Media Tycoon since 1999

Chapter 530 7 million, is it enough?

On the morning of November 11th, in Shanghai, Shanda Group headquarters, the boss Chen Qiaotian sat in a luxurious office and formally met with Xu Xin and Li Qin, who came to visit on behalf of the 19 Group.

After entering the room, Xu Xin glanced at the 80-square-meter office. The whole set of red sandalwood office furniture was probably worth over [-] million yuan.

It is much more luxurious than Gao Yang's office.

Xu Xin also noticed that the 34-year-old Boss Chen, who is not tall and only one year older than Gao Yang, has already started to put on weight. More than years.

Gao Yang's face and figure did not look like a 33-year-old man, but a 27-year-old boy.

A few days ago, when Li Qin contacted Chen Qiaotian's assistant, he made an appointment to visit Boss Chen.

When the assistant reported to Chen Qiaotian, Chen Qiaotian was also very surprised, but quickly agreed.

51 Group is already one of the giant Internet companies in China, so Chen Qiaotian will naturally save face. The person who asked to meet on behalf of 51 Group was Xu Xin, the chief investment officer, which also made Chen Qiaotian quite curious.

Today, Venture Capital invested 2000 million US dollars in Jingdong Mall, and then invested 3000 million US dollars, and joined hands with Zhou Hongwei, who is riding a tiger, to take over the desktop anti-virus business of 51 Guardians, which also made Xu Xin twice a news figure in the VC circle.

Chen Qiaotian invited Xu Xin and Li Qin to sit down in front of a red sandalwood root carving tea tray, and asked with a smile, "Why did Mr. Xu join 51 Group, such a famous investor?"

Xu Xin smiled and said, "The 51 Group has established an investment center, and Mr. Gao invited me to help him manage this work. I have some connections with Mr. Gao's family, and the kindness is hard to refuse."

Chen Qiaotian asked again: "The 51 Group established an investment center, what exactly does it do?"

Xu Xindao: "It is mainly to coordinate the investment business in three major directions, new project investment within the group, external investment and mergers and acquisitions, and the operation of an Internet venture capital fund.

Mr. Chen, we are here on behalf of the 51 Group, and we hope to purchase Qidian Literature, an online literature platform under Shanda. "

Chen Qiaotian was stunned, and then smiled and said, "Original literature is also Shanda's strategic development direction. Why does 51 Group think that Shanda will sell it as a starting point?"

Xu Xin said: "Mr. Chen, Shanda's main business is games, not the Internet.

51 Group plans to carry out strategic expansion in the direction of pan-entertainment, and original literature is an important part of it.

In this area, 51 Group has a great platform advantage and is determined to invest heavily.

Mr. Chen, any transaction can be negotiated, and the 51 Group has enough sincerity. "

Chen Qiaotian was immediately happy: "In Mr. Xu's eyes, isn't Shanda an Internet company?"

Xu Xin said: "Mr. Chen, with all due respect, Shanda does not yet have the true core of an Internet company.

In my opinion, the core of Internet companies lies in user traffic and innovation ability. This is the real meaning of the web2.0 era.

51 Group's layout in the Internet field, user scale and innovation capabilities are second to none in China, and it is also the best Internet company in China.

Shanda is essentially a game company, and now it is emphasizing the 3C development strategy, not a pure Internet business model.

51 Group's expansion into the online text market is logical and a matter of course.

Shanda’s acquisition of Qidian Literature at the beginning was more like a diversified investment. Qidian has been operating under Shanda’s banner until now, but it has not been successful.

Compared with 51 Group, Shanda does not have corresponding Internet platform resources to support it, nor is it complementary to Shanda's game business.

If Shanda follows the current operating idea, it will be more difficult if it wants to become bigger and stronger in the field of online original literature.

In my eyes, there are only two companies in China that can make a big web platform, one is 51 Group, and the other is Goose Factory.

Both companies are platform-based Internet companies. Compared with Goose Factory, 51 Group has a more perfect layout in the direction of the Internet and has greater advantages.

Neither of these two companies is able to compete with Shanda in the direction of original online literature..."

Chen Qiaotian chuckled: "President Xu, I admit that both 51 Group and Goose Factory have strong platform advantages.

It's just that Goose Factory has been listed for 3 and a half years, and its stock market value has increased more than ten times, to more than 50 billion US dollars.

Shanda has also been listed for more than 3 years. The current stock market value is about 16 billion US dollars, and the company still has billions in cash.

51 Group does not have a listed company yet, so how can it be compared with Goose Factory. "

Xu Xin just smiled slightly:
"Mr. Chen, China's Internet company, Ali is currently the strongest on the surface.

Ali has just been listed on the Hong Kong stock market, and the stock market value is as high as 200 billion US dollars.

In fact, according to the revenue scale disclosed in Ali’s prospectus, it is less than two-thirds of that of 51 Group.

51 Group has no shortage of capital, so it is not in a hurry to promote the listing and financing of various Internet platform companies. "

Chen Qiaotian looked surprised: "The 51 Group has such strong capital?"

Xu Xin said: "Yes, for 51 Group, the most convenient way to enter the online literature market is to acquire and control a number of start-up platforms, then inject capital to strengthen them, and then open up various platforms and integrate them under the big platform of 51 Literature .

51 Literature can invest a large amount of money, and can also withstand large losses in the initial stage. There is no shortage of resources such as capital, platform, and technology. It has the strength to attract a large number of excellent online writers, and can also import huge user traffic.

The goal of 51 Literature is to promote the prosperity of this industry and become the largest online platform for original literature. In the future, it will gradually promote Chinese original literature to go overseas, develop overseas markets, and promote Chinese culture. "

Chen Qiaotian asked curiously: "The online literature market has developed relatively fast in recent years, but the business model is still immature, and it is difficult to make money. What is the strategic purpose of 51 Group's entry into this market? Can Mr. Xu reveal one or two things?"

Xu Xin said: "51 Group has completed its layout on social media and pan-media platforms, and now it is going to further extend to pan-entertainment.

Original literature platforms, entertainment brokerages, film and television dramas, movie theaters, online music, and video sites are all pan-entertainment business directions that 51 Group plans to invest in. They also strive to become the largest in the country and cultivate several listed companies.

51 Group's investment layout in the direction of pan-entertainment is closely linked to each other, and finally forms a closed-loop business system. The original literature platform is one of the important starting points of this system.

Therefore, the original literature market is a must for 51 Group, and it will spare no expense. We hope to cooperate with Shanda in this area, rather than compete.

51 Group does not seek to acquire Qidian Literature as a whole, but only needs a large percentage of absolute holdings to cooperate with Shanda for a win-win situation. "

Chen Qiaotian smiled slightly: "President Xu, what percentage of the 51 Group do you want to control, and what price are you willing to pay?"

Xu Xin said: "The 51 Group hopes to hold about 70% of the shares. We estimate from the public information we have learned that Shanda's total investment will not exceed 04 million after the acquisition starting point in 1.6.

51 Group can acquire at a substantial premium, giving Qidian Literature an overall valuation of 5 million yuan. "

Chen Qiaotian joked: "Mr. Xu, although Qidian is not making money at the moment, and is even losing money, it is growing very well. With a valuation of 5 million, if Shanda is willing to transfer publicly, it will only lead to looting."

Xu Xin asked: "Mr. Chen thinks the valuation is low, so we can give 7 million yuan. Shanda holds 90% of Qidian Literature's shares, transfers 70%, and gets 4.9 million yuan in cash. In 3 years, the net investment income 3.3 million is already very high."

(End of this chapter)