Date
16 August 2017
Renren wants to offload non-core businesses and seek fresh investment opportunities, says its CEO Joseph Chen. Photo: Bloomberg
Renren wants to offload non-core businesses and seek fresh investment opportunities, says its CEO Joseph Chen. Photo: Bloomberg

Renren seeks to divest some non-core businesses

Renren Inc., which operates a popular social-network platform in China, is planning to sell some non-core businesses as part of efforts become profitable, its chief executive said. 

“The business in the current form—it’s difficult to make money. We are transforming fundamentally to change how we do business,” the Wall Street Journal quoted Joseph Chen as saying in an interview Monday on the sidelines of the WSJD Live global technology conference at Laguna Beach in California.

He declined to reveal which businesses the company wants to divest next after Renren sold its e-commerce operations to Baidu Inc. in August last year.

Meanwhile, the group is considering potential investment opportunities in the US and Hong Kong.

It is also open to joint ventures with bigger technology companies in areas outside of social networking, which is its core business, Chen was quoted as saying.

Chen, who is also Renren’s founder and chairman, said more strategic investments are likely because the company wants to invest in innovative startups that could further its growth.

The firm is considering an investment in a Hong Kong-based startup, he said, without giving details.

Renren has about US$800 million set aside for strategic investments, according to the report.

“We don’t want to be too complacent but not too aggressive and we’re on the lookout for the best deals,” Chen said.

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RC

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