Rebirth of the Wild Age

Anyone who is a little familiar with the history of Internet development knows that Google finally adopted a "Dutch auction" to go public, smashing all the old Wall Street rivals.

This is a shocking choice that makes Google an enemy of Wall Street in an instant.

Credit Suisse, as the underwriter designated by Google, with the option agreement signed by both parties at the time, those Credit Suisse employees involved in the listing operation can purchase stocks at a low price through "green shoe options"-a discount of $40 compared to the market price. Each person is limited to purchase 100 shares within the specified time.

Let's make it clearer, if I were an employee of Credit Suisse and participated in Google's listing operation. Then I only need to invest 4,500 US dollars and buy 100 shares at a price of 45 US dollars. The money will become 10,000 US dollars on the opening day and 20,000 US dollars after three months.

However, no one bought it.

Because these insiders are scared

Now, the gossip is flying all over the sky, and Wall Street has implicitly stated that Google will fail.

Can Google as a company fight the entire Wall Street? Obviously not. As a result, relevant practitioners unanimously criticized Google and did not believe that Google's stock price would rise sharply, thus losing a great investment opportunity.

However, at this moment, that is, when Song Weiyang flew to the United States at the beginning of the year, Google had no crazy plans to "list on auction".

Just last month, Google abruptly terminated negotiations with Microsoft, saying that we do not intend to sell ourselves to Microsoft. Then it announced the hiring of two banks, Morgan Stanley and Goldman Sachs, as the underwriting agency for the Google Ipo listing. The estimated amount of funds raised is US$4 billion, and the investment agency estimates that US$12 billion of Google stock will be marketed.

Before ipo goes public, the company's founders, shareholders and underwriters will negotiate for months. Everyone sat together to discuss how much shares should be offered publicly, which of them were sold to internal employees, which were sold to major shareholders, and how to sign the underwriter’s option contract. Anyway, the whole process was time-consuming and very cumbersome.

Song Weiyang came to the United States for a meeting this time without even discussing the above key content. He was directly confronted by the joint suppression of the five shareholders.

All shareholders want to take advantage of the opportunity of ipo to increase their shareholdings, but they do not allow Taurus Capital to participate in it. The reason is for the long-term development of Google... In fact, it is all nonsense. With Google’s current situation, it is not qualified to allow the U.S. government to stare at it. Nor does it care about the shareholding ratio of Chinese shareholders.

Obviously, they are jointly bullying Song Weiyang, the Chinese!

Sequoia Capital wants to acquire the founder stock in Song Weiyang's hands, which is the kind of stock with 10 voting rights, because the two founders must implement the ab share model.

Song Weiyang kept smiling the whole time and said happily that it was okay. Now let's sign the option contract. According to the relevant laws of the United States, I will sell you as much as I sell to you half a year after Google’s listing, regardless of the market price. I will sell you as much as I will sell you after one year, regardless of the market price.

Sequoia Capital’s negotiators were silent for an instant, and the ghost knew how much Google’s stock would rise in a year. Google's current valuation is only more than 2 billion US dollars, even if the ipo is about to go public, the price of 300 US dollars per share is purely crazy for money.

Now not four years ago, the Internet bubble has long been squeezed out!

The negotiations broke down, and Song Weiyang didn't bother to waste time and directly let the negotiators attend the meetings in the next few months.

To welcome Song Weiyang, Larry Page and Sergey Brin chose a Chinese restaurant for dinner. After ordering, Larry smiled and asked, "Song, are you particularly angry now?"

"How come? I treat those guys as clowns. Are you angry at the clown's performance on stage?" Song Weiyang said with a smile, "I only feel funny."

Sergey said, "Sequoia Capital not only wants to buy your stock, but also our stock. If we don't sell, they don't agree with the ab share model. These capitalists want to gain control of Google. "

The United States does have companies listed on the ab-share model for a long time, but they have disappeared for many years. Larry and Sergey are challenging the authority of capitalists.

Song Weiyang shrugged, "I am also a capitalist. If they can afford the money, I will be happy to sell them the shares, but they are too stingy."

Sergei laughed and said, "That's because your bid is too outrageous. If Google's stock price reaches $300 six months after its listing, do you know what this means? It means that the entire Nasdaq will be heated by Google! "

Larry said with anxiety, “Last year the Nasdaq index rose too fast, and it continued to fall after New Year’s Day this year. The entire Internet stock market is in a slump. Goldman Sachs and Morgan Stanley lack confidence in Google. They gave green shoe options. The price is only $80, and I am now planning to change the underwriter."

Sergey said, "This is a customary model on Wall Street. The investment bank, as the underwriter, has joined hands with the original shareholders to seriously underestimate the value of the company to be listed, and even deliberately release negative information to depress the company's issue price. The original shareholders took advantage of this. Ipo increased its holdings by a large amount, and the underwriters also bought at crazy low prices. They could make a profit of more than 50 on the first day of trading. When the Internet bubble was severe, they could even make a profit of 200. They made a lot of money, but the company and founders lost a lot. ."

This is why Sequoia Capital does not allow Song Weiyang to increase its holdings in the ipo stage. For Wall Street, Song Weiyang is always an outsider. He is not qualified to take a share at a critical time-the company's ipo goes public, of course, he hopes to raise more money. The better, but it will greatly dilute the stock, and existing shareholders may not be able to maximize their benefits.

The United States is an inclusive society, and it is also extremely closed unless you can bring them greater benefits.

Song Weiyang asked, "In your mind, what should Google's release price be?"

"More than $120," Larry said.

The three of them were talking about business. The waiter in the Chinese restaurant brought the tableware up, looking dumbfounded at the plastic chopsticks--let's call them chopsticks.

One end of the chopsticks is a fork, which can be used directly by the Yankees. The other end is like chopsticks. Americans who don't know how to use chopsticks can use this thing as tweezers. Of course, you can also choose to break it apart, which is the American version of disposable plastic chopsticks.

Seeing that Shen Si was playing with his chopsticks, Larry took the initiative to introduce, "Miss Shen, the Li Hongzhang chopsticks in this Chinese restaurant are so delicious!"

"Li Hongzhang... Miscellaneous?" Shen Si was quite surprised, thinking that Li Zhongtang was miserable enough to be cursed by the Yankee every day after he died for more than a hundred years.

Larry smiled and said, "Yes, Li Hongzhang's offal is the signature dish here, and Zuo Zongtang's chicken is also very delicious."

Well, a pair of political enemies in the late Qing Dynasty are still fighting in the United States.

With great expectations, Shen Si finally saw these two famous dishes. In her opinion, one is chaotic stew and the other is Gu?K meat. "Zuo Zongtang Gu? K meat" is sour and sweet, it should be delicious in theory, but it is a pity that the thing is too sweet, and it tastes instantly throaty.

As a result, "Li Hongzhang's Miscellaneous" became the main target, and Song Weiyang and Shen Si had eaten most of it.

Sergey was eating glutinous meat with relish, and said, "We still want to try our best to strive for the ab share model. If it is impossible, we can only give up. Anyway, we can hold a controlling stake in the short term. If we encounter a hostile takeover in the future, we will start the "poison". The Pill Plan', anyway, won’t let other people control Google.”

"The poison pill plan is too passive. Killing a thousand enemies will harm yourself by 800." Song Weiyang said.

The so-called "Poison Pill Project", let's not explain it professionally. Let's come to a more vivid metaphor. A tiger wants to eat me. I swallowed poison in front of the tiger, and then I became a poisonous person. As long as the tiger eats me, I can kill it without poisoning it. So the tiger had only two choices, either give up the plan to eat me, or risk his life to eat me.

Don't you want to kill me, the big deal will die!

In history, Shanda once wanted to acquire Sina, and it has already put it into practice. Sina managed to escape through the poison pill plan, but its vitality was greatly injured in the short term.

Larry asked, "Song, do you have any good suggestions? How to force other shareholders to agree to the ab share plan?"

"It doesn't matter if they are ~www.readwn.com~ Song Weiyang said with a smile.

Sergey said, "But their joint efforts with underwriters to lower prices are too serious, especially Sequoia Capital, which is simply the biggest obstacle to Google's listing."

The two founders were wary of and hated Sequoia Capital for specific reasons. Sequoia Capital has invested heavily in Yahoo, and wanted to turn Google into Yahoo’s flanking protector, and even gave Yahoo’s search business to Google. This made Google involved in a very troublesome patent lawsuit two years ago. At the same time, Sequoia Capital also forced Google to replace the CEO, trying to control Google through administrative means.

Song Weiyang smiled and said, "Find a few more underwriters and replace the current underwriting institutions. There are so many investment banks in the United States, but they are not monolithic."

"I have this plan too." Ali smirked.

Historically, while Ali and Sergey were disgusted by investment banks, they also made those investment banks nauseous.

Because Google’s performance is so good that it stands out among unlisted Internet companies, and investment banks desperately need such companies to stimulate the stock market. So Google never signed the underwriting contract. First, Goldman Sachs and Morgan Stanley announced their cooperation, and then they flirted with Credit Suisse, still seduce other investment banks into the game.

Those investors who got Google's listing business first joined forces to put pressure on Google, and soon they started fighting themselves. Under normal circumstances, the underwriter has to charge a financing commission of 7 and was forced to lower the price to 3 by Google. By the time of the second round of Ipo financing, Merrill Lynch announced its withdrawal directly because the commission paid by Google was already so low that they had no money to make.

Song Weiyang happily said, "Well, don't let it go on the market."

Ali and Sergey looked at each other and suddenly laughed. Ali even patted the table and said, "This is a genius idea. Let the capitalists of Wall Street eat shit!"

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