Rebirth of the Financial Crisis Sweeping the World

  Chapter 448 448 Take notes! AB double-layer equity design

  In the evening, everyone got together again.

  There are more people this time.

  Greg Becker, CEO of Silicon Valley Bank, Wu Jianmin, CEO of East West Bank, and Robert Harrison, CEO of Bank of Hawaii.

  The three founders of Twitter, Evan Williams, Biz Stone and Jack Dorsey

  Co-founders of WhatsApp, Jane Combe and Brian Acton

  This time, the Wang’s Venture Capital Foundation holds 55% of the shares of Twitter and 100% of the shares of WhatsApp. Among them, 10% of the shares are distributed to the two founders.

  This time, we will inject US$330 million into Twitter and US$168.5 million into WhatsApp.

  The number of employees in technology companies is actually not many. Now that they have so much money, it can be said that the two companies will not need financing in the future.

  Twitter has actually stepped into formality. According to the current operating model, it will soon mature. As long as the WhatsApp company has creative products, it will definitely take off quickly and the growth of users will be inflated.

  In order to prevent other venture capital companies from entering, Wang Guanxi invested a lot of money at once.

  For example, when WhatsApp developed, the first two rounds of financing of A and B were Sequoia Capital, which made Sequoia Capital a lot of money, but Wang Guanxi would not let Sequoia Capital raise funds again.

  Because the money is already enough, if it is not enough, let East West Bank, Silicon Valley Bank, and Hawaiian Bank loans.

   330 million US dollars is more than 2 billion Hong Kong dollars, 168 million US dollars is more than 1 billion Hong Kong dollars, and there are also large technology companies in Hong Kong.

  Greg Becker, Wu Jianmin, Robert Harrison, the three bankers did not expect BOSS to be so willing to burn money on technology companies.

  In the field of science and technology, it's the original blood.

  You must know how many technology companies in Silicon Valley are, countless number of companies have closed down, and very few that can actually go public.

  The only secret for technology startups in Silicon Valley is irreplaceable technology, creativity that cannot be copied.

  The protection of intellectual property rights here is extremely strict. Basically, technology companies that can get mixed up have their own real skills.

  The Twitter company is okay, but the WhatsApp company has only one idea. No real product has been developed, and if it is developed, it is not known whether it will be welcomed by the market.

  This is a money-burning gadget, and money is easy to get lost.

  Basically, many venture capital companies jointly invest and share risks.

  Wang Guanxi directly invested heavily in his own technology giant.

  Wang Guanxi said: "Everyone, now is the economic crisis, traditional industries are facing a huge impact, the future is still the era of Internet technology, now Apple's smart phones are being updated, everyone must seize the good opportunity."

   "Yes, BOSS"

   "Yes, Mr. Wang!"

In fact, Twitter and WhatsApp are competitive, but Evan Williams, Biz Stone and Jack Dorsey of Twitter did not combine WhatsApp’s Jane Combe and Bryan Acton looked at the two of them.

  After all, the WhatsApp company only has a design idea, and it has not even developed a product.

   Then Wang Guanxi continued: "Evan Williams, Biz Stone and Jack Dorsey, I actually have a little suggestion for the future strategic development of Twitter. You can listen to it."

  Evan Williams quickly said: "Mr. Wang, please tell me"

   Biz Stone also said: "Mr. Wang, please say"

  Jack Dorsey: "Mr. Wang, please tell me that we are all technical, but the macro vision is still very insufficient."

Then Wang Guanxi said: "Three gentlemen, Twitter has developed very smoothly in the early stage of its business, and has quickly accumulated its own popularity in the new information market. Almost no one expected it to achieve such an achievement, even after experiencing it. Despite multiple server outages and downtimes, Twitter has not been abandoned by users, but attracted more new users to register."

Wang Guanxi first affirmed the development strategy of the three people, and then he said: "Now that you have injected 330 million US dollars into it, you can continue to burn money, but as Twitter continues to grow, the road to commercialization in the future is inevitable, but At present, Twitter has not created the technology for world-class services. I hope that while you will make breakthroughs in this area in the future, you will also establish an advertising department. For example, insert paid advertisements in the status update information stream. Your opponent Facebook will be in the future. Will also adopt this model"

  Evan Williams, Biz Stone and Jack Dorsey heard them, and immediately knelt to Wang Guanxi.

  Wang Guanxi’s guidance almost revealed the fatal flaws of the Twitter company in the future, and then told them how to solve them!

  Evan Williams quickly said: "Mr. Wang, this strategy is really wonderful."

   Biz Stone: "Facebook’s Mark Zach hasn’t thought of it yet, Mr. Wang, your vision is too advanced."

Jack Dorsey: "According to an operating model like Twitter, commercialization will soon begin. We really don't have world-class service technology and no profit model. These are all the flaws of Twitter. Mr. Wang, you are like this. In one word, let us thoroughly understand the fundamental problem and the solution. Your vision is too long-term."

Now it has been injected with a capital of 330 million US dollars. There are also loans from East West Bank, Silicon Valley Bank, and Bank of Hawaii. Twitter will no longer be short of funds. As long as this operation model is followed, users will continue to increase, but Twitter also needs to be profitable. , And a world-class service technology.

Wang Guanxi has already told them what to do in the future, and the three of them will complete the execution. In the future, Twitter will be listed, and their worth will definitely skyrocket. At that time, they will sell their stocks or continue to stay in Twitter. It is the three of them themselves. s Choice.

  Wang Guanxi smiled and said: "You guys work hard. After Twitter is listed, we are all winners. I hope everyone will cooperate together."

   "Come and have a drink!"

  The three were very excited, and then they had a drink with Wang Guanxi.

Evan Williams suddenly said: "Mr. Wang, I will also call you BOSS in the future. After the Twitter company is listed in the future, I plan to cash out some stocks and form a family trust. Will you entrust your Crown Trust to manage it? "

  Turn the assets into a trust and become the beneficiary of the trust. Even if he goes bankrupt in the future, these trust assets will not be auctioned off. His children can still be the beneficiaries of the trust and continue to inherit wealth.

   can also avoid high inheritance taxes.

  Moreover, the Crown Charity Foundation can also help him evade taxes.

  The larger the scale of the foundation, the more convenient it is for tax evasion.

  Moreover, the charity fund under the charity foundation can also let the donor decide how to use the donation.

  They don’t understand finance and can’t transfer to the foundation, but Wang Guanxi, the super rich man, is different.

  In the United States, Wang Guanxi does not have any assets under his name, and all assets are held through charitable foundations and trust foundations.

  A dedicated legal team, investment team, and management team are operating the foundation.

   Biz Stone also said: "Mr. Wang, you will also be my BOSS in the future. Evan Williams and I think the same way. In the future, I also want to pass on wealth through trust."

  Jack Dorsey also said: "Me too, when the Twitter company is listed, I will also make trust assets or donate them to charitable foundations, so as to avoid capital gains tax."

  Wang Guanxi smiled and said: "Yes, you will all serve as committee members of the foundation in the future. My future consortium is very large, and everyone is the beneficiary. I hope that everyone will continue to cooperate and win together!"

  His horses, or partners, will also serve as directors of the foundation or members of the management committee.

  Everyone is in this huge interest ecosystem, and win-win together. Whoever destroys it is everyone’s public enemy!

  "Yes, BOSS" the three are very excited.

  At this time, Jane Combe, the co-founder of WhatsApp, said: "BOSS, I also listen to your views on the future development of WhatsApp."

  Brian Acton also said: "BOSS, you have a unique vision. The service areas of our WhatsApp company and Twitter are different. I hope to hear your advice on future development strategies."

  Wang Guanxi said: "I hope you will design WhatsApp as a communication between smartphones. With the help of push notification service, you can instantly receive messages from relatives, friends and colleagues."

"You can switch from sending mobile phone text messages to using the WhatsApp program for free to send and receive messages, pictures, audio files, and video messages. Now Apple’s smartphones are being updated and will lead the smartphone revolution. I hope you will seize the Communication software design"

  Jane Combe and Brian Acton suddenly became clear, and quickly took out their notebooks and wrote them down directly.

  "BOSS, keep talking"

   "We haven't even designed the first product of WhatsApp now. We just have an idea. Every word of you can make us understand."

  Wang Guanxi smiled and said, "Then just keep talking."

  The two of them listened immediately, and wrote them down at any time.

At this time, Wang Guanxi said: “WhatsApp must be registered based on the mobile phone number. When registering, just enter the mobile phone number and receive a verification text message. WhatsApp can search for people who are already in use in the user’s mobile phone contacts and automatically add them. To the user’s mobile phone contact list."

  The two quickly wrote down.

  At this time, Wang Guanxi asked: "Do you have any opinions on Jane Combe and Brian Acton? Also talk about your business philosophy."

  Jane Combe immediately said: "BOSS, I want to promote the reliability and simplicity of this app"

Brian Acton also said: "We used to work at Yahoo Shopping, and they always argued about putting more ads and logos on the page, but what does this have to do with users? This left me Bad impression, advertising can’t solve everyone’s commercialization problem. I think the service model is a pure model—the customer is the user."

  Wang Guanxi nodded: "Very good, I support your ideas and take a different path."

  Thinking about it, Wang Guanxi added: “The future of WhatsApp must have a clear goal, that is, not to hinder users.”

  Thinking about it, he continued: “People want a desktop version and a username. You must always adhere to the practicality, simplicity, and service quality of WhatsApp. Advertising, games, and stunts will all create obstacles.

  Don’t turn WhatsApp into a place to find a one-night stand. The purpose of WhatsApp is to let users maintain the close relationship between relatives and friends. "

  "This is a different path from Twitter and Facebook, I hope you will stick to it"

  Jane Combe and Brian Acton exuberantly said: "Yes, BOSS!"

  Now they have admired Wang Guanxi to the ground.

   While Zhang Xiaolei, Luo Baowen, Jennifer Lawrence, and Ford Ingrid were speechless, they did not prevent them from admiring Wang Guanxi’s pattern and vision.

  At this time, Wang Guanxi added again: "User privacy is the most important thing. You hope you will keep user privacy confidential to the extreme!"

  "Yes, BOSS" everyone was shocked again, and they all ignored it. They didn't expect BOSS to be so careful and considerate.

   Then Wang Guanxi said: “In the future, I believe that Twitter and WhatsApp will become a star technology company in Silicon Valley, a social giant in the United States and even the world, and will fight against its rival Facebook.”

  "Yes, BOSS" Then everyone continued to drink,

  Wang Guanxi was lost in thought about the fate of the future WhatsApp company.

  Whether WhatsApp will be acquired by Google or Facebook in the future, Wang Guanxi is not sure.

  Now is to let WhatsApp company and Twitter company develop. It is extremely important to control the right of social discourse. He will invest in acebook company too!

  But Twitter is a godson and WhatsApp is a pro-son. He still hopes that these two companies can surpass Facebook.

  But Mark Zach is not an ordinary person. How can someone who can get Facebook to a trillion-dollar market value level is easy to deal with.

  Wang Guanxi himself doesn’t know how to operate a technology company. He can only talk about a general strategy to seize some opportunities, but can he win Markzak in this way?

That is impossible.

Although Mark Zack is arbitrary in the company and does not put shareholders in the eyes, he is smart. In spite of all shareholders’ objections, Mark Zack first acquired the social image application Instagram, and then desperately paid 19 billion U.S. dollars. Acquired WhatsApp to gain a dominant position in mobile chat.

  There are five reasons for the acquisition,

  First, the future mobile social platform will be indispensable for Facebook. With the development of the mobile Internet, more and more people's social behaviors occur in mobile scenarios. Grasping the mobile market is equivalent to seizing the future of social networking.

  Second, Facebook itself is not performing well on the mobile platform. Although Facebook is the world's largest social platform, it has not shown dominance on the mobile side, and is constantly being challenged by new mobile social applications such as WhatsApp and Snapchat.

  Third, WhatsApp has a strong presence in the mobile social field. WhatsApp has 450 million monthly active users, 70% of which are daily active users, and the current daily number of new users has reached 1 million. The volume of messages sent by WhatsApp has approached the volume of global text messages sent.

  Fourth, Facebook has successfully acquired mobile platform applications. Facebook’s largest acquisition on the mobile platform was the US$1 billion acquisition of Instagram, a social networking application for pictures, but the value that Instagram brought to it far exceeded US$1.2 billion. The acquisition of WhatsApp may achieve the same effect.

  Fifth, the acquisition of WhatsApp is in line with Facebook’s strategy of internationalization. Now that Facebook's users have exceeded one billion, it needs to continue to explore emerging markets to maintain the growth of users. WhatsApp is currently the most internationalized mobile social application and has a good performance in many emerging markets. Facebook can use WhatsApp to break into these emerging markets. So Markzak bought WhatsApp at a sky-high price.

  In this way, Facebook has laid the foundation for a trillion-dollar market value.

  Now WhatsApp has been called Wang Guanxi’s company. Driven by Wang Guanxi’s huge sums of money, WhatsApp will definitely take off explosively.

  If Mark Zak wanted to acquire WhatsApp, it would be impossible without Wang Guanxi’s nod.

  Wang Guanxi is no longer satisfied with the price of 19 billion US dollars.

  After WhatsApp is built anyway, Facebook and Google will rush to acquire WhatsApp.

  In the future, a price war for WhatsApp will erupt between Google and Facebook.

  At the end of 2012, the initial bid was only US$250 million. By July 2013, the price was US$19 billion.

   Although Google was finally willing to offer a price of more than 20 billion U.S. dollars, in the end, WhatsApp’s founder, Jane Kum, hopes that the product will develop in accordance with his ideas, that is, he does not want WhatsApp to become another Youtube.

  Furthermore, Facebook is more suitable for the development of WhatsApp.

   So chose to merge into Facebook, and it has been an independent department for a long time.

  The combination of WhatsApp and Facebook can be said to be a strong combination and a win-win situation.

  That’s why Mark Zach offered a $19 billion purchase price.

  After dinner, Luo Baowen asked: "BOSS, you now support Twitter and WhatsApp. After these two companies become bigger, they will definitely be Facebook's competitors. We still want to invest in Facebook?"

  The current economic crisis, Facebook’s valuation is still falling.

  Of course, this is the valuation of investors. As long as you invest, you will know whether Mark Zack recognizes this valuation.

  But it is true that Facebook’s business has been hit because of its rapid expansion, and its valuation has been greatly reduced.

  In April 2005, Facebook’s valuation reached US$100 million

  In March 2006, Facebook was valued at US$525 million

  In October 2007, Microsoft invested US$240 million in Facebook, and Facebook’s valuation soared to US$15 billion, but this valuation was not recognized by Facebook

  In August 2008, Facebook’s valuation plummeted due to the financial crisis to US$4 billion

  The lowest value was US$2 billion in April 2009, but the highest valuation in May was as high as US$10 billion.

  The valuation of Facebook changes like the market value of a listed company.

  In 2010, investors’ valuation of Facebook has undergone a lot of changes, from a minimum of US$12 billion to a maximum of US$59.4 billion

  In September 2011, Facebook’s valuation rose to 87.5 billion U.S. dollars

  In March 2012, its valuation was 102.8 billion U.S. dollars. After the IPO price was 38 U.S. dollars per share in May, its valuation was 104 billion U.S. dollars.

  The current mobile era has not yet come. Facebook’s challengers in the new mobile social applications WhatsApp and Snapchat have not yet appeared.

  But it’s coming soon. Now that Wang Guanxi takes control of WhatsApp, it will inevitably present a huge challenge to Facebook in the new mobile social application in the future.

  Thinking of this, Wang Guanxi asked: "Secretary Luo, what is the valuation of Facebook investors now?"

  Luo Baowen said: "It's still 3 billion US dollars, and there is no change."

  Wang Guanxi said: "Wait then, when its valuation is the lowest, let’s inject capital again."

  When Facebook’s valuation is the lowest, that is when the company faces the greatest risk. In the economic crisis, investors are less optimistic about its future prospects.

   After all, this Mark Zak will make mistakes.

   "By the way, secretly arrange for someone to say in the media that Mark Zack's company is going to close down. Don't let anyone know that we did it. Let Facebook's competitors publish it."

  “Yes, BOSS” Luo Baowen hurriedly sorted out the files in the briefcase, and then wrote down what to do next.

At 11 o’clock in the evening, Greg Becker, CEO of Silicon Valley Bank, came up and said, “BOSS, I’ve contacted Mark Zak before and said that he invested heavily in its company, but he didn’t want to dilute his opinion. Absolute control of the company!"

  Wang Guanxi yawned: "He refuses to give up any control?"

Greg Becker said: “Yes, Facebook’s equity is a two-tier design of AB shares, B shares have 10 votes per share, and A shares have only 1 vote. Mark Zach’s is not Will give any investor Class B shares, he said we can raise funds, but must raise Class A shares"

  "Okay" Wang Guanxi thought for a while and said: "When Twitter is listed, please change the equity to AB double-layer design."

At present, Wang Guanxi controls 55% of the shares of Twitter. In the future, 15% of the shares will be listed and raised. He will also hold 50% of the shares. If you want to maintain control of Twitter, you do not have to hold 50% of the shares. Hold 10% of Class B shares, and then have 10 votes per share, and still control more than 50% of the right to speak.

  Like Facebook, Mark Zak alone has the final say, because his shares are basically Class B shares, and one share has 10 votes.

  Even if Facebook has repeatedly raised funds, acquired multiple mergers, and has a market value of up to trillion US dollars, he still controls 60% of Facebook’s voting rights, and no one can challenge him.

  Even though many shareholders are already very dissatisfied with him and will kick him out of Facebook, they still have no way to deal with him.

  However, if Facebook wants to acquire WhatsApp in the future, Wang Guanxi can also give WhatsApp a double-layer equity design!

  Aren’t you going to merge?

  Yes, the acquisition of Class B stocks will dilute Mark Zach’s right to speak, so Wang Guanxi may have the opportunity to challenge Mark Zach’s power position in Facebook.

  Thinking of this, Wang Guanxi said: "Make WhatsApp into an AB double-tier equity structure!"

  In the future, if the development of the Twitter company encounters a bottleneck after its listing, he can sell the stock, retain 10% of the Class B shares, and control more than 50% of the voting rights.

  Although there are still 10% remaining shares, they are all Class B shares, and one share holds 10 votes, just like the Macy’s department store controlled by Wang Guanxi.

  10% of the shares and 52% of the voting rights.

3.3% of Ford Motor Company’s shares are also Class B shares. One share has 20 voting rights and controls 40% of the voting rights. The remaining 1.5 billion Class A shares, he can at any time in the future stock price rise to high When it’s time to sell, you can still control Ford Motor Company.

  If Facebook wants to acquire WhatsApp in the future, it will also acquire Class B shares!

  "Yes, BOSS" Ma Zai hurriedly arranged to make the Twitter company and WhatsApp company into AB double equity.

  (End of this chapter)