Perfection of Rebirth

Chapter 676 Postponement of Listing
Regardless of whether Zach is happy or not, Facebook's delay in listing has become a foregone conclusion.

In fact, even if Citibank is now encouraging Zach to go public, he has to think again.

Zach himself is full of confidence in Facebook, but because of his confidence, he does not want the company to be a "hormone" when the stock market is in a downturn, making his company a green leaf in red (the U.S. stock market is falling is red, rising It is green, which is just the opposite of the Celestial Dynasty).

"Go and find out, has Twitter's listing plan been delayed?" Zach asked Linda after complaining about Citibank.

If there's one company that has had a bigger impact on Facebook in the U.S., it's Twitter.

Although the positioning of the two is different, Facebook is more of a friend-oriented, private social tool, while Twitter is more of an open social platform.

However, the number and energy of netizens is fixed, and there will inevitably be selective investment in two websites that have a certain degree of overlap.

No matter which one you choose to invest more in, after all, no one can eat alone.

After hearing that Facebook was preparing to go public, Twitter also cooperated with Goldman Sachs to plan to log on to Nasdaq.

As "unicorn" companies in Silicon Valley, Facebook, Twitter and potato should be the three Internet companies that attract the most attention from American investors.

For potato, because of the VIP fee business and a large amount of advertising revenue, it has already achieved positive returns.

On the contrary, although Facebook and Twitter also have some advertising revenue, compared with server investment, they are still in the stage of burning money.

Although both have completed several rounds of financing and still have some funds in their accounts, it should be no problem to last until the end of this year.

However, if one of the two goes public first, it will inevitably raise a large amount of funds, and then a new round of money-burning games will definitely start.

If the financing is not successful, it is likely to be left behind by the other party.

This is what Zach doesn't want to see.

This is also an important reason why Twitter quickly followed up after seeing that Facebook was preparing to go public.

"This Charlie also mentioned it to me, but he also said that it was just a rumor. Even Goldman Sachs also suggested that Twitter postpone the listing. At this time, Nasdaq is very depressed. Even if it is successfully listed, it is estimated that the market will not perform well. OK," Linda replied.

"That's good, but we have to control the use of funds during this period, so as not to break the chain of funds."

With Facebook's current status in Silicon Valley, there is actually no need to worry about not being able to raise money, even though it is now the outbreak of the subprime mortgage crisis.

However, although money can be raised, it is hard to say what the price will be.In the past few months, no matter what conditions Zac proposed, there would be organizations to negotiate with, but now, don't try to make people accept too harsh conditions.

At critical moments, the rich are the uncle, and cash is king.

"Then should we temporarily suppress our expansion plan? This is the most capital-consuming business," Linda asked.

If Facebook wants to expand its business in new countries or regions, it is inevitable to invest in some software and hardware.

With the increase of new users, the corresponding demand for servers will also increase. Whether it is self-built or leased, this piece of money is a lot of money.

Originally, Zac wanted to use the financing amount to build his own data center after listing, so that the core data would not always be in the hands of others.

However, it now appears that the plan for data center construction will also be delayed.

In fact, this crisis not only affects the listing of Facebook and Twitter.

The listing plans of Qunar.com and Guanghui Weibo, which are far away in China, were also put on hold by Jiang Hui.

"Mr. Jiang, I think the impact of the subprime mortgage crisis will pass soon. The central banks of various countries are injecting funds into the market. There is no need for us to postpone the listing plan of Qunar.com, because even if everything goes well, we will have to buy it next year. I have just registered on Nasdaq for the first time”, Gao Peng, the general manager of Qunar.com, was a little bit unwilling to let his listing plan, which he had been planning for a year, be so stranded.

"Mr. Gao, don't worry. Qunar will definitely go public in the next three years after this wave of crisis is over," Jiang Hui said.

The beginning of next year will be when the subprime mortgage crisis is at its worst, and Jiang Hui doesn't want Qunar to recruit and die when the stock market is at its lowest.

You must know that the stock price of a long-established bank such as Citibank also fell to a record low at the beginning of next year. Compared with the market value at the beginning of 2007, it fell by [-]%.

By the end of next year, the market value of Huaqi Bank will only save less than 60 billion US dollars, only 2% of the peak period.

Back then, when the market value of ICBC surpassed Citigroup in one fell swoop, it caused an uproar in the relevant foreign media: the international joke is big, the market value of ICBC exceeds Citigroup!
However, looking at ICBC’s performance and Citibank’s losses of billions of dollars at every turn, I can only sigh: the capital market has the foresight. With such a growth potential, why can’t ICBC surpass Citigroup in market value?
"Mr. Jiang, the Internet industry is changing too fast, and three years is too long. Our competitors are all preparing to go public." Gao Peng still didn't give up.

"The only opponents of Qunar are Ctrip. The others should not be your opponents. But if you look at Ctrip's current stock price, it has been stacked for a month, right? If it falls further, you may be able to buy the bottom. When your opponent's shareholders have gone," Jiang Hui said jokingly.

"The U.S. stock market is indeed in a downturn this month, but China's performance is actually not bad. The correction is still within everyone's acceptable range. Why don't we consider listing on the Shenzhen Stock Exchange?" Gao Peng continued.

"Have you seen any Internet company around you that is listed in China? It has no fixed assets, its profits are not very good, and it is even losing money. The Shenzhen Stock Exchange can let you go public?" Jiang Hui asked.

The listing system of the Celestial Dynasty is destined to be difficult for Internet companies such as Qunar to meet the policy requirements.

This is also one of the reasons why almost all Chinese Internet companies are listed overseas.

"That's true, I was a little impatient," Gao Peng said.

Although Gao Peng really wanted Qunar.com to go public as soon as possible, but seeing the firm attitude of the big boss, he did not dare to continue to stick to his personal opinion.

In fact, if Qunar is really short of funds, Guanghui Group is ready to support it at any time.

After all, what Qunar basically spends is in Renminbi, no foreign exchange is involved, and Guanghui Group can provide basically whatever it wants.

However, everyone who works on the Internet in China has a dream, which is to let the company go public.

Especially when brother companies Xiaonei.com and Meituan.com have already been listed, Gao Peng wants to go online.

In the final analysis, it is the atmosphere of the Celestial Dynasty that is at work.

(End of this chapter)