Chapter 402: 140 million US dollars, transaction!

At noon on August 17, Xu Xin flew to Beijing from Hong Kong Island.

Last night, when Xu Xin heard that Gao Yang was interested in introducing VC, she was also very excited. 51 Guardians reached 50 million users in a year, and the free mode changed the desktop antivirus software market.

In Xu Xin's eyes, the business model of this project is amazing, and free is the most expensive.

In the desktop antivirus software market, brands in all sizes and big have fought for more than ten years, but when the 51 guards appeared, they were like the Tathagata's magic palm coming from the sky, and they were all slapped to death.

When Xu Xin came to Beijing again, naturally Gu Yawen went to the airport to greet her and Shao Hanyun accompanied her.

Last time I came to Beijing, Xu Xin learned that Gao Yang was a shareholder of Hai, so she proposed to go to eat hot pot at noon.

Gu Yawen immediately called Jian Yu, reserved a small private room, and notified Gao Yang to go to Hai to get along.

When eating hot pot, Xu Xin had heard of Gao Yang's arrangement for 51 Guards to sell most equity. She felt that it was a mystery and it was difficult to understand:

"Gaoyang, you won't be stupid. Since you are willing to let 51 Defenders go to the Nasdaq IPO, then keep it yourself. According to the current development trend of 51 Defenders, in three or four years, there will be hope to package and list on the US stock market.

After listing in the US stock market, it can be valued at about US$3 billion. 51 Group holds 60% of the shares, which will be about 52% at that time, which will be $15.6 billion.

Now, it’s a pity that you transfer 40% of your equity in tens of millions of dollars.

If you are short of funds, I will invest it for you..."

Gao Yang smiled and said, "Sister Xin, this time 51 Guardian's sale of most equity is mainly because the company needs to optimize and adjust the platform projects. In addition, you know the work factors of Yawen's father, and our company is not suitable to go directly to the US stock market."

Xu Xin shook her head: "Gaoyang, you are really worried. The projects of 51 Group were built by you and Yawen independently starting a business, and they have nothing to do with Uncle Gu.

My dad is also at the department level in a state-owned enterprise. He just retired. I have worked so hard in my business over the years, and I have never relied on my dad."

Gao Yang said: "Sister Xin, 51 Group has this arrangement, and we have our own considerations, so don't worry. If you are willing to cooperate with Zou Hongwei, then this time will be an opportunity."

Xu Xin thought about it and said, "Okay, it's your business that you want to play. How do you feel like Zou Hongwei?"

Gao Yang asked: "Zou Hongwei is also a celebrity in the Internet circle. Sister Xin should know him, right?"

Xu Xin said: "Yes, I know, I also know that he is an IDG partner, but I have never been in contact with him. I want to ask you what your impression of him?"

Gao Yang said: "I think he is very good, capable, qualified, leadership, keen business vision, and means. Qihu Technology launched a 369 secure browser. I think it is a perfect match with 51 Defender, so I consider discussing cooperation with him."

Xu Xin asked again: "Will 51 Group support the development of Qihu Technology in the future?"

Gao Yang said: "Yes, first, in terms of traffic promotion, we will support Qihu Technology. Second, in terms of anti-virus, 51 Guardian will focus on the enterprise-level market in the future. With Qihu Technology, you can jointly do some basic research and development, and you can also establish a collaborative sharing mechanism in terms of virus monitoring and tracking. In short, there are many areas where you can cooperate and communicate."

Xu Xin thought about it and said, "If you have such an attitude, I'm relieved. Have you talked to Zou Hongwei? How much money can venture capital invest in today?"

Gao Yang said: "Sister Xin, what I introduced to Zou Hongwei is that you can invest about 30 million US dollars, how about it?"

Xu Xin said: "Yes, you can still invest 30 million. Let's talk about it later. It depends on how Zou Hongwei plans and what specific plans are..."

After dinner, Gu Yawen accompanied Xu Xin home to rest. Gao Yang called Zou Hongwei and made an appointment for an evening dinner.

At the dinner party in the evening, both sides were still the people last night, but there was a Xu Xin representing today's venture capital.

He was still scheduled to have dinner at the Beijing Club. At the dinner table, Xu Xin communicated with Zou Hongwei in a preliminary manner through casual chat.

After a meal, he sat in the tea room. Chang Dong took out his laptop and connected the projector to formally introduce the relevant situation of Qihu Technology, as well as Qihu Technology's next development plan and medium- and long-term related project planning after taking over the majority equity of 51 Guardians.

Gao Yang could see that Zou Hongwei still took Xu Xin’s visit seriously. The PPT explained by Chang Dong should have been made urgently this afternoon.

Chang Dong gave an explanation for more than half an hour, and Zou Hongwei made some additional additions.

Xu Xin was quite satisfied with the project development plan that Qihu Technology has urgently prepared. After asking many details, she said that today's venture capital can consider investing 30 million US dollars to jointly take over the majority equity of 51 Defenders with Qihu Technology.

Xu Xin asked: "Mr. Zou, today's venture capital investment is 30 million US dollars, and it is receiving 15% of the equity of 51 Guards. After this investment is completed, how can it be converted into equity of Qihu Technology?"

Zou Hongwei smiled and said, "Mr. Xu, if we reach a cooperation with 51 Guards, the next step is to discuss and arrange the new structure of qihu Technology based on the valuation of qihu Technology based on the merger of the two companies."

Xu Xin asked again: "How can Mr. Zou consider the current valuation of Qihu Technology?"

Zou Hongwei said: "Mr. Xu, Qihu Technology currently has a BBS search business and has launched a new 369 secure browser, with more than 1 million users.

We have also started to develop free antivirus software. After taking over 51 Guards, this business can be merged immediately.

In order to show sincerity in cooperation, we discussed internally and determined a relatively cheap valuation level of US$20 million."

Xu Xin smiled slightly: "Mr. Zou, I am a person who speaks more directly. Without considering the 51 Guards, Qihu Technology is currently not worth even 10 million US dollars, and I will give it at most 5 million US dollars.

Today's venture capital is investing in 51 Defender. If 51 Group does not transfer 51 Defender, it will be difficult for Qihu Technology to get up in the free antivirus market.

51 Defender has an absolute leading advantage, and Tencent has also entered this market. With the traffic advantages of Tencent and 51 Group, Mr. Zou will not be confident that Qihu Technology can still take the lead, right?"

Zou Hongwei smiled and said, "Mr. Xu believes that Qihu Technology's current valuation positioning of 20 million US dollars is relatively high, and I can understand it. However, the valuation of 5 million US dollars is too low."

Gao Yang said: "Mr. Zou, Mr. Xu, I suggest you.

Qihu Technology took over the operation of 51 Guardians and is also a partnership with 51 Group.

Before Qihu Technology's IPO, various platforms under 51 Group could provide publicity and promotion channels for Qihu Technology at a 20% to 30% off the market price.

As an exchange, Qihu Technology ignores the existing valuation and converts the equity of 51 Guards into Qihu Technology's equity in equal proportions?"

Xu Xin said: "I think Mr. Gao's method is good and easy to deal with. After Mr. Zou and Qihu Technology took over 51 Guardians, in terms of promotion, 51 Group has full support, so there is hope to increase traffic as soon as possible, especially the 369 secure browser that has just been launched."

Zou Hongwei said: "If this arrangement is made, it is not impossible. However, can the promotion support of 51 Group's various platforms be 15% off at the market price?"

Gao Yang thought for a while and said with a smile: "You can get a 15% discount, but the deadline is two years. After that, until Qihu Technology is on the market, you can only get a 60% discount at least."

Zou Hongwei said again: "Mr. Gao, we can agree to this arrangement.

But I still have a hope that the equity transfer of 51 Defenders, in addition to the plans of Today Venture Capital to take over 15% of the equity, Qihu Technology, IDG and I personally hope to jointly take over 55% of the equity."

Gao Yang was stunned: "Mr. Zou hopes that we will transfer a total of 70% of the equity of 51 Guards?"

Zou Hongwei said: "Yes, Mr. Gao, from the standpoint of Qihu Technology, we still hope to absolutely hold the shares."

Seeing that Gao Yang seemed a little embarrassed, Liu Xu whispered: "Mr. Gao, I can transfer 5% of my shares here, so I will leave 5% of my shares in person."

At the beginning, Liu Xu joined 51 Guards with the guard point software team, holding a total of 20% of the shares of 51 Guards, of which Liu Xu personally held 15%, and the other 6 people held another 5%.

This time, 51 Defender plans to transfer most equity at a valuation of US$200 million. In Liu Xu's team, the other six people chose to sell all their equity to improve their lives.

The 5% equity is a real $10 million. In just one year, the profit has increased by more than 20 times.

Gao Yang thought about it and smiled at Zou Hongwei: "Okay, Mr. Zou, we can agree to your request."

When we were chatting last night, Zou Hongwei originally hoped to take over all the business of 51 Guards as a whole and take away the entire team, but unfortunately, Gao Yang and Liu Xu did not agree.

51 Group will still retain the 51 Defender company, but only transfer the desktop-level business, and the enterprise-level business will remain.

Liu Xu personally is more willing to stay in 51 Group to develop.

Now Liu Xu is willing to transfer 5% of the 51 Defender's equity. Gao Yang decided to reduce the 51 Group's shareholding ratio to 15% and transfer 45% to satisfy Zou Hongwei's wishes.

In this way, the total consideration of the transaction is US$140 million, and all of them are paid in cash.

The framework transaction plan was quickly decided, and the next step was to follow the process, conduct evaluation and due diligence, and agreed to be completed by the end of August.

What 51 Group intends to arrange for sale is only the majority equity of 51 Guardian's desktop-level business, including products, R&D, intellectual property rights, and relevant personnel willing to join Qihu Technology.
Chapter completed!