Social networking business Renren has acquired a 100 per cent stake in 56.com, a company which provides a platform for user generated online video content.

Social networking business Renren has acquired a 100 per cent stake in 56.com, a company which provides a platform for user generated online video content.

The deal, which is for a total of $80 million, brings to Bejing-based Renren a business which aligns with the fast-growing user generated content (UGC) market.

Joseph Chen, chairman and chief executive officer of Renren, comments: ‘UGC videos have been increasingly popular amongst social networking service 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.’

Chen adds that 56.com’s focus on providing video sharing services versus professional content has meant that the business has built up a ‘strong’ following of UGC users.

Co-founder and chief executive officer of 56.com, Juan Zhou, says that Renren’s platform of social networking services, mobile and social commerce will allow 56.com to provide ‘deeper resources’ to bolster its offerings.

Under the terms of the deal Zhou is to join the management team of Renren as vice president.

The purchase marks Renren’s first strategic takeover since its US IPO in May.

According to a statement more than 90 per cent of the video clips on 56.com are made an uploaded by users.