Rumor: Tongxue Investor Seeks to Sell Business
DoNews, 3/26/10
According to an internal source, Tano Capital, the main investor of Chinese location-based social networking and microblogging service Tongxue, has begun officially searching for a buyer for the site. According to relevant agreements, Tano Capital may take control all of Tongxue's founders' shares as well as the majority of the site's assets in June. Internal sources say that the 2009 investment agreement signed by Tano Capital and Tongxue included a valuation adjustment mechanism and, given that the site's current pace of development leaves it unable to reach the requirements listed by the investor in the agreement, Tano Capital has the right to seize virtually all of the SNS's assets.
According to publicly released data, Tongxue currently has 15 mln registered users, but continues to do poorly in terms of income and financial support.
Keywords: Internet Tongxue SNS registered users Tano Capital microblogging
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