RSS
 

Archive for the ‘Internet’ Category

Chinese Facebook enters the US stock exchange

05 May

BörsenstartRenren (Chinese for Everybody) is the name of the most popular social network in China – aka the Chinese version of Facebook. However, its 31 Million do not make Renren a serious competitor to the world leading network Facebook (which currently has more than 600 Million active users). The first day in stock (May 4th) was quite successful though – a strong plus of 29% to $18.01).

Some experts see the IPO (Initial Public Offering) of Renren as a foretaste of the Facebook IPO which has been announced for 2012. Investors are excited about arising opportunities of social networks on the stock market.

With LinkedIn, Groupon and Skype there are three more promising US corporations to come this year:

Upcoming IPOs

Corporate Values in $bn

 

Since several governments (Syria, China, Iran and Vietnam) have blocked the Facebook network due to its “open nature”, there is some space left for more competition within these countries. Clearly, the Facebook censorship is a defensive signal. The Chinese government is afraid to lose its power over the people. The conservation of cultural values and beliefs is – according to experts – a lame excuse. For Chinese people it is even worse – they feel kind of isolated from worldwide progress and blame the government.

Now that the first Chinese social network has entered the US stock exchange, we could question ourselves why the relatively small Chinese network has been granted access to the rest of the world – and even being shared by the rest of the world – while the “Rest of the World” in the shape of Facebook is continuously blocked?