Perfection of Rebirth

Chapter 505 Unicorn Enterprise

Google's position in the US Internet industry is very special, and it is also very popular with the investment community. If Tudou.com's US branch can introduce Google as a shareholder, it will be very beneficial to the company's development in Europe and the United States and its future listing.

As a company with a Chinese background, Tudou.com has grown to its current scale. If it does not attract some investors with American backgrounds, it is very likely that its development in the United States will be disturbed, and even the US government will come forward to trip it up.The most typical example of later generations is the various obstacles Huawei encountered in entering the US market.

As China's most famous communication equipment supplier, Huawei has been dealing with the US government for a long time, and it can be called an "old athlete".Huawei was forced to temporarily abandon the US market due to repeated deliberate suppression by the US government. In 2010, Huawei tried to acquire Motorola's wireless network business, but in the end the U.S. government rejected the deal on the grounds of "national security"; after 2012, the U.S. government intensified, and the U.S. House of Representatives issued a report affirming that Huawei and ZTE constitute national security for the United States risk, and may have violated US laws; in 2013, US President *** signed a bill requiring relevant US government departments not to purchase information technology system equipment privately, especially to formally evaluate the equipment produced by Tianchao Company.

This bill restricts Huawei from expanding its main business to the US market, which is the sale of communication network equipment.As a result, in the U.S. market, the four major U.S. telecom operators have excluded Huawei's system equipment from the bidding list.

Although Tudou.com, as an Internet company, is not as sensitive as a communication company like Huawei.But it's not easy to find trouble?Therefore, it is also a good choice to transfer part of the shares to Google, which has a strong background.

"Google originally wanted to buy Tudou.com's U.S. branch wholly, but Mr. Jiang should not approve of this plan. We have researched the shareholder information of Tudou.com's U.S. branch. Although there is no final result, I believe that Jiang It should always hold the vast majority of the shares, right?" Page said.

"How many shares I hold is not the point. You just need to know that I can decide Tudou's affairs." Jiang Hui didn't directly answer Page's question.

"OK, I understand what you mean. 30%, we Google only need [-]% of the shares of Tudou, and we are willing to accept a valuation of up to [-] billion US dollars," Page began to explain Google's plan.

The valuation of 30 billion US dollars cannot be considered high, but it cannot be said to be low either.For an Internet company that has only been established for more than two years, it can be regarded as particularly good to have this value.

"How Much Is Google Ready To Premium?".

A premium acquisition refers to the part of the value that the acquirer company pays to the shareholders of the target company that is higher than its market price in order to obtain the equity of the target company.According to Wall Street's M&A theory, the main reason why the M&A company pays a premium to the target company in the company's M&A is due to the target company's development prospects and the synergistic effect generated after being merged.

"One billion US dollars in exchange for [-]% of the shares of Tudou.com, are you satisfied with this premium?".

"Page, don't you think unicorn companies like Tudou should have a higher premium?"

"Unicorn enterprise? What do you mean?".

The unicorn is a creature in myth and legend, it is rare and noble.In 2013, the famous American investor Aileen Lee classified the start-up companies with a valuation of more than 10 billion US dollars in private equity and public markets, and called these companies "unicorns".Then the term quickly caught on in Silicon Valley and appeared on the cover of Fortune.

所谓“独角兽公司”是指那些估值达到10亿美元以上的初创企业。Lee发明独角兽概念的时候，她描绘的是一个具体历史条件下的情形。在2003到2013年间，就只有39家公司从6万多的竞争者中脱颖而出，实现了估值达到10亿美元+。

Jiang Hui introduced the concept of "unicorn enterprise" in advance, and Guanghui Group is not the only unicorn like Tudou. If this concept is quickly accepted by Silicon Valley, the valuation of the companies under Guanghui Group will also be huge. beneficial.

This is equivalent to invisibly dividing various companies into unicorn companies and other companies, and the levels are pulled apart at once.

"The so-called unicorn company firstly means that the valuation must exceed the standard of 10 billion US dollars, and it has not been established for a long time; in addition, when the products brought by the unicorn company first appeared, people thought it was unbelievable, but when After people get used to this method, they will feel accustomed to it and indispensable,” Jiang Hui explained to Page.

"This word seems to be good, so Google can be regarded as a former unicorn enterprise."

"Must be".

"Jiang, although Tudou.com is a unicorn company, our investment of one billion US dollars is not low. It can even be said that this is the world's largest share acquisition among Internet companies this year."

"If Google can accept that half of the shares have no voting rights, then I agree with your plan in principle."

"Jiang, your request is too embarrassing for me. But if you allow us to use Google's stock for swap, then I have no objection."

"If you want to use Google's stock to exchange, then I ask for a premium of 2 times, otherwise you must all cash."

"Jiang, do you think Google's stock price is inflated?".

"Google's stock price will definitely be much higher than it is now in the future, but judging from the current situation, it is a bit high."

Google's revenue will continue to increase in the next four or five years, but its stock price has barely risen much, and it did not re-enter the fast lane until 2013.In Jiang Hui's view, it is because Google's stock price has been too wet in the past two years.

"The requirement of twice the premium is too high, and the board of directors will not agree. So, let's follow the plan you said, but Google will send a vice president and financial personnel to Tudou."

"No problem, but can you interfere with the company's development plan, unless the company's actions clearly damage Google's interests."

"Of course, Google is only a minority shareholder in Tudou, and we will do our part as a minority shareholder."

"Thirty percent shares, this is already the largest shareholder of Tudou.com's US branch, not a minority shareholder," Jiang Hui said with a smile.

"Jiang, what you said is insulting my IQ, and I'm fined with a glass of wine," Page said.

Although the various offshore companies in Tudou.com do not hold more than ten points of shares, but because Jiang Hui controls them behind the scenes, in fact, the rights of Tudou.com are still in Jiang Hui's hands.

"Happy cooperation," Jiang Hui said with a smile, raising his glass.

"Happy cooperation"!
(End of this chapter)