Winning the new financial era

Chapter 386 All I Want is Cash

"I don't have any idea of ​​selling Huimin Travel, and it hasn't reached a high value yet.

Didi is indeed in full swing, but Huimin Travel’s aggregate taxi-hailing and ride-hailing businesses have also been steadily improving. "

Although he said so, Zhang Yida had already begun to seriously analyze the pros and cons in his heart.

It is an indisputable fact that it is difficult for Huimin to travel profitably.

In this life, Huimin's travel situation is much better than Baimo and the little yellow car in the previous life.

Because there is no evenly matched opponent to compete with Huimin Bicycle, so there are no such messy things as red envelopes.

Although some unnecessary marketing expenses have been saved, Huimin Bicycle’s cycling income has been unable to increase due to the existence of Xiaolan Bicycle and Hello Bicycle.

Because these two companies have launched some free rides from time to time, Huimin Bicycle can only grit its teeth and follow up.

As for things like price increases, it is estimated that everyone will not be able to bear the loss, so they will sit together and talk about it.

The acquisition of two bicycles monopolizes the market.

Zhang Yida believes that Didi and Ari would rather lose money than sell it to him.

Aggregating taxi-hailing and ride-hailing businesses has developed rapidly on the basis of Huimin Chuxing, a platform with tens of millions of active users.

After spending nearly 1 million US dollars in subsidies for drivers and passengers, the business has ushered in a new round of explosion.

However, because of the existence of Didi, these two businesses have limited room for imagination.

Zhang Yida remembers the data released by Didi in his previous life in 2017, the profit of the ride was 8 million yuan.

The volume of Didi Shunfengche is currently seven or eight times that of Huimin Shunfengche.

Even if Huimin Shunfengche can reach half of Didi's volume in the future, it will only make a huge profit of 4 billion yuan.

Aggregation taxis can't take away too much market share from Didi.Because none of the other small and medium taxi-hailing software can reach 20% of the market share, and the other shares are all DiDi, and its market share is still increasing rapidly.

In the 18th year of the previous life, the Ministry of Communications also issued a document to investigate Didi on the grounds of suspected monopoly.

Zhang Yida has no idea whether Huimin Travel will be fully profitable in the future.

Without considering the depreciation of bicycles, it is definitely no problem to achieve a revenue balance.

But without considering the depreciation of bicycles, after one or two years, 1000 million bicycles have broken down and 500 million have broken down. Should we still invest in new bicycles?

If no new bikes are launched, revenue will drop and valuations will drop.

When launching new bicycles, the source of funds must be considered.

Before Huimin Travel has no self-hematopoietic ability, the sources of funds are equity financing and debt financing.

In another year or two, it will be difficult for Huimin Travel to raise funds.

Because Uber and Didi are all worthless, who would dare to vote?
Debt financing is also difficult, because a pile of old bicycles and unimaginable company equity is worthless.

If Huimin Travel is sold, it will also have an impact on several other companies under its umbrella.

The most influential one is Ruimin Financial Management. There is no guarantee that Didi will be willing to renew the deposit financial management cooperation.

The second is Ruixiang's Mobao payment, which lacks a payment scene.

Other companies, such as Pinduoduo, Yimindai, etc., are fine, but there is one less advertising channel.

"Yida, you might as well listen to Didi's quotation first."

Seeing Xue Cunhe's confident appearance, Zhang Yida was also a little curious, what kind of price Didi offered.

"$60 billion!"

After reporting the figure, Xue Cunhe said with a smile: "Didi is very sincere, the 60 billion US dollars includes 10 billion US dollars of debt commitment.

In other words, there is 50 billion US dollars that can be given to the existing shareholders of Huimin Travel.

Yida you hold 30.57% of the shares, you can get 15 billion US dollars.

Of course, it is impossible to pay in all cash.

You can choose to transfer all the US$15 billion into Didi’s shares, or you can choose to take half of the cash and half of Didi’s equity. "

"I want to buy Huimin Travel at this price, isn't it a dream?
Huimin Travel’s C-round financing was valued at US$4 billion in April last year.

The acquisition price of 50 billion US dollars cannot be explained to the shareholders who joined in the C round.

Mr. Xue, you are also an old investor. According to this quotation, the ratchet clause of the C round of financing will be triggered.

Management and I need equity compensation for Series C investors. "

Xue Cunhe reassured: "Yida, it's nothing if the ratchet clause is triggered, it's just a few shares.

At that time, our shareholders before the C round will discuss it, and it will be fine.It will not let you and the founding team suffer.

But then again, you have to seize such a good opportunity to cash out. "

Zhang Yida felt that Xue Cunhe was too concerned about this matter!
But if you think about it, it's normal.

Softbank has just acquired a large number of shares in Huimin Travel at a low price. Once in and out, buy low and sell high, you can make a lot of money.

In addition, selling Huimin Chuxing to Didi Chuxing can greatly strengthen the latter's strength.

And Softbank also has a large stake in Didi, and they will also benefit from it.

For SoftBank, this is killing two birds with one stone.

"Boss Xue, see if you can do this."

Zhang Yida began to talk about his plan, "Softbank has stakes in Ari, Didi, and Huimin Travel, and has a major influence on the three companies.

For Didi, what they are most afraid of is that we will enter the online car-hailing service and shake its foundation.

As long as they agree to sell the little blue bicycle to us, we can guarantee that the well water will not violate the river water.

And it’s useless for Ali to hold a small Hellobike. You can do their work and ask them to sell us the Hellobike.

In exchange, we allow Huimin Travel to access Paybe and Zhima Credit. "

"You want to monopolize bike sharing?"

Then Xue Cunhe came to his senses again and shook his head again and again: "Yida, don't embarrass me, an old man. I have old arms and legs, how can I have so much energy."

He glanced at Zhang Yida, smiled and said, "You want Didi to raise the price, right? That's no problem, Softbank can take charge of the negotiation.

But don't expect too much.After all, others are not fools.

For billions of dollars in big mergers and acquisitions, it's fine if you don't give your valuation a break. "

"It's still broken!"

Zhang Yida smiled, the elderly are quite fashionable.

"It is Didi that needs us, not we need it. If Didi does not acquire Huimin Travel, its ecology will be incomplete and there will always be a missing link.

Let's take the simplest example. Didi has only more than 3000 million monthly active users. If they integrate Huimin travel.

This number can double, approaching 1 million people.What does this mean for them?
It means a merger and acquisition, and the whole company will turn around..."

Zhang Yida's rhetoric is similar to Xue Cunhe's in persuading Chen Wei.

Anyone with a discerning eye can see that the traffic portal of shared bicycles is too important to Didi.

Without it in his hands, Chen Wei might not even be able to fall asleep.

Xue Cunhe was silent, all of them were clever little ghosts, so it's not easy to fool them.

"Yida, tell me what is your psychological reserve price?"

"A billion dollars!"

Xue Cunhe has some headaches, being a broker is really not easy!There are uncles on both sides, and it is difficult to be a middleman.

"Let's not talk about whether Didi accepts it. If we really want to follow this offer, most of them will have to use equity acquisition.

For example, the ratio of equity to cash is seventy-three, eighty-two.Can you accept such a plan? "

Zhang Yida thought for a while and asked, "What is Didi's current valuation?"

Xue Cunhe also said truthfully: "After completing the new round of financing led by Softbank, the valuation will rise to 500 billion US dollars.

If Huimin Travel is acquired again, it will be close to 600 billion US dollars. "

The bubbles were blowing really fast and big enough that Rui Xiang lagged behind Didi a lot.

But Zhang Yida really didn't want Didi's equity.

This year should be the peak of Didi's valuation.

Next year, Didi Shunfengche will have a passenger murder incident, which will cause heated discussions across the country, and Didi will be forced to discontinue the Shunfengche business.

Seeing Didi's decline, players from all walks of life appeared on the stage.

With the entry of Meituan, AutoNavi Maps, and Qiandu Maps, plus other small and medium taxi-hailing software, Didi Brilliance is gone for a while.

Didi’s valuation once reached 800 billion U.S. dollars, and then fell back to more than 500 billion U.S. dollars.

In the meantime, there have been several rounds of financing.

Now, with a valuation of more than 500 billion U.S. dollars, you may even lose money.

Anyway, in his previous life, Zhang Yida saw that Didi shareholders were reselling old shares of Didi at a valuation of US$400 billion.

"$60 billion, all-cash acquisition."

Zhang Yida decided that he still couldn't take Didi's shares, even if the company was sold at a lower price.

"All cash?"

Xue Cunhe was surprised, smiled and shook his head, "This is unrealistic and illogical!

Even if Didi completes this round of financing, the cash on its books is only a little over US$130 billion.

Take out nearly half of the funds to acquire Huimin Travel, what about its own business? "

"Wouldn't it be better to raise another round? Or this round of financing is bigger, wouldn't it be good to raise $100 billion? It sounds more domineering than raising billions of dollars.

Moreover, it can also create a global single private equity financing record in the Internet field.These are live ads. "

Xue Cunhe shook his head and laughed, and really wanted to say: Do you have any misunderstandings about 100 billion US dollars?
Internet companies that can raise hundreds of millions of dollars before going public can be regarded as well-known in the industry.

Raising billions of dollars in financing is rare in the world.

As for more than [-] billion US dollars, Xue Cunhe has never seen it in his career.

"Yida, I can only say that we will try our best to negotiate, and I can't guarantee success.

Try to make the purchase price and cash ratio higher! "

Zhang Yida nodded and said, "By the way, I have another condition, that is, after Didi acquires Huimin Bicycle, the cooperation between Ruixiang and Huimin Bicycle cannot be terminated.

The cooperation agreements including Mobao Pay, Mung Bean Credit, Mini Programs, etc. were re-signed for a period of five years. "

Xue Cunhe smiled, he knew that Zhang Yida was Ari behind Ji Jididi.

He nodded, "Okay, add this one too."

Zhang Yida remembered the matter of deposit financing, and hurriedly added another item.

Deposit financial management is too important for Ruimin financial management. If it is suddenly taken off the shelf, it will cause users to panic and it will be troublesome.

Large-scale withdrawal of funds by users will cause great trouble to Ruimin Financial Management.

If a run is caused, the risk will still be passed on, and Huimin travel will not be immune to it alone.

Xue Cunhe obviously knew how powerful he was, so he complied with this request.

After discussing the conditions, Zhang Yida said, "Then tell the other shareholders, let's hold a meeting together."

Then, Huimin Travel held a general meeting of shareholders.

Selling yourself?

When a group of shareholders heard this meeting topic, they exploded.

Didi has been in the limelight in the past two years, and it is a super unicorn with a valuation of tens of billions of dollars.

Most people think that it is not bad to sell to Didi, and it is a good buyer.

Some time ago, with the withdrawal of the two shareholders of Jingwei Global and Jinshahe Venture Capital, many other shareholders also retreated.

They are also wondering if the ship Huimin is going to sink?

Because Xu Xiaoming and Shen Beipeng were relatively close to Zhang Yida, they all cast inquiring glances at the conference.

Zhang Yida nodded to them, indicating that there is no problem.

Then Zhang Yida said: "It is still in the negotiation stage, please don't leak the news.

The reason why we chose to "merge" with Didi is also because one plus one is greater than two.

We are number one in the field of shared bicycles, but we missed the opportunity in the field of online car-hailing;
Didi is the opposite of us. They are the number one online car-hailing company, but they miss out on shared bicycles.

Our merger with them can also form a complementary business and create greater value for shareholders and users..."

Zhang Yida explained a little more, and then announced the voting.

There was no objection, and the prostitution resolution was passed unanimously.

After the resolution was passed, the negotiating team began to be assembled.

Shareholders such as Blackshirt Capital, Penguin, and SoftBank sent their representatives after discussion and consultation, together with the management of Huimin Travel, they jointly formed a negotiating team.

(End of this chapter)