Media Tycoon since 1999

Chapter 528 Sky-high price acquisition
Tonight, when Gao Yang was eating and drinking with Li Lianjie and others, Xu Xin, the group's chief investment officer, and Li Qin, the administrative director of the investment center, also had dinner.

The dinner was held in Pingjiang City, Jiangsu Province, a five-star hotel in the city center.

The guest invited by Li Qin is Bao Weikang, the founder of Xiaoxiang Literature Network.

The director of the second department of the investment center in charge of foreign mergers and acquisitions is not yet in place, so Xu Xin can only personally discuss this small business.

Xiaoxiang Literature has been established for more than 6 years. It is one of the earliest platforms in the online literature industry to implement paid subscriptions. Its revenue this year is only 600 million. It is already a very bad financial situation to barely maintain no loss.

Bao Weikang never expected that such a behemoth as the 51 Group would be interested in an online platform like Xiaoxiang, which mainly has female readers.

Bao Weikang raised his red wine glass, toasted Xu Xin and Li Qin, and said with some doubts: "Mr. Xu, Mr. Li, 51 Group is a big company engaged in social media and pan-media platforms, and they also want to enter the field of online literature? "

Li Qin explained: "Mr. Bao, at the beginning of our 51 Group's establishment, in the Internet industry, we determined a development strategy with social networking as the core and pan-media as the main direction.

Now, our platform layout has been basically completed, and we have begun to develop in the direction of pan-entertainment.

Online games, online literature, film and television entertainment, movie theaters, online music, and online video are all new business directions for 51 Group.

According to our high-level plan, the 51 series will build a pan-entertainment business group.

In the field of online literature, our goal is to build the largest original literature platform in the industry with the strongest operational capabilities, promote and encourage the development of Chinese online literature, and cultivate an IP pool of original boutique stories.

Based on this IP pool, we will expand to the field of peripheral derivative products such as physical publishing, film and television, animation and game adaptation..."

Bao Weikang said: "The 51 Group's plan for online literature is very similar to Shanda's."

Xu Xin smiled slightly: "Mr. Bao, 51 Group plans to invest more than 50 billion in the direction of pan-entertainment businesses such as online literature, film and television entertainment, and movie theaters within three to five years.

51 Group has nearly 9 million user traffic in the direction of social and pan-media platforms. How can Shanda be compared with 51 Group. "

Bao Weikang was surprised: "The 51 Group already has such a strong strength?"

Xu Xin smiled and said: "President Bao, the strength of 51 Group is far beyond your imagination. It is not an exaggeration to say that it is the Internet company with the strongest strength, the strongest innovation ability, and the most perfect layout in China.

In the field of online articles, the goal of the 51 series is to build and cultivate a business group, and it will take five to six years to develop to the level of listing and financing.

51 Group hopes to acquire the Xiaoxiang Literature platform, and it is very sincere. Bao Zong's operation team can keep and continue to operate this platform.

After the acquisition is completed, 51 Group will inject capital, so that Mr. Bao can let go of his hands and feet and do a big job.

For Xiaoxiang Literature, 51 Group does not seek to hold all the shares, we only need to hold 70% to 80%.

On the basis of incorporating the internal management system of 51 Literature, we strongly support the independent operation of Xiaoxiang Literature, and at the same time open up other online literature platforms of the company to attract traffic and develop together. "

Bao Weikang was a little tempted, and said: "Mr. Xu, Mr. Li, thank you for the love of 51 Group. I have always admired and admired 51 Group.

I need to retain at least 30% of Xiaoxiang’s equity. May I ask, how much does 51 Group plan to value Xiaoxiang? "

Xu Xin asked with a smile: "Mr. Bao might as well talk about your thoughts directly."

Bao Weikang thought about it, and boldly said: "I hope the overall valuation is 2000 million, which is equivalent to a little more than three times this year's revenue."

Xu Xin smiled slightly: "No problem, let's value it at 2000 million. Does Mr. Bao have to keep 30% of the equity?"

Bao Weikang held back his excitement, thought for a while, and said, "Mr. Xu, I can take a step back and keep 25% of the shares. This is also the bottom line."

Xu Xin said: "Okay, Mr. Bao, I hope we can cooperate happily. We will notify the company's legal department to prepare the agreement tomorrow, complete the due diligence and sign the agreement as soon as possible, and try to complete the acquisition in about a week. What do you think?"

Bao Weikang said: "President Xu, no problem, we absolutely cooperate.

Xiaoxiang Literature is currently short of development funds, so it is a little bit tied, how much money can the 51 Group inject in after the acquisition is completed? "

Xu Xin smiled slightly: "First inject 5000 million, is that enough?"

Bao Weikang said happily: "That's enough, 5000 million funds will allow Xiaoxiang to quickly step up to a new level and enter a stage of rapid growth."

Bao Weikang didn't expect at all that when he quoted a sky-high valuation of 2000 million yuan, 51 Group immediately agreed.

He never thought that in Xu Xin's eyes, the acquisition of 1500 was just a small business.

Gao Yang gave Xu Xin complete negotiation authority, and Xu Xin was unwilling to waste time on M&A negotiations on a small platform like Xiaoxiang Literature.

Xu Xin has to rush to complete the negotiation to acquire Qidian Literature, which is the key point.

After that, there is a more important task, which is to find Hua Wei Company and seek cooperation in mobile phone investment projects.

For Xu Xin, the recent time is very tight, and the negotiation for the acquisition of Qidian Literature needs to be completed as soon as possible.

As for whether it would fail, Xu Xin never thought about it.

According to Gao Yang's intention, if he is determined to win Qidian Literature, he just needs to add money all the way during the negotiation, which will always make Shanda Boss Chen tempted.

Next, Xu Xin had a good talk with Bao Weikang, and the M&A signing process will be advanced, and the legal department of 51 Group will send people to coordinate.

After 9 o'clock in the evening, Gao Yang had just returned home when he received a call from Xu Xin:
"Gao Yang, we have already negotiated with Bao Weikang, the founder of Xiaoxiang Literature, to acquire 1500% of Xiaoxiang's shares for 75 million.

The overall valuation of Xiaoxiang is 2000 million, which is a sky-high price. Its revenue this year is expected to be around 600 million, and its net profit will not exceed 30. "

Gao Yang smiled and said: "Sister Xin, you have worked hard, the sky-high price is the sky-high price, what we are buying is the future, not the present."

Xu Xin said: "Tomorrow, we will leave for Shanghai, and we have made an appointment to visit Shanda's Boss Chen on Monday. Shanda is in full swing now, the cash flow of the game business is very strong, Boss Chen is worth tens of billions, and Shanda also holds several One billion in cash, I'm afraid it's hard to talk about."

Gao Yang said: "It's okay, sister Xin, we can just give a price that satisfies Boss Chen."

Xu Xin asked: "In terms of quotation, what is your highest bottom line?"

Gao Yang thought about it, and said: "Sister Xin, within 10 billion, you can make a decision on the fly."

Xu Xin smiled and said, "What I'm waiting for is your words."

On November 11, Xu Xin and Li Qin set off to Shanghai again, seeking to get in touch with the main founder of Qidian Literature first, and then visited Chen Qiaotian, the boss of Shanda Company, and directly proposed the acquisition of Qidian Literature.

(End of this chapter)