In the Internet age, things are actually not as good as people think.
Usually, many of the grand events that everyone sees are caused by burning money.
The first big burst of the Internet era happened around 2000 years ago. In the previous few years at that time, various websites were extremely popular. Yahoo had a market value of 300 to 400 billion U.S. dollars. Cisco even exceeded 500 billion U.S. dollars. Now it collapsed.
Nortel Networks, which was almost acquired by Xiao Qi, also has a market value of hundreds of billions of dollars.
In people's eyes, this seems to be the advent of the Internet era.
But the facts soon gave everyone a slap in the face. Around 2,000 years ago, the Internet bubble collapsed, and major websites died one after another. Most of the remaining ones were just hanging on, and few could make a comeback.
Even after 2010, as the economy slowly began to recover and Internet technology was once again hyped, there were still very few that actually made money.
Many successful websites simply found a chance to survive before their money ran out.
And those websites that have not found a breakthrough will be finished after burning money, and there will be no trace left.
Of course we can be successful in le, fae, and titter, but few people know that hundreds of Internet companies in the United States begin and go bankrupt every year.
The Internet is not so gentle, and competition is so cruel everywhere.
After 2010, a trend has emerged, that is, giant crocodiles continue to devour small promising companies to increase their own strength, while also preventing new competitors from growing.
Companies such as Google, Apple, Samsung, Microsoft, Amazon, FAE, etc. have at least several acquisitions a year, and as many as twenty or thirty.
Many potential companies, such as tube, zappos, skybe, fouquare, instagram, and ad mob, have been acquired by large companies. Small companies seem to have no room for development.
Of course, this is a good thing for large companies, as they can achieve the most with the least cost.
Xiao Qi also likes this. Especially acquiring companies in the United States to expand his Xiao family industry and allocate it to his wives as private property.
It was under this circumstance that the interoperable company was established.
The model of the interoperable company is ad mob, but the Baidu and Google advertising formats on mobile smartphones are not restricted by many patents. Xiao Qi himself has Infineon, Nortel Networks, and
The patents obtained from Google's exchange are enough for him to use.
No one knows better than Xiao Qi how big the mobile phone market will be in the future.
By the end of 2o13, the number of smartphone users has reached more than 1.5 billion. As more and cheaper smartphones are released, this number will increase to at least 100 million.
In a large market with a population of 100 million, even if it does not occupy a monopoly position and only holds more than 20% of the market share, that is already great.
But now is the time when mobile phone advertising has just begun to develop. The market size is only about 700 million people, and it is not that mature yet. Therefore, AdMob was only bought by Google for US$750 million in November last year. It is not
Considered expensive.
Google bought Ad Mob. It does not mean that it will develop the mobile phone advertising market on a large scale, but it will be used as a reserve until they promote the Android system and greatly develop the smartphone system market.
Turn over and show ad and touch b.
By then, Google will be able to make a lot of money simply by running ad monetization ads on the Android system.
Xiao Qi has known Google's plan for a long time, and what he wants to do now is to let the interoperability company enter the mobile phone advertising market in a big way, significantly increase his market share, and confirm his market leadership.
In fact, there is nothing difficult about this. After finding advertising talents, especially after poaching a few elites from AD Mob, the Intercom Company, under the leadership of Eo Bogosola, took the 1 billion given by Xiao Qi.
U.S. dollar investment. Crazy openings hit the market.
Bogosola was the former executive vice president of Sophia International Advertising Company, one of the largest advertising companies in the United States. Xiao Qi hired him with a high salary of 6 million euros plus stock dividends.
Facing a brand-new field, Bogosola is ambitious. In addition to building its own network platform and writing various advertising programs, the most important thing is to start cooperating with major social platforms and major websites.
The distribution of advertisements on the Internet does not mean that you can directly go to which web page or which social platform.
If someone does not agree with you to do this, but you promote advertising on their copyrighted page, then they can sue you.
You must seek their cooperation intentions before you can place ads on these websites.
Although Intercommunication Company has a $1 billion investment from Xiao Qi, they are a new company with no reputation at all.
The only one who is famous is Bogosola, who has worked in the advertising industry for 20 years.
Bogosola's most important asset is his connections.
As long as he has dealings with advertising-related companies, Bogosola has dealt with 8 advertising production companies in the United States and is familiar with 177 of them.
Moreover, since 5 years ago, he has been responsible for an additional task of dealing with online content providers, and has a good relationship with Internet giants such as Mark Zuckerberg, Page, and Bill Gates.
This is why Xiao Qi values him.
Bogosola is very realistic. He knows that if someone has a good relationship with him, it is a personal relationship. If you want to connect the company's affairs with personal relationships, it would be too naive.
But now that he has money and is backed by Xiao Qi, a world-rich man, he can use money to create a market and get everyone to cooperate with him.
Where is the biggest profit point for today’s Internet companies?
Don’t you rely on advertising?
So as long as they do more advertising and the sharing is good enough, then there is no reason for them not to join their own advertising network.
On the other hand, for those product manufacturers who want to advertise on the new media of the Internet, who doesn’t want to advertise more and spend less money?
Simple!
I have plenty of money here. In order to attract you at the beginning, I entrusted you with advertising. I can charge you 20% off or even 30% off the market price.
As long as you get used to advertising with me, I can in turn bind content providers and make them more willing to join my network.
In this way, the three parties become one, and the interoperable company will become famous!
Bogosola thought so, and he did the same.
Since its official launch in May, the interoperability company has increased the share given to content providers by 30%, and at the same time reduced the advertising costs of advertisers by 20%.
Calculated in this way, the gross profit of the interoperable company is only 12%. After excluding taxes, office work, maintenance, etc., it still suffers a lot of losses.
But after such a month of development, with the promotion of Bogosola, the total advertising amount of the intercommunication company has exceeded 3.2 million US dollars, which is almost the same month as the AD Mob in the middle of last year.
Google has long been aware of the interoperability company's market-disrupting behavior, but after Page inquired about its background, it became somewhat silent.
After all, few people can beat Google when it comes to burning money, but Xiao Qi is the one who can definitely beat Google.
Moreover, Xiao Qi can continue to work in the market regardless of profits and lose money, but Google must be responsible to its shareholders. How can it be possible to continue to lose money in business?
But even so, Page still issued an order to increase the capital of 300 million US dollars to ADMob, allowing them to speed up their development and compete with interoperable companies for market share.
Since Xiao Qi is so optimistic about this industry, Google will definitely enter the competition.
Although Google’s money is not as much as Xiao Qi’s, sometimes money is not all that is needed!
For a moment, Page regretted the last time he gave in and reached an agreement with Xiao Qi. At that time, Google handed over too many exclusive patents, otherwise Xiao Qi would not be able to enter the mobile phone advertising market so easily this time.
!
Compared with the smooth sailing of Intercommunication Company, the Shengpotian Company that Xiao Qi wanted to acquire was not that easy.
Even though Milner has raised the acquisition price to US$370 million, and the founding team can all become multimillionaires as long as they sell their shares, many of them are still hesitant and do not want their companies to be controlled by Xiao Qi.
To be honest, Sweden is a country with high welfare. Entrepreneurs like them don't have to worry about food and clothing at all. They are not even poor. So far, they have only introduced one investment.
It's a pity that the capital company introduced only held 15% of the shares. Otherwise, it would have made more than 700% in one year. They had already announced in a hurry that they had sold them all to Xiao Qi.
Therefore, Milner said that if you want to acquire Shenpotian Company, I am afraid it will take a while of hard work.
Xiao Qi wasn't too worried.
First of all, his minimum limit is not 500 million. If he can win around 800 million, Xiao Qi will not hesitate.
Secondly, what Milner is best at is communicating with people. In this regard, he understands the true meaning of the Chinese word "grinding". Anyone who is entangled by him usually gives in under such circumstances.
Milner can even take care of Zuckerberg, so it’s no big deal for a mere company named PoTian!
(Brothers, please subscribe more!) (To be continued.)