To put it bluntly, Wang Yi did not invest in Meituan, but in Wang Xing!
It is not easy for those who can fight their way through thousands of group buying platforms and have the last laugh.
The business competition in the future will not be about fighting alone, but fighting between factions!
In the previous life, the four major factions of BAT + Byte were the main ones, and other major Internet giants have attached themselves to all parties.
Similarly, Wang Yi also has to create his own faction.
Amap, Sogou, Ele.me, and Noon Sunshine are all strategic targets selected by Wang Yi, and they are all acquired and become subsidiaries of Xingyi Technology.
BYD, Goertek, and Xinli Media are Wang Yi’s chosen allies and strategic investments.
Of course, different allies have different strategic meanings and different investment intensity.
A high-quality ally like BYD is strategically important and can be invested in for the long term.
With an industry chain ally like Goertek, both sides will benefit from cooperation, so they can invest appropriately.
As for Xinli Media, it is purely for the purpose of acquiring copyrights and is a pure profit investment.
Not only will this kind of investment not be added, on the contrary, it can all be sold at any time as long as the price is right.
But Meituan is different!
Meituan, like BYD, is Wang Yi's long-term investment target.
With a powerful founder like Wang Xing, Meituan’s future will be good.
The development of Meituan also requires Wang Yi’s Changchao traffic and Xingyi Video’s advertising services and financial support!
This is the basis for the cooperation between the two.
Especially for Changchat, the number of users is growing at a terrifying rate.
Amap alone has brought 30 million users to Changchao.
After all, if you use Changchao for one month, your 200 yuan membership fee will be fully refunded, and you can enjoy free navigation forever.
For this reason, those who own cars cannot refuse and will use Changchat.
Once they use Changchat, their wives and children will follow suit and even recommend it to their relatives and friends, who will then recommend it to their relatives and friends...
Traffic fission!
Chairman Ma wanted to scold him when he saw this. He bundled Amap with cashback and increased his users by tens of millions. He simply didn’t care about martial ethics!
In addition, activated Xingyi mobile phones have built-in chat, which has also added more than 7 million users.
Other popular games such as "Defend Youzi", "Happy Xiaoxiaole", etc. have also attracted a large number of users to Changchao, totaling more than 10 million.
Especially in "Happy Xiaoxiaole", friends interact, send energy to each other, and fight monsters together, all relying on Changcha, which naturally adds many users to Changcha.
Coupled with the powerful functions of the two leading versions of WeChat and the function of searching for group purchases, it has also attracted a large number of users.
Therefore, from the launch to the present, the number of Changchao users has exceeded 40 million, and it is still increasing rapidly. It is not far away from the 50 million mark.
In the previous life, WeChat's initial functions were useless, and it took a year to break through 50 million users. After releasing version 0 and launching WeChat Moments and Shake, it broke through the second 50 million in three months!
In the current era of barren social software, as long as it is powerful and practical, there will be no shortage of users.
What's more, the current Changchao is equivalent to WeChat version 0 at the beginning, almost grabbing all WeChat users.
If this momentum continues, it will only be a matter of time before it surpasses WeChat, and it will be very soon.
After all, the current number of WeChat users is only over 75 million.
In addition, Changchao was hit hard and stole a large number of users. During this period, the number of WeChat users not only did not increase, but actually decreased!
Because of this matter, Zhang Long was often pointed at and scolded by Brother Ma!
It’s not just Baidu that’s having a bad year this year, but also Goose Factory’s WeChat department.
It was precisely because Changchao's user growth rate was too terrifying and its future was so promising that Wang Xing made up his mind that even if he offended Ali and turned against Ali, he would insist on going his own way and come to Wang Yi!
If Changchao had less than half the number of users and didn’t have such a good future and growth rate, Wang Xing would not have turned away from Alibaba so decisively.
Businessmen always weigh the pros and cons.
In the previous life, Wang Xing was completely disappointed with Ali's unremitting efforts, and felt that the traffic on WeChat was too good, so he gave Ali a knife and defected to the enemy camp.
Now that Changchao is expected to replace WeChat, Wang Xing’s decision came much earlier.
After some pleasantries, Wang Xing expressed his true feelings: "Director Wang, community group buying is in full swing now, will your company end it personally?"
This is what Wang Xing is most worried about.
If Xingyi Technology also ends up doing group buying, coupled with Changchao’s more than 40 million users and Director Wang’s financial strength, it’s over, and the future of other platforms will be bleak.
Wang Yi saw Wang Xing's worry and waved his hand:
"BAT will invest in the group buying platform, and even end it personally. But Xingyi Technology currently has no plans to end it personally. Our Changchao mainly provides a platform to provide traffic and users to the group buying platform by searching for group buying and surrounding tours and surrounding food.
To empower and promote consumption.”
Wang Xing breathed a sigh of relief. It would be best if Wang Yi didn't end up personally and only acted as a platform.
The ultimate enemy is missing again.
"Does Mr. Wang have any plans to invest in a group buying platform?" Wang Xing asked tentatively.
The current group buying platforms are too ruthless. The platforms supported by small capital are all dead, and the remaining ones are platforms supported by big capital.
Seeing that the big brother behind the opponent continues to invest more, he is rich in ammunition.
Alibaba, the man behind Meituan, has nothing to lose. Meituan is also in a precarious situation and has to find a new big brother!
Wang Yi sighed: "We talk about empowering major group buying platforms through peripheral and Sou group buying. If we invest in another group buying platform, we will be both a referee and an investor in players."
Wang Xing frowned slightly, this was indeed a problem.
Now Meituan, like Dianping, Lashou, and Wowo Tuan, all have to spend money to buy bidding rankings, services, and promotions from Changchao.
They are all ordinary customers, and they can chat freely without taking any particular direction. It all depends on money and traffic. A bowl of water is worth the price.
But if Wang Yi invested in Meituan, it would be hard to say, and he would naturally take care of Meituan.
Even if Wang Yi doesn't care about Meituan, Lashou.com and Wowotuan will think that Wang Yi cares about Meituan.
By then, Changchao's revenue will inevitably be affected and its revenue will decline.
Once you invest in Meituan, it is equivalent to giving up part of the income from other group purchases for Meituan.
Is Director Wang willing to suffer such a loss? Wang Xing is very curious.
After all, the current Meituan is just one of many platforms, and it is not the group buying overlord in the previous life whose market value exceeded Baidu!
Wang Yi saw Wang Xing's thoughts and changed the subject: "Of course, if it is a more promising platform and has a suitable price, I will also consider it."
Wang Yi made two points clearly.
First, a promising platform.
Second, the price must be appropriate.
Once you invest in Meituan, you will lose so much. Can Meituan give you more shares?
Is this possible?
You must know that investment is not just an investment of money, but also an investment of resources, traffic, and services.
For example, Changchao’s traffic portal, Meiyou, and Xingyi Video’s advertising services are all traffic and money.
Meituan can either buy these resources with money or exchange them for shares.
This was the case with the cooperation between Tencent and JD.com in the previous life.
In 2019, Tencent and JD.com entered into strategic cooperation. WeChat continued to provide JD.com with the first-level traffic entrance for WeChat service pages for three years and collected US$800 million!
Among them, JD.com paid 500 million in stock.
To put it bluntly, JD.com is exchanging shares for Tencent’s traffic portals and services!
The same is true for the cooperation between Wang Yi and Meituan.
It does not mean that Wang Yi will provide this kind of traffic support and advertising services to Meituan for free after investing in Meituan.
The premise must be converted into equivalent fees or shares!
And this fee has a time limit, and you have to pay it again after it expires!
In the previous life, platforms like JD.com and Pinduoduo made money from merchants and manufacturers. Tencent made money from platforms like JD.com and Pinduoduo through WeChat.
Typically, small fish eat shrimps, and big fish eat small fish.
This is also the reason why Wang Yi had to do Changchao.
If there was no Changchat, if Changchat did not become bigger, then Meiyou Mall and Xingyi Mobile would have to go to WeChat to buy traffic and advertising services.
If the relationship between the two is not good, and WeChat does not provide traffic access for money, then Wang Yi will suffer a lot.
Why can Pinduoduo develop so fast and quickly catch up with or even surpass Taobao?
The big reason is that Pinduoduo is backed by Goose Factory and has the first-level traffic entrance of WeChat and the resource support of Goose Factory.
But Taobao doesn’t!
How scary is WeChat’s traffic and daily activity? It’s better than Taobao + Alipay.
Wang Yi didn’t want to be stuck in traffic, so he had to rely on his own efforts to make Changchao bigger!
And Wang Xing is also here for Changchao’s users and future:
"Director Wang, Meituan is a company with great potential. Although our current situation is not very good, the future is bright."
"Oh? How do you say it?" Wang Yi was noncommittal. This is not just for you to talk about.
Wang Xing narrated: "Other group buying platforms may have captured more cities, but they are useless and unstable and can easily be defeated and taken away by friends!"
"And the cities we Meituan have captured are all impregnable. If our competitors want to capture them, they have to pay at least five times the price!"
Wang Yi agreed very much. What Wang Xing said was indeed true.
He also asked people to investigate the situation of Meituan, and it turned out that he was indeed a bald guy!
Otherwise, Dianping, which is supported by Goose Factory, would not be required to do so.
Wang Yi nodded: "I'm still optimistic about Meituan's strength. But you all have Alibaba's investment..."
Wang Xing sighed: "Don't mention it, Alibaba's ambitions are too big and unscrupulous. They invested 50 million US dollars, and they also wanted to make Meituan completely become an Alibaba company. They even wanted to bind Alipay as the only payment method. It's really
I was speechless. I didn’t agree, and he didn’t even invest more. He completely ignored Meituan’s development and life and death. It was really... ugh!”
Seeing Wang Xing's speechless look, Wang Yi smiled.
Isn’t Meituan Wang Xing hungry? Zhang Hao.
Zhang Hao was a vassal king. He accepted being completely incorporated and bowed his head as a vassal.
And Wang Xing is the same as BYD shopkeeper Wang. They are both emperors. They only want to ascend to the throne and be listed on the market and rule the country!
It is absolutely impossible to accept being completely acquired or annexed.
This is also the essential reason why Meituan stabbed Alibaba in the back and turned to Tencent.
Wang Yi smiled slightly: "Jack Ma went too far in this regard. Meituan has its own development and should not be completely tied down or even annexed!"
"Director Wang, you are so right. If Jack Ma had half the ambition you have, I would be able to laugh out of my dreams."
Wang Xing was extremely excited and determined.
It seems that Wang Yi is different from Jack Ma, not so domineering.
With Wang Yi's investment, Meituan still has the final say, and it will only develop better and achieve mutual benefit.
He immediately said: "Dr. Wang, I wonder if you are willing to invest in Meituan?"
Wang Yi took a deep breath: "You are a down-to-earth person, just like Mr. Wang, BYD's boss. I'm optimistic about it and you can consider investing in it!"
"Thank you, Director Wang, thank you!" Wang Xing beamed with joy: "Don't worry, Director Wang, I will give you a satisfactory price, which will be calculated based on the price of the B round of financing in June last year!"
"Okay!" Wang Yi nodded, this Wang Xing will do something.
There is no way, the current development of Changchao is so fast that Wang Xing has to make arrangements in advance.
Now with Xingyi Technology’s investment and Changchao’s traffic support, Meituan doesn’t have to worry about whether it will succeed or not!
On the contrary, if Wang Yi invests in competitors such as Dianping, it will be Meituan’s nightmare!
"Director Wang, this is Meituan's historical financing situation, share structure information, and valuation. Please take a look." Wang Xing took out a document and handed it over.
Wang Yi took the document and looked at it carefully:
First round of financing: In August 2010, five months after Meituan was established, Sequoia Capital made a strategic investment of US$12 million, accounting for approximately 5% of the shares. Meituan’s post-investment valuation was approximately US$53.44 million.
Second round of investment: In July 2011, Alibaba and Sequoia Capital invested US$50 million in the second round of investment.
After the investment, Meituan was valued at US$9.6 billion.
In the current equity structure, Wang Xing and the founding team hold 7% of the shares.
First and second round investors such as Sequoia and Alibaba account for 3% of the shares.
In order to avoid Wang Yi misunderstanding, Wang Xing quickly said: "Dr. Wang, don't worry. Sequoia has a very good relationship with us and has already communicated with us. They are happy to introduce investment from Xingyi Technology. Although Ali objects, currently Ali only
Financial investment does not involve other business cooperation. Moreover, the founding team and I hold the controlling stake and have absolute say!"
The meaning is very clear. Sequoia invests in Meituan to make money. It hopes that Xingyi Technology will join in to make Meituan's valuation higher. Once it is listed, Sequoia can also make more money by cashing out.
It can be said that the entire Meituan board of directors, except Alibaba, welcomes Xingyi Technology.
As for Ali, it doesn’t matter. His right to speak is limited, so it’s useless to object. Just ignore him!
Wang Yi smiled: "You are decisive in killing, you are a person who can do great things!"
"Thank you, Director Wang, for the compliment. Everything is for the development of Meituan." Wang Xing made no secret of his ambition.
In order to introduce Xingyi Technology and break up with Alibaba, we made a desperate move!
"Okay, then how do you want me to invest?" Wang Yi kicked the ball to Wang Xing: "In other words, what does Meituan need now? It should not just be funds, right?"
Wang Xing nodded: "Yes, I hope that Director Wang can provide an investment of 40 million US dollars, as well as traffic support for Changchao, and advertising services from Xingyi Video and other channels!"
Wang Yi smiled heartily: "40 million US dollars is no problem, and chat traffic support and advertising services are no problem. In addition, I will give you a first-level entrance to chat!"
Changchat version 0 covers the functions of WeChat 0 and has a discovery page online.
However, the current discovery page only has four entrances: Moments, Peripheral, Listen, and Meiyou.
Among them, take a listen to Xingyi Music, which supports sharing playlists directly to your circle of friends.
And below the surrounding area, there are people around the secondary entrance, surrounding tours, and surrounding food.
After the 0 major update, the discovery page was launched with the fifth entrance - Meituan.
This kind of location is not generally good.
“The first-level entrance to chatting!”
"Thank you, Director Wang!" Wang Xing was excited. Chatting about the first-level entrance was what he needed most!
Anyone can invest money, and traffic and advertising can be bought anywhere.
But the first-level entrance to Changchao is different. It is used internally by Xingyi Technology and will not be sold to the public at all.
It cannot be bought with money at all, only allies with deep strategic cooperation can buy it.
In his previous life, in the early days of WeChat before it became big, Director Ma never imagined that the traffic entrance would be so important and valuable, so he discounted the first-level entrance into a stock price discount and gave it to investors for free!
For example, in 2014, Tencent invested US$400 million in Dianping, accounting for about 20% of the shares, and had the right to acquire another 5% of the shares before listing.
But in 2014, Dianping’s valuation had already exceeded 2 billion U.S. dollars. The reason why it was sold to Tencent at a low valuation of 2 billion U.S. dollars was to exchange for the first-level entrance to WeChat!
The same is true for Tencent's investment in JD.com in 2014.
JD.com sold its shares to Tencent at a low valuation and replaced it with WeChat's first-level entrance for five years.
But after the five-year contract expires, if you want to continue to maintain the entrance, you will have to pay an annual fee.
And it is no longer a first-level entrance, but a second-level entrance.
From the first-level entrance on the WeChat "Discover" page to the second-level entrance on the "Me-Service" page.
Even the secondary entrance can only be used by a few high-quality companies invested by Tencent: Meituan, JD.com, Pinduoduo, Beike, Zhuanzhuan, Vipshop, and Didi.
The price is extremely high!
In 2019, JD.com spent US$800 million in three years in order to continue to maintain the secondary entrance to the WeChat service page!
On average, it’s 1.4 billion yuan a year!
Others like Pinduoduo, Didi, etc. also cost a lot of money.
Just from those secondary entrances, WeChat’s annual revenue is over 10 billion.
After some discussions, the two parties finally finalized the investment details:
Based on Meituan’s stock price half a year ago, Xingyi Technology provided Meituan with chat traffic support and advertising services worth US$30 million, as well as US$40 million in cash, for a total investment of US$70 million in Meituan.
In addition, Meituan also provides Meituan with a two-year first-level entrance to Changchao, payment services, map services, and navigation services for free!
Of course, this is just a cooperative method of communication between the two parties. Follow-up procedures must be followed and the board of directors must vote.
However, Wang Xing and the founding team support it, and Sequoia Capital also supports it, so it makes no sense for the small shareholder Alibaba to object.
It can be said that this agreement will 100% pass.
When the board of directors approves and the two parties complete the signing, Meituan's valuation will reach US$6.6 billion.
The shares of Wang Xing and the founding team were diluted from the previous 7% to 44%.
The shares of first- and second-round investors such as Sequoia and Alibaba were diluted from the previous 3% to 24%.
Wang Yi invested US$70 million in Meituan, accounting for 32% of the shares, becoming the largest shareholder!
As for Alibaba's shares, it will be diluted to about 10%.
However, Wang Xing still has the absolute right to speak.
Without him, Meituan adopts an AB share structure with different rights for the same shares.
Wang Xing's shares are all Class A shares, with one vote carrying ten voting rights.
The stocks of investors such as Sequoia and Alibaba are Class B shares, and each vote has only one voting right.
Therefore, even if Wang Xing only holds 10% of the shares, he still controls more than 50% of the voting rights!
It can be said that even if the major shareholder of Meituan becomes Wang Yi, the person responsible for Meituan’s decision-making is still Wang Xing.
Wang Yi didn't care about this.
He has no intention of swallowing up Meituan, it is just an investment.
When Meituan becomes profitable in the future, it will receive dividends every year, and when its market value reaches its peak after listing, it will gradually cash out.
The cooperation was agreed upon, and Wang Xing was determined: "Director Wang, happy cooperation, I will convene a board meeting as soon as possible to formally approve this investment!"
"Okay, I'll wait for your good news." Wang Yixiao said.
"Thank you again, Director Wang!" Wang Xing was overjoyed.
With the first-level traffic entrance of Changchao’s ‘Discover’ page, Meituan’s future is limitless.
After all, Changchao's growth rate is so rapid. In just a short time, it has nearly 50 million users, and its future is limitless.
The traffic purchased by other group buying platforms is in 'Discover-Surroundings-Surrounding Food', which is regarded as the secondary entrance to the discovery page!
Compared with the first-level entrance of Meituan’s ‘Discover-Meituan’, it’s far behind!
This entrance alone is of great significance.
Going online now will bring more than 48 million users of Changchao to Meituan.
When it goes online next month, it is estimated to have 60 million users!
What about three months later? One hundred million?
The impact is huge, huge!
"The investment in Xingyi Technology is so worthwhile and cost-effective. Director Wang has no idea of ​​annexing Meituan. It is much better than Alibaba!"
All expectations were met, and Wang Xing was in high spirits. He issued an announcement on the same day and held a board meeting two days later!
And this investment has also been of great benefit to Wang Yi.
40 million U.S. dollars + traffic advertising services worth 30 million U.S. dollars + Chat first-level entrance authorization, map authorization, and navigation authorization are all free for two years. In exchange for 32% of Meituan’s shares, it can only be said to be a good deal, a great deal.
Of course, Meituan will have to carry out the third round of financing and the fourth round of financing in two years... This is not a problem, Wang Yi will just follow the investment.
Others' investment is real money, but Wang Yi's investment is resource replacement.
Part of the cash + entrance service fee is exchanged for stocks.
The first two years of the first-level entrance to Changchao are free. After two years, the free license expires. By then, the number of users of Changchao will skyrocket and it will become bigger and stronger. Meituan will have to spend real money like JD.com.
That price is terrifying.
Even if it is replaced by a secondary entrance to the service page, it will not reach the RMB 1.4 billion per year in 2019, but it will still be RMB 3.5 billion per year!
And this is still the internal price.
If a company is not invested by Wang Yi, even if it pays one billion, Wang Yi will not give this kind of traffic entrance!
As for Meituan’s takeout business in the future, will it affect Elele?
Wang Yi is not worried about this.
Firstly, Meituan is currently struggling in the group buying field and will not be able to get out of the business in the short term.
When he entered the food delivery business two years later, Ele.me had already grown bigger and stronger with Wang Yi’s support and was not afraid of Meituan.
Secondly, the food delivery market is so big that even if Meituan is not allowed to do it, BAT will do it.
Rather than letting BAT and Ele.me compete for the market, it would be better for Meituan to get involved.
Ele.me is a subsidiary of Wang Yi, and all the money it makes is for Wang Yi.
Meituan has made money, and Wang Yi, as the major shareholder, can also get a share of it.
It is cost-effective no matter what if the fertilizer does not flow to outsiders' fields.
And with Wang Yi here, there is no need for Ele.me and Meituan to engage in a life-and-death price war that would end in lose-lose situations.
There can be cooperation amid competition, and we can join forces to kill BAT’s takeaways first!
As for JD.com, Wang Yi has also considered investing.
I don’t really care about JD e-commerce, but JD Logistics Wang Yi needs it very much.
Once you invest in JD.com, in the future, Meiyou Mall, and even Meiyou International, will all be connected to JD Logistics, and all warehousing will be connected to JD Warehousing, which will be great.
However, Meiyou is also an e-commerce platform. In the future, e-commerce competition will intensify, and it may develop towards a quality comprehensive e-commerce in the future, which will conflict with JD.com's business.
Therefore, investing in JD.com is probably not that easy and requires long-term planning.
Two days later, Meituan held a board meeting.
Wang Xing and the founding shareholders of Meituan, Sequoia Capital, and directors of Alibaba were all present.
For such a major event, all shareholders must be present, and Jack Ma attended in person, but his face was a little ugly.
There is no airtight wall in the world.
Jack Ma already knew about Wang Xing's visit to Wang Yi, so it was hard for him to feel good about it.
Wang Xing glanced at Jack Ma and smiled slightly: "There is only one topic on the board of directors today, which is to introduce strategic investment from Xingyi Technology."
"As you can see, the development speed of Xingyi Technology is terrifying. The growth rate of Changchao is unprecedented. As of last night, the number of users of Changchao officially exceeded 50 million!"
"The sales of Xingyi mobile phones are also terrifying. In just one and a half months, sales exceeded 7.5 million!"
"Even the number of paid members of Xingyi Video has exceeded 14 million. Adding in the 7.5 million free members of Xingyi Mobile Phone, the total number of members has exceeded 21.5 million!"
Every time Wang Xing said something, everyone was excited.
Only Jack Ma's face became more and more ugly, and he was muttering in his heart:
'The development speed of Xingyi Technology is too terrifying. It might become Alibaba's biggest new opponent, or even BAT's new opponent!'
'Oh! It's hard to fix.'
This is also the fundamental reason why he resists Meituan’s introduction of Xingyi Technology investment.
Sequoia Capital doesn't matter. After all, Meituan's Series A financing was invested by Sequoia Capital, and Alibaba was the latecomer.
Moreover, Sequoia Capital only wants to make money and has no ambition.
But Xingyi Technology is different, maybe it is the fourth pole besides BAT!
Ali's future enemy.
But unfortunately, the current situation cannot be stopped.
With Wang Xing's elated attitude, he would even bring in Xingyi Technology's investment if he was afraid of offending Alibaba.
Thinking of this, Jack Ma's face became even more ugly.
Niu Fengnian, a director of Sequoia Capital next to him, was filled with emotion: "Made! I really regret it. How wonderful it would have been if I had invested in Meiyou Technology in advance?"
"It's too late now!"
There is no way, the clothing industry is not a high-tech industry, and it does not take hundreds of millions of dollars to produce output.
On the contrary, the clothing industry can slowly start to develop with a few hundred or tens of millions.
Meiyou started from pure desire style clothing, which is easy to get started. Coupled with the linkage of Meiyou APP and the market performance of pure desire style, it is very competitive.
Then I caught up with "Thirty-day Love", a dark horse released during the National Day, and it quickly became popular all over the Internet. It became bigger and stronger without any investment at all!
"I missed tens of billions!" Niu Fengnian sighed repeatedly: "But it would be good to have the opportunity to cooperate with Xingyi Technology in the future. Meituan is an opportunity. I have to have a good relationship with Director Wang and work on any good projects.
A handful of redwoods!”
Wang Xing continued: "As for Meiyou's terrifying revenue and profits, I won't talk about it. I can only envy you!"
"In a word! Xingyi Technology is the company with the fastest development, the strongest growth momentum, and the most terrifying potential! No one else!"
"The current situation is the pattern of the three giants of BAT, and in the future, it will be the era of four countries of BATX competing for hegemony!"
At this time, Jack's face turned dark: "..."
'You think I don't exist?'
()
Chapter completed!