Renren, China’s largest social networking site is gearing up for an initial public offering (IPO) in the United States in the first half of 2011, the Reuter reported.
Oak Pacific Interactive, Renren’s parent company had hired Credit Suisse and Deutsche bank to underwrite the IPO.
As last reported, Renren currently has over 120 million users and is helping 63 users to connect with a new friend every second. Thanks to the great firewall of China, Renren has the opportunity to rise to popularity. With over 420 million users, China is also the world’s largest Internet market. Half of these Chinese Internet users engage in online social networking activities.
Renren’s move was believed to be inspired by Youku (video sharing network) and Dangdang’s (E-commerce site) IPO success in the U.S. Both Youku and Dangdang saw their stock rocket up on this week’s debuts.
As Renren grows larger, it heightens the entry barrier for Facebook to enter the Chinese market. Facebook is taking cautious approach toward China but I wonder if time is on its side. The biggest problem is still the ban that restricts Facebook from entering the market. Renren is surely enjoying the ride.
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