Chinese social networking site has announced plans to acquire the entire stake in, a Chinese video website, for USD80 million in cash.

The transaction is expected to be completed in the fourth quarter of 2011. This is reportedly the first major strategic acquisition of since the company was listed in the New York Stock Exchange in May 2011.

The transaction will reportedly not affect the current organizational structure of In addition, made a complete employee incentive program for to encourage these employees to stay in the company. At present, has about 200 employees. Of these staff, those working for the marketing, sales, and product teams of will be integrated with the corresponding teams of after the transaction.

With this acquisition, will become a wholly-owned subsidiary of Zhou Juan, co-founder and chief executive officer of will join’s executive team as vice president. Zhou said they are glad to become members of, whose large user base, successful experience, and various resources in the social networking, mobile Internet, and e-commerce sectors will enhance their attraction to users.

Chen Yizhou, chairman and chief executive officer of, said the acquisition of will help meet more communication and sharing demands of users and help record and share their life on the Internet.

Over its six years’ operation, gained total investments of USD30 million.

In May 2011, launched IPO in the U.S. and gained USD743.4 million. The financed capital was used to strengthen the company’s capacity and brand awareness as well as providing equity incentives to employees. The Chinese social networking site invested USD180 million in development and technology and another USD180 million in sales and marketing.