Chinese Social Media Platform Renren to Acquire Video Sharing Portal 56.com

China’s answer to Facebook - Renren Inc. announced on Tuesday it is going ahead with the proposed acquisition of one of the oldest video sharing portal in China - 56.com.

According to the company, the move was made with the vision of tackling the relentless challenges exerted on it by other Web companies.

The Beijing based social media outfit also stated that it intends to purchase all of 56.com. The video sharing site, which happens to be one of the oldest of its kind in the country, was founded in 2005 and enjoys backing from Walt Disney Co.’s venture-capital affiliate Steamboat Ventures, according to a Wall Street Journal report.

The financial terms involved in the deal, according to Renren, will be somewhere around the $80 million mark. The deal is likely to be closed sometime during the fourth quarter of this year.

"The acquisition of 56.com will help Renren further meet user needs of recording and sharing their lives through video format on our social network," said chief executive Joseph Chen in a statement, Reuters-India report.