Renren, a Chinese real-name social networking internet platform, announced that it has entered into a definitive agreement to acquire 100 per cent of 56.com, a user-generated content (UGC) online video sharing site in China. The consideration for this acquisition will be $80 million in cash. The acquisition is expected to be completed in the fourth quarter of 2011, subject to customary closing conditions.

Renren also announced its second quarter results recently. According to the company, its net revenues for the second quarter of 2011 were $30.4 million, representing a 53.2 per cent increase from the corresponding period in 2010. Its online advertising revenues were $16.9 million, representing an increase of 93.8 per cent from the corresponding period last year.

Founded in 2005, 56.com is a leading online video-sharing site where users can upload, view and share videos. A majority of the videos offered on the site is created by users, consisting of content mix from performing artists, amateur groups, and video enthusiasts.  Co-Founder and CEO Juan Zhou shall join Renren’s management team as Vice President.

Renren Inc. (NYSE: RENN) operates a leading real name social networking Internet platform in China. It enables users to connect and communicate with each other, share information and user generated content, play online games, listen to music, shop for deals and enjoy a wide range of other features and services. Renren’s platform includes the main social networking website Renren.com, the online games center game.Renren.com, and the social commerce website Nuomi.com. Renren had approximately 124.2 million activated users as of June 30, 2011.

E-Say

Joseph Chen (Chairman and CEO, Renren): UGC videos have been increasingly popular amongst SNS users as natural extensions of communication and content sharing. The acquisition of 56.com will help Renren further meet user needs of recording and sharing their lives through video format on our social network.

Juan Zhou  (Co-Founder and CEO, 56.com): Given its user base and broad offerings in SNS, mobile, and social commerce, Renren’s platform will provide deeper resources and support to enhance 56.com’s attractiveness to users.