Rumor：Lashou in Acquisition Talk with Nuomi
Sina Tech, 5/27/13
A source at Chinese group buying site Lashou revealed recently that the CFO of Beijing-based social networking site operator Renren's (NYSE: RENN) group buy site Nuomi.com approached Lashou investors in late 2012 regarding an acquisition of Nuomi by Lashou. There were reportedly two rounds — informal and formal — of discussions.
When asked for confirmation, Nuomi.com CEO Shen Boyang said that Nuomi had contacted Lashou in late 2012 in hopes of acquiring Lashou. Shen said that talks were ongoing, but that agreement remains elusive given Lashou investors' unwillingness to allow Nuomi to acquire a majority share of Lashou.
Editor's Note: While the question of who wants to acquire whom remains a he-said/she-said story, Nuomi's cash reserves and overall development make the company likelier to have initiated talks to acquire Lashou than vice versa. Joe Chen, CEO of Nuomi's parent company Renren, said in the company's Q1 2013 earnings call that Renren hopes to grow Nuomi threefold, and that Renren has made preparations to invest another USD 50 mln in the site.
Keywords: Joe Chen Internet Renren Lashou group buying Shen Boyang Nuomi RENN M&A
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