Actually I just want to act

Chapter 876 Wholly-owned mergers and acquisitions
"Taobao...is developing too fast!"

At the headquarters of Dingding.com, Li Xiuqin has already gone to work.After all, the Lantern Festival is over, so why not go to work?It's just that Li Xiuqin realized that something was wrong. The rapid development of Taobao made him feel great pressure.Indeed, although there are several domestic e-commerce companies, none of them are successful.

In this environment, Dingding.com is doing pretty well.

Although I can't make a lot of money, I can live a small life and develop slowly.

But after Taobao was established, it quickly rewrote the rules of the industry.What free shipping, what purchase restrictions, a lot of tricks.

The most important thing is that users are still buying it!This made Li Xiuqin very uncomfortable, so he recruited Tao Chenyao, the boss of Yiqu.com, and Ning Wenkang, the boss of Skynet.

"Old Tao, you don't have any face right now. Fang Zhiming's Taobao website is going to kill you." Li Xiuqin said jokingly, he knew that Tao Chenyao was much more anxious than himself.

In fact, Tao Chenyao is not in a hurry, because the acquisition of Aimeixun has come to an end.If nothing else, the entire acquisition will be completed next year.

Tao Chenyao said calmly: "I think it's pretty good. The cakes purchased online are too small now. After making the cakes bigger, everyone will share and eat more happily."

Li Xiuqin didn't expect Tao Chenyao's attitude, but he wasn't too surprised, because now Taobao has left Yiqu.com by a long way. "Old Tao, you really like to joke. If you lose your market share, your business financing will become difficult!" Li Xiuqin said this, and Tao Chenyao's face changed a little.

Yes, before Aimeixun not only approached Yiqu.com, but also went to Skynet, talking about the acquisition.It's just that I might not have reached an agreement with Ning Wenkang later, so the next step is to find Yiqu.com.

In fact, Aimexun proposed three entry modes to enter Yiqu.com.The first one is Aimexun’s investment in Yiqu.com, which is general financing.The second is that Aimeixun holds the majority stake in Yiqu.com.The third option is that Aimeixun wholly acquires Yiqu.com, transforming Yiqu.com into a springboard for Aimeixun to enter the Chinese market.

The first one was proposed by other shareholders of Yiqu.com, but Aimixun failed.It's very simple, Amicun also took a fancy to the Chinese market, and they wanted to come in and get a share.Why invest in an online shopping website? With this energy and money, Aimexun can build a branch website by itself.Therefore, what Aimeixun seeks is a strong entry without leaving any room.

The second one, did not pass through the inside of Yiqu.com.It's very simple, Aimeixun seeks a controlling stake, so what about the other shareholders of Yiqu.com?They are not Aimexun, rich and powerful.The strength of the capital of the two parties is very different. If Aimeixun wants to increase its capital and invest another [-] million dollars, will your other shareholders follow or not?If you can't keep up, you can only be kicked out.Even if Amicun does not take more actions, how can other shareholders cash out?You know, Aimeixun has no plans to list Yiqu online!Since sooner or later you will be expelled or locked up, it is better to give up now.

Therefore, the third type of wholly-owned mergers and acquisitions is a consensus that everyone has reached.In fact, financing from venture capital (VC) is also OK.Shareholders of Yiqu.com have an initial investment of 1600 million, and the shares are roughly 920-50.Later, VC invested [-] million US dollars successively, and diluted the shares of Yiqu.com shareholders to less than [-]%.However, if Interest.com wants to achieve stable profitability, it will need to invest at least tens of millions of dollars.

In fact, all shareholders cannot escape one result in the end: their shares are diluted, they lose their dominance, and they are out.

If you go back to five or six years ago, funding is not a problem.Crowds of VCs are chasing entrepreneurs to invest, tens of millions of dollars in exchange for only a small amount of shares.

It was at that time that Li Xiuqin, Ling Changyun, and Cheng Dongquan raised funds to start their own businesses, and they are still the major shareholders in charge of their own companies.

In 2000, when the Internet bubble burst, VC turned conservative.These shareholders paid their own money to build Yiqu.com, and VCs were willing to pay for it after it became established.This is difficult for shareholders to accept, so the two sides started a tug of war.

As for the usual financing channels, bank loans have never been used to save the poor, and in reality they have basically no connection with the Internet.

In fact, everyone who plays the Internet knows that Chinese Internet companies are all successful in playing Chinese games with foreign money.When starting a business, it relied on international VC financing, and then went public on NASDAQ when it scaled up, and the money earned was distributed to foreign shareholders.It has basically nothing to do with China's capital market.

Therefore, there are really not many choices for Yiqu.com, especially at this time, foreign venture capitalists (VC) have already tightened their wallets.

Aimeixun can be said to be the only choice for Yiqu.com, which has no prospect of listing. Therefore, after a long-term game, Tao Chenyao chose to accept Aimeixun's wholly-owned acquisition.How to cash out and whether you will be locked in will always be the first criterion for capital decision-making.

As the chairman, Tao Chenyao represents the cold will of capital; he is also the founder, from proposing ideas and starting a business when the Internet bubble burst, to going through several desperate moments, to the present.Tao Chenyao knew exactly how painful it was.Don't want to sell?Yes, but how does Yiqu.com make money?
Tao Chenyao is not Fang Jiming, he does not have a complete profit model.

Now Tao Chenyao finally understands why Fang Jiming said that finding a profit model is very important, which is related to the life and death of Internet companies.Indeed, if Yiqu.com has achieved breakeven, why would Tao Chenyao sell Yiqu.com?
Now the most critical issue is coming. Amyxun verbally agreed to the acquisition, but after all, there was no negotiation or contract.When Aimeixun agreed, it was when Yiqu.com ranked second in the domestic online shopping website.Now, Yiqu.com has fallen to the third place, and the profit situation is even worse. Will Aimeixun still buy it?

Tao Chenyao asked suddenly: "President Ning, what do you think?"

Ning Wenkang drank the red wine, and then said: "How can I see, see with my eyes!"

Li Xiuqin was taken aback for a moment, then frowned and said, "President Ning, this joke is not funny."

"Fang Zhiming's general trend is already established, unless he can raise more money, otherwise, he will not be able to compete at all." Ning Wenkang said with certainty, "Besides, I am also a latecomer to e-commerce, so I must not understand you. You can't figure it out, and you can't find me!" In fact, Ning Wenkang was the one who made a fortune silently.

Neither Li Xiuqin nor Tao Chenyao got the news. Ning Wenkang had reached a deal with eBay, and eBay wholly acquired Skynet.It's just that the two sides just haven't announced it to the outside world.

The capital of Eagle Sauce has entered China, this is an undoubted fact.

But no one can say how far Yingjiang's capital can go.The laws of the Chinese market are completely different from those of the eagle sauce market.

(End of this chapter)