Rumor Update: Sohu Video to Acquire 56.com

DoNews, 10/31/14

In an internal company email, Chinese internet firm Sohu (Nasdaq: SOHU) revealed that it has reached a deal with Beijing-based social networking site operator Renren (NYSE: RENN) to acquire Renren's online video platform 56.com. 56.com will be merged into Sohu Video.

The details of the acquisition will be announced next week, according to an internal email at 56.com, at which time 56.com founder Zhou Juan will step down.

According to a source familiar with the deal, Sohu paid USD 25 mln for 56.com. The previously rumored purchase price of USD 12.9 mln was only the cash portion of the deal, not including stock.

Editor's Note: For more information on this topic, please see "Rumor: Renren to Sell 56.com to Sohu," MD 10/21/14 issue.

Keywords: Zhou Juan Internet online video 56.com Renren Sohu RENN M&A

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