My rebirth is different

Chapter 751 Facebook is going public

It's a pity that Facebook didn't accept advertisements before, which made brand owners very anxious. Now, Facebook has also started accepting advertisements, and many brand companies rushed to advertise.

Given the huge amount of traffic on Facebook, advertising costs will certainly not be cheap.

Facebook only took out a few positions in the hotspot rankings and a few fixed positions on the information flow recommendation page to advertise.

On the hot list, only soft advertisements are made, presented in the form of soft articles or news.

On the information flow recommendation page, some places try to use FLASH advertisements, which are more advanced.

It is a visual video, but it does not require as much bandwidth as traditional videos, and it can be loaded very quickly, which makes the advertising effect better.

After all, video shows more than words and pictures.

Whether it is on the hotspot list or the fixed position on the information flow recommendation page, these advertising positions are all expensive and billed by the day!

In China, Facebook has long been the number one website in terms of the number of registered users, the number of active users, and the length of time users stay.And it's far, far away from No.2!

Even among all the websites in the world, Facebook auctions are among the top three. It can be said that apart from Yahoo and Google, there is no website with more traffic than it.

Advertise on such a website, and when the advertising space is relatively scarce, the price can be imagined.

Facebook can also be considered to have income, and it is a lot of income. A mature profit model has emerged, and the future can be expected.

Therefore, the time for Facebook to go public is ripe and the pace can be accelerated.

………………

On the fifth day of the Lunar New Year, most of the employees had not yet returned to work in the company. Yu Wenfei once again convened the shareholders of Facebook and held the last shareholder meeting before listing.

Although in terms of organizational structure, Facebook is a subsidiary of Facebook Holdings, but in terms of equity relationship, several companies are independent.

After several rounds of financing and share expansion, Facebook's shareholding structure has changed many times.

Up to now, the total share capital of Facebook is 1000 million shares.

Yuwenfei is still the largest shareholder, holding 6000 million shares.

Modu International Trust and Investment Company is the second largest shareholder, holding 900 million shares.

Citibank became the third largest shareholder, holding 1000 million shares.

Softbank Capital retreated to fourth place, holding 900 million shares.

Cai Congxin and Jiaotong University Venture Capital tied for fifth place, each with 100 million shares.

In addition, 1000 million employee incentive shares have been reserved, some of which will be given to old employees when they wait for the listing, and some will be reserved to attract high-level talents to join in the future.

Of course, when it is officially listed, the company will still have to expand its shares again for listing and financing.

The main issues discussed at this shareholders' meeting are how much shares to expand when listing; how to set the stock price when listing; which employees can get the original shares, these three major issues.

In fact, the first two questions can be summed up as one question, both of which are based on how to correctly value the Facebook company.

…………

"What is the valuation of Facebook?" Yu Wenfei raised this question at the beginning of the meeting.

As for the valuation of unlisted companies, Softbank and Citigroup are both experts in this regard, and of course the representatives of these two companies took the lead in speaking.

Softbank Capital is of course Xue Chunlai’s representative. After hearing Yu Wenfei’s question, he replied without hesitation: “Start with 150 billion US dollars!”

The representative of Citibank immediately nodded in agreement and said, "Yes, our latest valuation is 150 billion US dollars."

Yu Wenfei was a little surprised. He remembered that at the last financing, Facebook’s valuation was less than 100 billion. Why did it increase by several billion dollars after half a year.

Billions of U.S. dollars, it sounds flimsy to say, but converted into RMB, it is tens of billions!

Domestic Internet companies, except for Facebook companies, there are not many other companies that even exceed 50 billion US dollars.

"Is there any basis for this valuation? Will investors recognize it?" Yu Wenfei asked.

"Don't worry, Mr. Fei. After Facebook's advertising channels are released recently, the profit prospects are good. I have communicated with institutional investors in Europe and the United States. They all expressed that they are very optimistic about the future of Facebook, and they have no idea about the valuation of 150 billion US dollars. Any objection. You know, the same group of people, I communicated with them two months ago, and they were a little hesitant about the valuation of 100 billion US dollars." The representative of Citibank said with a smile.

"It's not just advertising revenue, but also a profit model. In fact, Facebook's influence and imagination on the Internet are also very large. After all, Facebook has even become synonymous with online media, and it has a worldwide presence. Inside, Facebook is in a class of its own.

Originally, relying on the imagination of this model alone was enough to support a valuation of 100 billion US dollars.In addition, although Facebook Entertainment can't see any hope of profit in the short term, and it only has investment and no income, but in the long run, it is also a near-monopoly industry leader!
At present, the country does not pay much attention to the copyright of songs, movies and TV, so this is what investors are worried about.If it is placed in European and American countries, if Facebook Entertainment alone has a large-scale monopoly on music, film and television copyrights, the valuation can be worth billions of dollars. "Xue Chunlai added.

Yu Wenfei nodded. There is really nothing to say about this. Regarding the issue of intellectual property rights, not to mention in 2004, even if it is more than ten or twenty years later, the country has not paid much attention to it.

At this point, it often becomes the place where other countries accuse us.

The frustrating thing is that when someone accuses you, you still can't refute it.

Because it is true that many citizens have no so-called knowledge products and copyright awareness at all, and piracy is rampant on the Internet. Many people are not ashamed of piracy, but proud of it!

Facebook Entertainment is just a pawn laid out in advance, it will take some time to play its due role, and there is no rush now.

This means that in Facebook, a project that burns money like Facebook Entertainment cannot be supported by any other company. It has invested hundreds of millions of dollars just to buy copyrights, and it will continue to invest a lot of money in the purchase of new film and television drama copyrights.

Yu Wenfei also thought about whether some of his plans were too early, but in the end he thought it was right to do so.

Because of many things, you only have the opportunity to get involved at a specific time. If you miss that time, if you want to do it again, you may need to spend an unknown amount of money and energy.

Let’s just do it first, anyway, the Facebook company is not short of money, and the money burned was given by venture capital institutions, so don’t feel bad!
(End of this chapter)