Talks in Beijing on December 4 between Facebook CFO Gideon Yu and Fenbei CEO Zheng Li may have confirmed the acquisition rumor that has already been circulating. Facebook will reportedly pay USD 15.39 mln (RMB 117 mln) for the complete acquisition of Fenbei. Alcatel and IDG, Fenbei's investors from its previous two rounds of financing, will withdraw from investing venture capital in the site following the acquisition.
Fenbei is a Chinese music community with a user base consisting of young music fans and students. It has 15 mln users and is increasing at a rate of 40,000 users per day. However, the site's profitability has been very weak from the start, so generating sufficient revenue from the site will be a challenge for Facebook.