China Entertainment: Starting from 07 Kuainan

Chapter 414: Brother Ma is in trouble

Listening to the blueprint outlined by Big Lao Wang, Lu Yuan did not express any objection.

Wanda's water was too deep for him to grasp.

Powerless and unwilling to pay attention.

All he has to do is guard his three-thirds of land.

After sending Big Pharaoh back to the hotel, Lu Yuan set off for the airport again.

This afternoon, Lu Yuan was only busy with one thing.

Pick up.

Let's chat by the way.

In the process of receiving Brother Ma, as expected, Brother Ma talked about strategic investment again.

After Tengxun Video was launched, Xiaoma Ge urgently needed to build a content production team.

Capital pays attention to efficiency. Cultivating something from scratch is too inefficient. It is better to use direct mergers and acquisitions or strategic investments.

Faced with Brother Xiao Ma's investment intention, Lu Yuan neither refused nor agreed.

Such an attitude is enough to explain a lot of things.

Brother Xiao Ma gave a brief taste and stopped after a few clicks. How can a super high-quality asset like Xingchen Media be so easy to invest in?

It's a seller's market.

After talking about this matter, Xiao Ma suddenly changed the subject and started talking about magnesium balls.

Hearing this, Lu Yuan also understood.

Xiao Ma's routines are also very deep.

Investing in Star Media emotionally is fake, but investing in Magnesium Group is real.

Time has entered 2011, and the trend of group buying has spread all over the world.

In just one year, the number of domestic group buying websites has exceeded 2, and it is still growing rapidly. Today, 3- group buying websites are launched almost every day.

The reason why group buying is booming is simple.

The business model is simple and replicable, and acts as a mediator between merchants and consumers by charging service fees.

Last year, Lashou.com, which was founded less than half a year ago, raised US$1000 million in investment in just four weeks.

A fabulous achievement!

Jinshajiang Venture Capital invested tens of millions of dollars to support Lashou.com.

Wowotuan, Manzuo.com, Lashou.com, Nuomi.com, Letao.com, 24Quan, etc., all the heroes came together to use investors' money to wildly enclose the land.

The leading group-buying website, relying on its strong cash-generating capabilities, quickly attracted thousands of local pushers.

In a barbaric growth environment, it is inevitable that there will be conflicts between the land push armies.

It is not uncommon to see news such as who is fighting with so and so today, and a brawl in a certain city tomorrow.

The number of complaints related to group buying is also increasing.

On the other hand, Magnesium Group, the earliest group-buying website in China, is still tepid. It has neither extensive publicity nor blindly burned money for expansion.

Under the splendid scene of burning oil, Magnesium Tuan is considered an anomaly.

However, if you do in-depth research, you can find an inconspicuous data. Among the group buying websites, Magnesium Group has the lowest complaint rate.

The unit price per customer is also relatively high.

Various Internet companies are vying for territory, and Tengxun naturally wants to get involved. In July last year, QQ group buying online was launched.

But the effect is good.

It's hard to say.

Group buying is not just an online business, it requires the cooperation of offline services, which is inconsistent with Tengxun's constitution.

If you can't beat it, then buy it!

Tengxun Strategic Investment Department approached Magnesium Group, but they replied that they were not short of money for the time being and had no financing plan. It is true that there is no shortage of money.

On this point, Lu Yuan, as an investor, has a better say.

Compared with those group-buying websites that are burning money to expand, Magnesium Group is still in the stage of hard work and has no large-scale publicity.

In addition to Lu Yuan, the major shareholder of Magnesium Group is Sequoia Capital. Magnesium Group’s angel round + Series A raised a total of US$1500 million.

One year later, there are still more than 1500 million US dollars left of the 500 million US dollars.

However, these more than 500 million won't last long.

Friendly businessmen are burning money endlessly, and even if Magnesium Group does not engage in large-scale subsidies, they will still be forced to respond. Recently, Magnesium Group has made plans to launch Series B financing.

In the B round of financing, Magnesium Group is expected to sell 25% of its equity and raise US$5000 million.

In other words, Magnesium Group is now valued at US$200 million.

Lu Yuan recognized this price, and he was prepared to invest 10 million yuan.

The share of "on the way" in the fourth quarter of 10 will be transferred to the account of Magnesium Group Company when it is transferred.

After the Series B financing, Lu Yuan's shareholding in Magnesium Group will drop to 32%, but based on the current valuation of US$2 million, the equity value has doubled.

"Brother Ma, the internal structure of Magnesium Group is A and B shares. There will definitely be no problem with the introduction, but I can't guarantee whether it will be successful."

Generally speaking, the company's shareholding structure is a unitary system, that is, all shares have the same rights. This shareholding structure is very unfriendly to Internet companies, especially start-up companies.

As a result, the AB share structure came into being.

AB shares have different rights. For example, Class A shares have 20 voting rights per share, while Class B shares have only 1 voting right.

In this way, founders can still hold enough voting rights even if they own a small number of shares. Companies such as Goudong and Magnesium Tuan have similar structures.

Lu Yuan did not refuse Xiao Ma's move to the Magnesium Group.

It can be one, but it cannot be two.

In fact, accepting Tengxun's shareholding is also a good choice.

In the previous life, the main reason why Magnesium Tuan joined the Ahri family first was because of Teng Xun's reputation.

In the past 10 years or so, Tengxun’s reputation has actually been very bad.

Electronic opium, plagiarism, copycats, abuse of industry monopoly status, etc. are all hats on Tengxun's head. On the other hand, Ali has a much better reputation.

Ahli Ma has appeared frequently, both in West Lake sword debates and in various business forums. From individuals to enterprises, its reputation and reputation have all been defeated by Penguin.

However, Magnesium Tuan eventually broke up with Ahri and fell in love with Penguin.

And this is precisely related to Ahri’s investment style.

Ahri likes to control, and if he controls anyone, he will die.

Tiantian Dongting, Xiami Music, Yahoo China, OFO, Yiguo Fresh, Kuaidi Taxi, Wandoujia, Koubei.com, one by one, they are all dead souls under the knife.

Companies such as Youku Tudou, Ele.me, Zude Maps, Jiuyou, etc. are also half-dead.

The reason why Ahri sucks blood is related to its innate attributes. Although Ahri has hundreds of millions of traffic portals, shopping is a low-frequency demand.

Except for some shop-goers, most users cannot use Taotao as frequently as they use Weixin and QQ.

Ahri needs matrix blood transfusion from its subsidiaries and needs more traffic entrances, while the Penguin series is the entrance to production traffic and can feed back the invested companies.

The different innate attributes also make the two camps have completely different operating styles. One is domination, grabbing traffic to monetize, and the other is win-win, providing dividends such as traffic and waiting for appreciation.

"Of course."

Brother Xiao Ma smiled slightly: "Making connections is enough. Whether you can become a shareholder depends on Tengxun's sincerity."

Although the situation is uncertain, Xiao Ma is very happy about this matter.

Lu Yuan has little contact with the Internet venture capital circle, but Xiao Ma Ge has more contact. The two collaborations between Lu Yuan and Wang Xing on Fanfou.com and Meituan.com are good stories in the venture capital circle.

Including those employees who transferred from Fanfou.com to Penguin Bib, they also have great senses about Lu Yuan.

(End of this chapter)