Media Tycoon since 1999

Chapter 394 Valuation of $2 Million

Gao Yang understood that his decision to sell 51 Guardians was not only difficult for Ding Lei and Li Yan to understand, but also many executives and directors of 51 Group would have similar thoughts.

It is not easy to explain this matter clearly, which is why Gao Yang thought about it for three days before finally making up his mind.

At this time, even though she knew that Gao Yang had this idea and thought about it for two or three days, Gu Yawen didn't understand why Gao Yang made such a decision, and she was waiting for Gao Yang's explanation.

The shareholding structure of 51 Guardian is that 51 Group holds 60% of the shares, the original Weidian software entrepreneurial team headed by Liu Xu holds 20% of the shares, Baidu and Yiwang each hold 10% of the shares.

Gao Yang needs to convince Ding Lei and Li Yan to support him before he can hold a meeting within the 51 Group to convince other executives and directors.

Gao Yang explained:
"Brother Lei, Brother Yan, you all know that the principle of 51 Group's capital operation is not to accept VC capital, and the various platform companies have not designed a VIE structure, and they have not sought to arrange a NASDAQ listing.

As far as the 51 Guardian project alone is concerned, although the desktop client product has more than 5000 million users, under the free model, it has hardly generated much cash flow in this year, mainly relying on advertising revenue to generate cash flow.

Recently, because of the payment tool 51pay, I began to try to provide some value-added services for users. No matter how well this part is done, there will not be much cash flow.

Over the past year, this project has generated more than 400 million yuan in cash flow, 300 million yuan in advertising revenue from desktop products, and more than 100 million yuan from enterprise-level products.

Under the 51 Group's system, this project's main business can meet the performance requirements of an A-share IPO. It is estimated that it will take at least three to five years.

Now that it is transferred out, it can realize part of the investment income. At the same time, the company that is willing to take over 51 Guardians can go for a Nasdaq IPO. It is estimated that two years will be enough for development.

My idea is that 51 Guardians is not sold as a whole, but the business of desktop products is transferred, and 51 Group just gives up the controlling stake and retains about 20% of the minority shares.

The 51 Guardian project is still retained, but the desktop market is abandoned and the focus is on the enterprise market..."

Ding Lei shook his head and smiled: "Gao Yang, if you operate in this way, you can indeed reap a lot of investment income in the short term, and there will be many potential buyers.

Just giving up such a very potential traffic platform is not cost-effective in the long run.

In a few years, it will be no problem for 51 Guardians to grow to two to three hundred million users in the desktop market, and the valuation will be at least several billion at that time.

Besides, the sale of 51 Guardian desktop products also violates the platform layout you originally planned for 51 Group. "

Gao Yang said: "Brother Lei, this is my plan. 51 Group will give up its controlling position in the area of ​​desktop-level free antivirus software, and become a minority investor, and get a certain investment income first.

Traffic platform, I am going to create a new project, to be a news portal..."

Ding Lei almost spouted tea: "You bastard, you still can't forget about the portal website!"

Gao Yang smiled and said: "Brother Lei, I didn't come here for you, Yiwang. The news portal has always been the strongest in Xinglang, and your Yiwang's main business is games.

I didn't go for Xinglang either. 51 Group has always been targeting Goose Factory. I thought about it again and again. The news website of Goose Factory has been launched for almost 3 years. Although it is positioned as an entertainment portal website, the news attribute is getting stronger and stronger.

51 Group's overall strategic layout direction has always been pan-media, without an authentic news website, which is inappropriate and a major deficiency.

In this sense, this news website has more strategic value for the future development of 51 Group. "

Li Yan shook his head: "I still feel something is wrong, Gao Yang, since the 51 Group has no financial problems, you can completely build a news website without giving up the platform of free antivirus software. What are you planning? Can you be more specific?"

Gao Yang said: "I am preparing for the future PK with Goose Factory. Goose Factory has recently entered the free antivirus software market and launched QQ Doctor.

Now, the public beta version of QQ doctor is still very low-level compared to 51 guards, but they are here for 51 guards.

With the advantages of QQ's user scale, it is estimated that QQ Doctor's user development and product iteration will be very fast. In less than a year or two, it may be almost the same as 51 Guardians, and it will pose a threat to 51 Guardians.

With the habit of the goose factory, there is a high probability that they will take advantage of the traffic and actively attack 51 guards. At that time, there will be no two tigers in one mountain, and 51 guards will probably suffer a big loss. "

Ding Lei laughed and said, "So that's it, so you're still afraid of fighting Goose Factory here?"

Gao Yang said with a smile: "I'm not afraid, it's just that I don't fight a battle that I'm not sure of, and I'm not prepared. The PK between 51 Guards and Goose Factory is inevitable, so I hope there is a more dedicated company to come Fight this arena with the goose factory.

At that time, the 51 Group will stand behind and support, and then burn the flames of war to other competing platform projects. If you want to PK, you must PK a big one.

51 guards, just play the role of a forward. "

Li Yan smiled and said, "It turns out that you were the plotter. Since the 51 Group is willing to give up the free antivirus software as a traffic portal, how about Baidu coming to pick it up?"

Ding Lei said: "Gao Yang, Yiwang can also take over."

Gao Yang shook his head: "Baidu and Yiwang are not suitable, let you control this traffic platform, 51 Group might as well stay and continue to do it. The partner I hope needs to focus on desktop-level free antivirus software."

Ding Lei suddenly became curious: "Have you found a partner?"

Gao Yang said: "I have a goal, but I haven't contacted it yet. I thought over and over again. The most suitable one is Zou Hongwei from Qihu Technology. This person should be the best at this. You should also know him better."

Both Ding Lei and Li Yan suddenly realized.

Ding Lei asked: "Gao Yang, how do you plan to transfer the 51 Guardian desktop business, and how do you value it specifically?"

Gao Yang said: "51 Guardians already has 5000 million registered users, Brother Lei, is it okay to have a valuation of 1.5 million US dollars?"

Ding Lei nodded: "It's definitely not a problem, and it's obviously low. In 2003, Zou Hongwei sold 3271 to Yahu, and Yahu gave it 1.2 million US dollars. I think, based on the user scale and industry status of 51 Guardians, A valuation of $2 million is not high.”

Gao Yang said: "Then let's talk at a valuation of 2 million US dollars. I plan to sell 51% of the equity in 40 Group, and I will also suggest Brother Xu to sell part of the equity. In addition, I also propose to sell part of the equity in Yiwang and Baidu. In general, give Zou Hongwei 55% or even 60% of the equity.”

Ding Lei shook his head: "It's unrealistic, Gao Yang, I understand what you mean.

Zou Hongwei recently launched a 369 safe browser. This product is quite amazing, and it is very hopeful that it will become a popular application.

If Zou Hongwei takes over the controlling stake in 51 Guardians and paired with this browser, there will be a lot of room for traffic development, and he can also achieve the focus you mentioned.

If it develops well, in two or three years, it is really hopeful to apply for an IPO on Nasdaq.

The problem is, it will cost 51 million US dollars to take over 60% of 1.2 Guardians, and Zou Hongwei does not have the financial resources. "

Gao Yang smiled and said: "Brother Lei, he can go to VC institutions for cooperation, and I can help him introduce one. As long as 51 Guardians is willing to introduce VC capital, there will be many institutions that want to invest.

Qihu Technology is equivalent to A-round financing, cooperating with VC institutions to win 51 Guardians.

After developing for a period of time, using 51 guards, our three companies can also help him promote it, and bring his 369 safe browser as soon as possible.

At this point, Qihu Technology will soon be able to conduct B-round financing.

In three years, if Qihu Technology can go public on NASDAQ, it will be a win-win situation for all our participants..."

Ding Lei and Li Yan looked at each other and smiled, Ding Lei said: "The valuation is 2 million U.S. dollars, and Zou Hongwei is looking for a VC agency to cooperate and spend 1.2 million U.S. dollars to take over 60% of the equity. He personally needs 25% to 30% of the equity. Bar.

I estimate that he probably wants 30% of the equity, which is 6000 million US dollars, and it is likely that most of his net worth will need to be bet. "

Gao Yang said with a smile: "Brother Lei, I think that even if Zou Hongwei needs to bet all his wealth, he is probably willing..."

(End of this chapter)