RENREN Inc, a Chinese social networking site, estimated losses of between US$15 million and US$17 million for the fourth quarter, and projected it would not be profitable this year.

The losses were due to increased investment and the consolidation of online video site 56.com which it acquired last year, the company said in a preliminary earnings report yesterday.

The company estimated revenue in the three months ended December 31 of between US$31 million and US$33 million.

Renren has been stepping up investment in various sectors, including a daily deal website called Nuomi, in a competitive market as it battles for users with other major players such as Sina and Tencent.

In September, Renren acquired 56.com for US$80 million to diversify its services. It will allocate an extra US$60 million to US$70 million this year to upgrade servers for 56.com.
 

Source:shanghaidaily