Winning the new financial era

Chapter 427 War and Peace

"10 Billion DAU",

"20 Billion Monthly Lives",

"China's first global technology company",

"Compete with Facebook and Youtube".

These keywords filled Su Hua's mind, how big is the short video market?

Su Hua felt that Zhang Yida was more optimistic about the short video industry than himself.

I also fantasized about Kuaishou becoming a unicorn with a valuation of tens of billions of dollars, but I didn't dare to think more.

Zhang Yida's ambition is to use short videos to incubate a giant with a valuation of [-] billion US dollars or even a market value.

Which one of the giants with a market value of hundreds of billions of dollars does not dominate a track?
At present, there are only two real giants in China, a penguin and a raccoon. Qiandu is almost meaningless, and the market capitalization peak has not exceeded [-] billion U.S. dollars.

Goudong is just like that, and it is basically hopeless to improve to a higher level.

Rice is not strictly an Internet company, but mainly mobile phone hardware.

NetEase is the best among the three major portals, but its market value has also been sideways for a long time at 300 billion U.S. dollars.

Toutiao is developing well, but it has just stepped into the gate of a valuation of 1000 billion US dollars, and it is still far away from [-] billion US dollars.

Leech Financial Services, Didi, Zhonghe Group, Ruixiang Group, and Meituan are the five companies recognized in the circle as the most promising candidates to become giants worth hundreds of billions of dollars, because they are still growing at a high speed.

Su Hua was thinking, and Liu Zhiping was also thinking.

It was the first time he heard Zhang Yida reveal his ambition. 10 billion daily active users and 20 billion monthly active users, this data surpasses that of WeChat.

WeChat’s current daily active users are barely close to 9 million. This data refers to accounts, and the real number is definitely not that many.

Because many people have registered two or three WeChat, and log in every day, one for work or marketing, and one for life.

Liu Zhiping suddenly felt a little nervous. Will the Zhonghe Group continue to expand indefinitely, will it have a major impact on Penguin?

Penguin's revenue consists mainly of games, digital content, online advertising, financial and corporate services.

The growth of Zhonghe Group, at present, has the biggest impact on Penguin is online advertising, followed by digital content revenue and games.

They have done an internal evaluation, and short videos consume a lot of user time.

Users are all playing short videos, and whoever comes to play QQ and WeChat will cause a decrease in advertising revenue.

Users don’t play games, come to Penguin Video to follow dramas, don’t come to Penguin Music to listen to music, and don’t read novels. Digital content revenue and game revenue will also decline.

In the final analysis, it is the contention of traffic, the contention of user usage time.

However, the extent of this impact depends on how short videos can explode.

When Zhang Yida said "10 billion daily users and 20 billion monthly users", he certainly did not refer to the domestic market.

There are only 14 billion people in China, how can it be possible to make 20 billion monthly jobs.

However, reaching "4-5 million daily lives and 7-8 million monthly lives" in China is enough to give penguins a headache.

The only ones that are not affected are financial technology and cloud services, because the main opponents in this battlefield are Aliyun, Huaweiyun, Leech Financial and Ruixiang Group.

As the company gets bigger, that's it, the boundaries of competition will become more and more blurred.

Noticing that Liu Zhiping was deep in thought, Zhang Yida secretly said goodbye. It wasn't because he was boasting too much, which aroused Penguin's vigilance!

In fact, the growth of Zhonghe Group has an impact on BAT, because advertising is an important component of the revenue of these three companies.

The three-and-a-half businesses that make money for Chinese Internet companies, the cake is so big, everyone is staring at it.

The birth of a new force is bound to touch the cheese of the traditional force.

However, Zhonghe Group is not strong enough at present, especially Pinduoduo, which will have to rely heavily on Penguin for a long time to come.

So afraid of Liu Zhiping’s misunderstanding, Zhang Yida explained: “With 10 billion daily active users and 20 billion monthly active users, we assume that overseas users will account for three-quarters and domestic users will account for one-quarter.

In other words, there are 2.5 million daily active users and 5 million monthly active users in China. "

Liu Zhiping smiled and said, "Isn't the domestic goal soon to be accomplished?"

"Yes, the growth ceiling has been felt, and the main focus of the follow-up has to be on overseas business development.

Zhonghe Group is going to be a truly global company, not simply entering a few overseas countries.

It is to make Musical.ly a global software, and overseas revenue accounts for more than 75%. "

Liu Zhiping nodded. If the Zhonghe Group mainly exerts its efforts overseas, it will have relatively little impact on Penguin.

I'm afraid that if you don't think about making progress, it will not be beautiful to deepen the domestic market, engage in long videos, novels, comics, games, music and other entertainment.

Although Ali Entertainment is also investing in these industries, but if there are more crowds, the cake will be smaller for Penguin.

Ruixiang and Zhonghe are two important chess pieces used by Penguin to contain Ahri.

For now, the size is just right, it can restrain some of Ahri's hands and feet, and it won't bite the penguin.

But if it continues to grow, it may be on the same level as Ahri and Penguin in the future.

Although it didn't lift the bowl to the penguin, it would also take away part of the food in the bowl.

Liu Zhiping felt that it was necessary to have a good discussion with Pony, and then the support and strategy for Ruixiang and Zhonghe must be adjusted to a certain extent.

Su Hua thought for a while, and said to Zhang Yida: "If Musical.ly continues to expand like this, it will definitely attract counterattacks from Facebook and Google."

Zhang Yida nodded. The most influential one must be Facebook, followed by YouTube, a subsidiary of Google.

The reason is the same as Liu Zhiping's concern about Penguin's impact, for the sake of users and traffic.

"So, you just want to settle the domestic war and welcome the counterattack of the two Silicon Valley giants without distraction."

Su Hua looked at Zhang Yida with a smile. He thought he had found the biggest reason for Zhang Yida to acquire Kuaishou.

"That's just part of the reason."

Zhang Yida said with a smile, "In fact, I have always had a dream. The dream is to build an Internet company that can compete with Silicon Valley giants."

"This ideal is lofty!" Su Hua praised naturally, and he didn't mean to laugh at Zhang Yida.

In fact, among Internet entrepreneurs at their level, who doesn't have greater ambitions?

Zhang Yida went on to say: "Because Ruixiang is engaged in financial technology, it involves a lot of personal information, which is very sensitive. We absolutely cannot enter the European and American markets.

Leaving aside, let’s take Leech Financial’s acquisition of MoneyGram as an example. Do you think it will be successful? "

Liu Zhiping has a background in finance and is in the high position of Penguin President, so he sees problems very accurately.

He shook his head and said, "There is little hope. The cross-border mergers and acquisitions of Chinese companies have been obstructed by American politicians and the government on many occasions, all of which failed to obtain the approval of the Committee on Foreign Investment in the United States.

There is only one reason: it involves national security.Although this reason is nonsense, it is difficult to refute it.

Don't look at how Jack Ma met and shook hands with Trump this year, and promised to create 100 million jobs for the United States.

When it comes to key issues, these so-called "friendships" and "commitments" don't work at all.

This time Leech Financial Services may have to fall into a big fight, and it may have to compensate for the liquidated damages for the failed acquisition. "

It is simply the emperor of prophecy, and the expected results are all in place.

But this cannot say how awesome Liu Zhiping is. In fact, most people are not optimistic about the acquisition of Leech Financial Services.

Maybe the inside of Leech Financial Services, and even Jack Ma are not very optimistic about it!

It can only be called an adventure!
Everyone is happy with the success. It is not surprising that the valuation of Leech Financial Services, which has won the US market, has increased by 200 billion US dollars, and entering the US market is of great symbolic significance;
If it fails, the $3000 million will be considered a lottery ticket.

Zhang Yida spread his hands, "That's right, Western countries have always been biased against us!

Ruixiang has no chance to enter Europe and the United States, but Musical.ly has a chance, and it should be said that it has already put it into action.

A short video app is far less sensitive than payment software. "

Zhang Yida looked at Su Hua, and said again: "So, this is our opportunity now. Our two companies will merge into one, and together we will make short videos bigger and stronger.

If you continue to disperse your power, it is very likely that you will be defeated by Facebook and Google! "

Su Hua said with a smile: "Doushi focuses on first- and second-tier cities, and Kuaishou focuses on third- and fourth-tier cities and rural areas;
The current market of Musical.ly is mainly in Europe and America; the overseas version of Kuaishou is mainly in Asia.

The two of us don't seem to be in conflict at the moment! "

"Yes, there is no conflict, but only for now. What about in one year, two years?"

Zhang Yida softened his tone and persuaded: "Let's not do this kind of thing that hurts relatives and hurts enemies. We obviously have the opportunity to plant a flag on the top of the world's Internet, but in the end it is cheaper for foreigners.

Mr. Su, after the merger of Doushi and Kuaishou, the brand of Kuaishou will still be retained.

At that time, whether you want to be in charge of domestic Kuaishou, or you want to manage the entire short video business department.

You will be the President of the Short Video Division! "

President of the Short Video Division, in charge of multiple short video brands at home and abroad.

It can be said that Zhang Yida is quite optimistic about himself, otherwise he would not have given such a high position.

But when Su Hua thought of living under others, he felt a little upset.

Although Kuaishou's valuation is only a few billion dollars, he is a well-deserved boss, and he promises everything in the company.

If you join Zhonghe Group, there will be CEO Lu Qi on top, and chairman Zhang Yida on top.

"Mr. Zhang, I need to think about it. It's too sudden."

Su Hua paused, and then said: "Whether it is the founding team or the shareholders, we need to negotiate and communicate."

"$50 billion! This is our offer to Kuaishou."

Zhang Yida smiled and said, "It doesn't matter whether it's all cash or all equity purchases."

The $50 billion offer wasn't low, but it wasn't high either.

After Kuaishou completed the D-round financing of Penguin Investment, its valuation reached 25 billion US dollars.

A few months have passed, and Kuaishou's live broadcast revenue has been rising steadily.

We have found a correct business monetization model!

Some institutions outside have already offered 50 billion US dollars to invest in Kuaishou, and some even quoted 80 billion US dollars.

However, the valuation of financial investment is still somewhat different from the acquisition. The former likes a premium, while the latter likes to lower the price.

Su Hua has no doubts at all whether Zhonghe Group can afford 50 billion US dollars in cash, after all, it has only raised 45 billion US dollars in cash.

If there is a difference, refinancing or borrowing will be settled.

Su Hua thought for a while and asked, "What if we don't agree to the merger?"

Zhang Yida put away his smile, "Then take 50 billion US dollars to paint the walls in the countryside, and do live broadcast subsidies and short video subsidies.

Because the overseas market is not our focus, we can only do a good job in the domestic market first. "

The words were full of threats, but Su Hua didn't get angry.Just discuss the matter.

If he had billions of dollars in his hands, he would probably be even more exaggerated than Zhang Yida.

Which outlet of the mobile Internet has not broken out a subsidy war?

Short videos are currently fine, and only subsidize creators.

If one day even users who watch short videos are subsidized, it will be another chicken feather.

In the end, Su Hua still did not give a clear answer.

Zhang Yida was not in a hurry and gave Su Hua a week to think about it.

One week is enough time for Kuaishou, a group of founders and shareholders to discuss a one, two, three.

Digua Video has not made a large-scale effort, but is waiting for the result of the negotiation with Kuaishou.

Whether it is war or peace, it depends on how the other party chooses.

　Thank you Sword Immortal Qinghe for your reward!

　　
　
(End of this chapter)