Chinese social networking site Renren.com has announced plans to acquire the entire stake in 56.com, a Chinese video website, for USD80 million in cash.
The transaction is expected to be completed in the fourth quarter of 2011. This is reportedly the first major strategic acquisition of Renren.com since the company was listed in the New York Stock Exchange in May 2011.
The transaction will reportedly not affect the current organizational structure of 56.com. In addition, Renren.com made a complete employee incentive program for 56.com to encourage these employees to stay in the company. At present, 56.com has about 200 employees. Of these staff, those working for the marketing, sales, and product teams of 56.com will be integrated with the corresponding teams of Renren.com after the transaction.
With this acquisition, 56.com will becom...
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