Once upon a time, Renren.com was going to be huge, China’s answer to Facebook. Backers included SoftBank’s Masayoshi Son and top venture capitalists. The stock soared on its debut in the New York Stock Exchange in 2011.
Time hasn’t been kind. Today, shares in Renren trade at about $1.50. And now, the company has announced the sale of its social network to a Beijing-based startup for $20 million cash plus $40 million in shares.
There’s an interesting pedigree. Renren was built upon a social network co-founded by Wang Xing, the billionaire founder of online services superstore Meituan. And Renren.com’s CEO is a major shareholder in online-lender SoFi.