,百度新设合资企业

Second-quarter earnings season and the London Olympics won’t begin until next week, but we’re already seeing signs that an ad slowdown is hitting profits at many Chinese Internet companies as they get set to report their latest results. Specifically, media are reporting China’s top 4 portals have decided to skip expensive rights for live coverage of Olympic events, and instead are opting to provide less pricey video-on-demand (VOD) rights that allow Internet users to watch recordings of their favorite sports after the events. (English article)

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Ad Slowdown Builds With Publicis Warning 阳狮预警反映中国广告市场增长加速下滑

French publishing giant Publicis (Paris: PUBP) has become the latest media firm to warn of an advertising slowdown in China, setting the stage for some ugly numbers when new media companies start reporting their second-quarter results next month. The slowdown has already started to hit second-tier players like Phoenix New Media (NYSE: FENG) and social networking site Renren (NYSE: RENN), and has even shown signs of starting to affect top tier players like leading web portal Sina (Nasdaq: SINA). (previous post)

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Renren Weighs Game Unit Spin-Off 人人网考虑分拆游戏业务

Renren (NYSE: RENN) investors tired of seeing losses quarter after quarter could soon have another alternative as China’s leading social networking site reportedly plans to spin off its online game unit into a separately listed company. If true, the news would mark the latest plan by an Internet company to spin off an individual business into a separate unit, as part of a broader trend by this sector to provide investors with clearer choices focused on specific businesses like games or e-commerce. Many of China’s Internet companies, especially the older ones, often have lots of different businesses, from portals, to games, e-commerce and social networking, under a single company. One or more of the businesses are often profitable and end up subsidizing the others that are losing money — frustrating investors who might like the profitable units but care less for the loss-making ones. In this latest case, media are citing unnamed sources saying Renren is crafting a plan to spin off its game unit by September, and would eventually list the business separately with an IPO. (Chinese article) Renren may have hinted at this move when it released its first-quarter results last month, at which time it said its online game revenue nearly doubled to $17.5 million, accounting for more than half of the company’s total revenue. (previous post) I’m normally not a big fan of online game stocks, as business for such companies can vary widely due to their dependence on 1 or 2 popular titles for success. But in Renren’s case, the company actually looks a bit more interesting than traditional rivals like Shanda Games (Nasdaq: GAME) and The9 (Nasdaq: NCTY), which are simply game companies and little more. Renren brings the added advantage of millions of users for its core social networking site, which provide an instant audience for its games. For that reason, it could probably find more success with so-called casual gamers, the people who like to play games occasionally but aren’t as fanatical as hard-core players who can spend hours playing at Internet cafes. Renren hasn’t commented in too much detail on the game business, but presumably its profitable or would become profitable by the time of a public listing, most likely late this year or in early 2013. That would be an attractive alternative for investors, who have shunned Chinese IPOs for nearly a year now partly because most of the ones to list during that time were losing money. An IPO for Renren’s game unit would parallel a similar move by Internet portal Sohu (NYSE: SOHU), which spun off its gaming business into a separately listed company, Changyou (Nasdaq: CYOU) several years ago. Others reportedly weighing similar moves include gaming company NetEase (Nasdaq: NTES), which may spin off its portal business; and Internet giant Tencent (HKEx: 700), which recently reorganized and has discussed spinning off its e-commerce business. Look for more such spin-off plans in the next 12 months, potentially providing stock buyers with some more focused, and perhaps even profitable, China Internet investment options.

Bottom line: Renren’s reported plan to spin off its online games business is part of a trend that could see a flurry of similar moves and IPOs by profitable Chinese Internet companies in the next year.

Related postings 相关文章:

Renren: China’s Next Gaming Company? 人人网:中国下一个网游企业?

Tencent E-Commerce: Another Money Loser IPO 腾讯电商:将又一个失败的

NetEase Name Change: Spin-Off Coming 网易更名:预示业务分拆

News Digest: June 2-4, 2012 报摘: 2012年6月2-4日

The following press releases and media reports about Chinese companies were carried on June 2-4. To view a full article or story, click on the link next to the headline.

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◙ MIIT Official: China’s 3G User Base Just 80 Mln (English article)

China Lodging Group (Nasdaq: HTHT) Announces Investment in Starway Hotels (PRNewswire)

Renren (NYSE: RENN) Considers Spin-Off, Listing for Game Unit – Source (Chinese article)

Google (Nasdaq: GOOG) Warns China Users on Searches That May Break Connection (English article)

Tencent (HKEx: 700) Soso, Microsoft (Nasdaq: MSFT) Bing to Tie Up on Search Ads – Source (Chinese article)

Renren: China’s Next Gaming Company? 人人网:中国下一个网游企业?

Renren (NYSE: RENN) has reported a widening loss that should normally be worrisome, and yet investors seem to be focusing on surprising strength in the online game business for this leading social networking site, which could perhaps finally lead it to its goal of long-term profits. The upbeat news for Renren’s game business comes as another major online game developer, Japan’s Nexon (Tokyo: 3659), is also reporting strong growth in its China business, testifying to the resilience of this market dominated by teen-agers and 20-somethings who seem less like to reduce spending on their hobby even as China’s economy shows signs of slowing. In fact, the slowing economy hit Renren’s other main business, advertising, in the first quarter, with ad sales climbing an anemic 15 percent as the business experienced a “challenging period”, Renren said in its results announcement. The advertising slowdown is hardly unique to Renren, with other major ad-dependent companies also like Sohu (Nasdaq: SOHU) and Phoenix New Media (NYSE: FENG) also reporting weakness in the most recent quarter. But while Renren’s advertising revenue reached just $9.3 million for the quarter, online game revenues soared 90 percent to $17.5 million, meaning games now account for more than half of Renren’s revenue. Despite that rise, the company’s net loss ballooned to $13.6 million, far bigger than the $2.6 million a year earlier. Investors clearly seemed to be focused on the upbeat story in online games, bidding up Renren shares by nearly 3 percent in after-hours trading after the results came out. If online games can continue growing at a similar rate, the business could potentially lead Renren to the elusive goal of long-term profitability, although such a shift would make the company look more like an online game company competing with names like Shanda Games (Nasdaq: GAME) and NetEase (Nasdaq: NTES) rather than a social networking company like Facebook. If that happened, Renren certainly wouldn’t be the first to make such a transition, as NetEase itself started out as a portal company before becoming a gaming giant, and gaming leader Tencent (HKEx: 700) also rose to fame on the back of its popular QQ instant messaging platform. Of course, the big risk in moving into online games is becoming dependent on individual game titles as a major revenue source, meaning one needs to develop or license a steady stream of new games to stay successful. Meantime, Nexon, supplier of a popular gaming title to Tencent, has said its China sales also rose similarly by nearly 90 percent in the first quarter and should remain robust throughout the year, even as the broader China online game market is only expected to grow about 12 percent. (English article) All that says that there’s still plenty of growth opportunity in China’s online game market despite the broader economic slowdown, though companies with popular titles and a wider arrange of complementary social networking offerings like Renren and Tencent could be better positioned to thrive in the current climate.

Bottom line: An unexpectedly rapid growth in gaming revenue could help lead Renren into the profit column by the end of this year, transforming it into an online game play.

Related postings 相关文章:

NetEase: Still a Gamer With WoW Renewal  网易续签《魔兽世界》运营权

Online Games: Where’s the Excitement? 中国网游企业增长有限

Shanda Delists: Thanks for the Profits 盛大网络退市:获利可喜