Renren was once highly popular in China, but in the past few years, we have seen a huge decrease in their popularity. Due to this, the senior executives of the network have offered a buyout for the company. CEO Joseph Chen and COO James Jian Liu have wanted to acquire all the shares of the company that are listed. They wanted these shares for around $1.40 US per share and $4.20 for depositary shares. This share price would put the value of the company at $1.4 US billion.
When Renren first hit the market, they were touted as being the Facebook of China. Initially, they were valued at $7.48 US billion and were getting an opening share price of $19.50 per share in the United States. However, as other companies came to the Chinese social media market, and started to perform better, Renren started falling in popularity. Sina Weibo was one of the main competitors for the company, as well as WeChat, that eventually made Renren incomplete on the market. Many people cited other social media sites as offering more current news that was appealing when compared to Renren offerings.
In addition to the competition that Renren has faced on the market, they also made some poor decisions concerning the company. In 2011, they purchased 56.com for $80 US million. 56.com was a video website, one in which the company hoped to increase their consumer appeal. However, just a short period later they old this to Sohu for only $20 US million. A huge loss for the company.
Renren did try its best to perform on the market, however, with the other social media sties out there, they simply could not complete. It looks as though Renren has seen its best days. What will happen next to Renren is not clear, but it could be the end of this social media option for people as the Chinese market knows it.