Top of the Great Era

Chapter 2986: Highly Valuable Small Company

Before an IPO, a company must publish a public prospectus.

One of the purposes of the prospectus is to tell the whole society the purpose of our public financing in the capital market. After we get the money from the IPO, we will plan to develop which sectors and businesses...

It's impossible to raise funds through IPO and then deposit the money in the bank.

Investors are willing to buy the company's stock because they see the company's growth potential and future, and believe that investing money in the company will help them grow with the company. If the company has no development potential, or the investors only deposit the money in the bank, they will not buy the company's stock.

In other words, a good business plan in the prospectus can better reflect the company's growth potential, attract more investors, and make the issuance of new shares smoother.

Now, Ziweixing International has initially formulated a comprehensive development plan after its IPO.

In addition to the original core businesses of mobile social networking, mobile Internet advertising, cloud computing services, and the development and application of artificial intelligence, there can also be new directions in online video business and online education business.

After getting off the plane, Zhou Buqi called Wen Zhixia and said happily: "Teacher Wen, I have good news for you!"

Wen Zhixia said happily: "I heard that my report was recognized."

Zhou Buqi smiled and said, "Yes, it has been reported to me. Every executive who has dealt with it has expressed their support. Many of them are strongly supportive."

Wen Zhixia knew how hard it was to achieve such an achievement, so she half-jokingly asked, "Then may I ask President Zhou, has my proposal been approved?"

Zhou Buqi just laughed.

Wen Zhixia snorted, "If you refuse me, I will write an open letter saying that the big boss is suppressing the grassroots employees."

Zhou Buqi said: "That's nothing, I was just worried that you wouldn't let me get into your bed."

"No, Mr. Wen taught you to distinguish between public and private affairs. First, I have to be able to do it myself."

Wen Zhixia was obviously in a very good mood, and she started flirting with him on the phone.

Zhou Buqi said seriously: "I have learned about the online education website Lynda you proposed. It is a very good platform. At present, it is in a closed full-payment model, which means that the website is in a trough period. The company should indeed buy this company, and then make some adjustments in strategy and business to explore greater value."

Wen Zhixia was very pleased, "That means my work is pretty good."

Zhou Buqi smiled and said, "How about you come forward and contact the other party?"

"I?"

Wen Zhixia gave in a little.

Zhou Buqi smiled and said, "Give it a try. I'll arrange a negotiation team of five or six people for you to go over there and make some contact first. It's a small company. I estimate that the number of employees will not exceed 20, so it won't be too troublesome to make some contact."

“Isn’t it to make way for the IPO?”

"Yes, you can make an appointment first."

"Appointment? What do you mean?"

Wen Zhixia didn't quite understand what he meant.

Zhou Buqi said: "It shouldn't be too difficult to acquire Lynda. It's a small project, and the current Internet situation is different from what it was before. It's already developing mobile business. Didn't you also write in your report that this company has been self-reliant for more than a decade and has never raised funds. But at the beginning of last year, it raised $1 million in funds."

"Well, 25% of the equity was released and $1 million was raised. The market valuation is now $4 million. If you want to acquire the entire company, I estimate it may cost $7 million to $8 million. The cost is not low."

Wen Zhixia doesn't think this is a small project.

Zhou Buqi said: "It's easy to operate a website, but it's not easy to operate an App on multiple mobile platforms. Even if you raise $1 million, it's hard to achieve anything. You need a more professional team. Explain this to them and they will agree. Under the current Internet trend of multi-platform operation, the makeshift team model is unlikely to work. You need to form several technical teams alone."

Wen Zhixia would never talk to him as a subordinate, so she asked directly, "What does this have to do with the appointment you mentioned?"

Zhou Buqi smiled and said, "Isn't it coming? Generally speaking, a company's IPO is very popular in the first few days, and the stock price will go up very high, and many investors will invest impulsively. But after ten days or half a month, the enthusiasm is over, and the investment enters a cooling-off period, and many investors will withdraw. At this time, the stock price will fall back, or even plummet. This is a very unstable stage for stock prices. If we release good news at this time, saying that we have successfully completed the acquisition of Lynda, it can bring investors continued investment enthusiasm. It can prevent the company's stock price from plummeting, and it will not embarrass me in front of investors."

Wen Zhixia immediately understood what he meant. "Let's contact Lynda first and negotiate the deal. Then after the IPO, we can confirm and complete the deal and release good news to keep the company's stock price strong." "Yes, what do you think? Do you want to give it a try and lead the team to negotiate with them?"

Although he says that public and private affairs should be clearly separated, Boss Zhou cannot help but allocate more resources to his woman. This is an affirmation of her work and an encouragement to her confidence.

Wen Zhixia was a little unsure, "What if I mess up?"

Zhou Buqi said: "You try it first. If you feel it doesn't work, you can arrange for someone else to go. Even though this company is very valuable and has a high valuation, it is actually accumulated over many years. It is just a small company."

It can be seen from the fact that Lynda has not raised funds for more than ten years that it is not a company with an Internet mindset at all.

Or it could be that the founders and management team simply don’t understand the Internet.

This is actually a company founded by two teachers.

It has been relying on paid subscription fees to barely survive for more than ten years, and has accumulated an average of more than 40 paying users per month... Fortunately, users in the United States have strong purchasing power, and the monthly membership fee is US$25, which is a really dark price.

This shows how expensive educational resources are in the United States. Ordinary people and families really cannot afford it.

Zhou Buqi persuaded Wen Zhixia.

Next, I will go to see Senior Sister Zhen Yu.

Recently, she has been based in New York, overseeing a series of financial audits, tax filings and stock sales for Pluto Capital and Neptune Capital.

  Especially stock sales, it is very important!

Because only by selling the stocks can they be converted into cash dividends and distributed to Boss Zhou.

According to conservative estimates, these two funds could bring over $30 billion in dividend income to Mr. Zhou in the past year. To get this dividend income, he must sell his stocks and then re-divide the investor shares in the fund pool.

It is not easy to sell such a large amount of stock.

Every year, Senior Sister Zhen Yu has to spend at least half a month to run this matter.

Zhou Buqi was only responsible for spending money.

This time I came here to ask Senior Sister Zhen Yu for money.

When Senior Sister Zhen Yu returned home in the evening, Zhou Buqi jumped out and asked, "Senior Sister, did you get the money?"

"Part of it will basically be operational by the end of the month."

"How many are there?"

“$29.4 billion after taxes.”

"Yeah, that's good!"

Zhou Buqi was one hundred percent satisfied.

Now, the family’s debt pressure can be greatly reduced, and he has sufficient funds to allocate and use.

Zhen Yu looked at him with a smile, she was used to it, "You need money again?"

Zhou Buqi smiled and said, "Well, not too much, $1 million or $2 million is enough. You know about YC investment, right?"

"Yes, it's the famous venture capital firm in Silicon Valley."

Senior Sister Zhenyu’s current work is focused on the financial field, so of course she knows the famous YC Investment.

Zhou Buqi said, "I recently poached someone from YC Investment. I poached their newly appointed president. It was a bit like I deliberately didn't go. Paul Graham, the big boss of YC Investment, is also a well-known figure in Silicon Valley. He finally found a successor, but I snatched him away less than two years after he took office. Let's pay some money to repair the rift."

(End of this chapter)