In order to obtain financing during this period, the Xinlang Weibo team formed several working groups and went to the United States to carry out negotiations, and even stayed on Wall Street in the United States for three to five months.
However, due to practical conditions, Xinlang still has not reached any cooperation intentions with Wall Street capital.
This time Changtian Technology took the initiative to extend an olive branch, and the Xinlang Weibo team did not dare to neglect it at all. Of course, the boss led the team to go there in person.
For this kind of negotiation, Chen Xiao only needs to tell Wang Xiang what he wants. All negotiations will be conducted by Wang Xiang himself.
Moreover, Chen Xiao is far-sighted and realizes that as Changtian Technology expands its business scope, its future investment areas may become wider and wider.
In order to facilitate Changtian Technology’s investment or financing in third-party companies in the future.
Chen Xiao independently established Changtian Technology Yuanfang Venture Capital some time ago.
This time Changtian Technology proposed to use cash to acquire Xinlang Weibo shares, which was completed by Changtian Technology Yuanfang Venture Capital Company.
Of course Mr. Jia was very excited after seeing Wang Xiang.
Because this means that Xinlang Weibo is likely to come back to life.
In order to prepare for this negotiation, Xinlang Weibo's team stayed up for three consecutive nights to improve the information previously submitted to Goldman Sachs and Morgan.
The complete content mainly explains the differences between Sina Weibo and Twitter, the localization of Xinlang Weibo and some advantages over Penguin Weibo.
Jia Zong and the team are still quite nervous.
So after meeting Wang Xiang, Mr. Jia's first sentence was to apologize to Changtian Technology.
The content of the apology is, of course, that Weibo did not immediately delete false negative news involving Changtian Technology.
Mr. Jia’s choice of words is very artistic.
What he said was false negative news about Changtian Technology, not all the news about Changtian Technology.
This concludes some of the information on Weibo - these information are rumors and are untrue.
Don't hit the smiling person with your hand.
Mr. Jia's apology still made Wang Xiang and others feel very useful.
After a brief exchange of greetings, the two sides began to negotiate terms.
Mr. Jia still proposed the plan he had given to Goldman Sachs and Morgan - hoping to raise $200 million, but only offering 15% of the shares.
Negotiation Negotiation is, of course, bargaining.
In the current negotiations, Changtian Technology is still in a clear advantageous position.
After all, Changtian Technology can buy Xinlang Weibo or not, and it does not have the only right to choose.
Xinlang Weibo needs financing, which is a practical problem before Mr. Jia. Xinlang Weibo must raise capital, otherwise it will die.
During the negotiation process, Xinlang Weibo was obviously at a disadvantage.
After all, Weibo has already found some capital in the United States, but the other party does not accept the conditions offered by Xinlang Weibo.
Wang Xiang was too lazy to talk nonsense with Jia Lai.
The conditions have been set. If you want to sell, sell it. If not, sell it.
Wang Xiang said: "Mr. Jia, our plan has made it very clear that the acquisition of 25% of the shares is in cash, not a share exchange of the subsidiary or other financial means."
"And our money comes in one go, without any strings attached."
"I think neither Sequoia Capital nor senior executives or Morgan will be able to offer this condition."
Cash acquisition is really attractive in one step!
Wang Xiang added: "And we have written it very clearly in the plan that we will not interfere with the operation of Weibo."
The acquisition of 25% of the shares for US$200 million is not the bottom line of Changtian Technology.
Chen Xiao is very aware of the value of Xinlang Weibo in the future.
Therefore, the price of Changtian Technology may go up.
Now that it’s all here, let’s look at the price.
Both sides no longer talk empty talk and make excuses.
Mr. Jia said in embarrassment: "Can the purchase price go up? Or can the shares go down?"
Xinlang Weibo was originally backed by the giant portal website Xinlang. It was not short of money at all and did not need financing.
Who would have thought that now that the development has progressed, I have discovered that competitors have emerged, I can't produce my own content, the increase in users is not as much as I imagined, and I am starting to run out of money.
The most important thing is that Xinlang’s heavy investment in the early stage has reached its limit and Weibo is still unable to make a profit, so this round of financing needs arise.
What if Weibo will continue to burn money in the future?
Now he has lost 25% of his shares, which makes Xinlang's life more difficult in the future.
Wang Xiang joked: "Then shall we make a betting agreement?"
"We can spend 200 million yuan to acquire only 15% of the shares, but Changtian Technology wants the operating rights of Weibo. If Weibo makes a profit after one year, Xinlang will again give up 25% of the shares to Weibo for free.
If we are still losing money after one year, then we will increase the total investment shares by $50 million and keep the total number of shares unchanged."
When Wang Xiang revealed the second method of cooperation, Mr. Jia's expression was obviously bad.
After all, Changtian Technology is now a world-famous technology company, and reports or books about the development history of Changtian Technology are also available on the market.
Of course I have seen it, and I also know about Changtian Technology and its glorious battle history.
That is to say, when Changtian Technology entered into gambling agreements with other companies, Changtian Technology never lost.
What Wang Xiang just said has clearly stated that Changtian Technology is very optimistic about the future of Weibo, saying that it will definitely be profitable next year.
But Yingying's premise is that Changtian Technology wants the right to operate Weibo, and if it really makes a profit, he wants 40% of the shares.
This kind of gambler never dares to place bets.
He laughed awkwardly twice.
"If we don't make a gambling agreement, everyone knows that Changtian Technology is always victorious."
"Mr. Wang, since I'm here today, if I can't sign the cooperation agreement, I definitely won't leave."
"Xinlang and Changtian Technology have always had a very good cooperation. When Changtian Technology first established the 11181 website, our Xinlang portal also fully supported it and was the first batch of portals to cooperate with your company's website.
"
"Users introduced from 11181 clicked on our ads, and we will share with your company according to a relatively high share ratio. This can be regarded as resolving some of the financial pressure in the early stages of Changtian Technology's development to a certain extent."
Come and start playing the emotional card.
Wang Xiang did not deny this history. He said every day: "Mr. Chen in our company is a very emotional person. Mr. Chen always remembers the anger and anger in his heart."
"It's because of this that when Mr. Chen heard that Weibo's operation was encountering some difficulties and there were some financial problems, he asked me to formulate relevant investment plans without saying a word."
"But if the two parties cooperate, Changtian Technology will fully support your company in terms of hardware and technical algorithms. You should know that Changtian Technology is among the best in the global semiconductor industry. And our computer algorithms and artificial intelligence are also among the best in the world.
The advanced ranks.”
After hearing what Wang Xiang said, Jia Lai also felt that it made sense.
During this period, Weibo is expanding its capacity and optimizing its algorithm. It is very clear to me that it relies heavily on hardware!
If we can get the support of Changtian Technology's hardware, especially the support of carbon crystal hard drives, carbon crystal storage and the latest chips, then Weibo will definitely get twice the result with half the effort.
He came over and said, "Mr. Wang, what do you think?"
Wang Xiang sighed and said: "How about this? Since both of us are sincere, let's each make concessions."
"Changtian Technology increased its investment by another 50 million US dollars, and acquired a 25% stake in Xinlang Weibo for a total of 250 million US dollars."
The current equity structure of Xinlang Weibo is very clear.
Xinlang's senior management holds 5% of the shares, and Xinlang Company holds 95% of the shares, making it the largest shareholder.
250 million US dollars to acquire 25% of the equity of Xinlang Weibo.
This is completely a premium purchase. After all, according to the current market valuation, Xinlang Weibo, as a loss-making company, cannot reach such a high premium rate.
I hesitated.
After all, the conditions offered by Changtian Technology are still acceptable.
If there is no financing, Xinlang Weibo will die.
Now that Weibo is dead, what else do we need equity for?
This condition is also within the limited power of Qia Lai, so he can agree to it without having to report to Xinlang headquarters.
Wang Xiang saw some changes in Jia Lai's expression. He knew that the other party should recognize the condition he had mentioned and it was acceptable.
He said: "Of course 25% of the equity corresponds to 25% of the voting rights. This is undoubtedly true, but we also ask for one more thing. Although Changtian Technology does not participate in the operation of Weibo, we believe that Weibo's team is the world's largest
Excellent operation team, but Changtian Technology must have a veto power to protect our interests."
"And we will participate in changing the rules and regulations by which the board operates to protect our rights."
These conditions were all considered by Chen Xiao in advance.
After Changtian Technology obtained 25% of Weibo's equity, what it wanted was not Weibo's tiny dividends.
Changtian Technology still doesn't like such a small dividend, so it might as well sell more chips.
The 25% equity is mainly to give Changtian Technology a sense of participation and a dominant position in the future Internet network voice.
Weibo will become an important position for online public opinion in the future, and may even be an irreplaceable position.
When Changtian Technology owns 25% of the equity of Weibo, Chen Xiao believes that if Changtian Technology is not happy with all the news involving Changtian Technology on the Weibo platform, there will definitely be no way to send out the relevant news.
Not to mention those unfriendly remarks directed at Changtian Technology.
This is the significance of 25% equity.
The veto power is to ensure that Changtian Technology can protect its own interests from being infringed upon in the future operations of Weibo or in the process of refinancing and IPO.
Funding and equity were easy to negotiate, but the veto power gave Jia Lai some hesitation.
Jia Lai said: "Please give us some time-related information, Mr. Wang, and we will report it to the head office."
Wang Xiang's facial expression became serious at this time, "Mr. Jia, we only give you two hours. I hope you can reply to me in two hours. Changtian Technology does what it says, if two
After hours, we have not received a definite reply from your company, and this negotiation will be put on hold indefinitely."
Jia Lai also became nervous because he believed that every word Changtian Technology said must be implemented. This is the influence and credibility a company has outside.
Jia Lai said: "Two hours, just two hours."
Jia Lai quickly returned to the hotel with his team, and then called the head engineering company to apply for a video conference.
Before the two-hour limit, Xinlang's senior management finally reached a consensus - agreeing to the acquisition agreement of Changtian Technology.
Jia Lai immediately informed Wang Xiang of the headquarters' decision, and the two parties immediately signed a financing agreement.
Changtian Yuanfang Venture Capital, a wholly-owned subsidiary of Changtian Technology, acquired 25% of the equity of Xinlang Weibo for US$250 million in cash. After the acquisition, Changtian Technology will own 25% of the equity of Xinlang Weibo.
25% of the voting rights and one veto of the Board of Directors.
The equity structure of Xinlang Weibo is as follows.
Heart wave: 70%
Changtian Technology: 25%
Xinlang Executive (Individual) 5%:
After the cooperation was signed, Jia Lai and his team returned to Yanjing very excitedly. The funding issue was resolved, which was an absolute benefit for Xinlang Weibo.
Weibo immediately announced the relevant news, which attracted great attention from the media industry and made Penguin nervous.
In the media world, this is how everyone commented on this equity acquisition agreement.
"When Changtian Technology was attacked in the public opinion circle, the measures they took were not only to fight back against the attackers, but also to acquire part of the equity of the platform media."
"If you scold me, I will buy you and shut you up! So proud!"
The most worrying thing is of course the penguins.
Weibo was not first invented by Xia people, but was modeled after Twitter abroad.
In the first half of 2010, the number of tweets on Twitter exceeded 5 billion, and Twitter’s valuation reached tens of billions of dollars.
It was because of seeing the beauty of Twitter that Xinlang started Weibo, and Penguin immediately followed suit.
Penguin is just waiting for Xinlang Weibo to run out of money, so that its own Weibo can achieve a monopoly in the industry.
Unexpectedly, Changtian Technology actually bought a stake in Xinlang Weibo at a price of 250 million yuan, which made Penguin Weibo face severe challenges.
When it comes to money, Penguin certainly thinks he is very rich, but compared with the giant company Changtian Technology, Penguin's little money really pales into insignificance.
Shenzhen City, Penguin Headquarters.
Penguin Weibo Business Group quickly assessed the impact of Changtian Technology’s acquisition of 25% of Weibo’s equity.
At the Xinlang Weibo headquarters, it seems that in order to submit a letter of nomination to Changtian Technology, Mr. Ji ordered that all negative topics about Changtian Technology on Weibo be deleted (deleted), and the negative news from Xinyan Media was specially It was Hu Ming's negative news that made the headlines.
This time, Xinyan Media’s Weibo exploded!
Nothing but insults, nothing but insults.
"What are your intentions in letting a Chinese journalist write a commentator's article criticizing Changtian Technology, which has made significant contributions to the country in the field of science and technology?"
"The Xinyan media is too disgusting and the images are too ugly. We strongly demand that Hu Ming be fired."
“When will junk media go bankrupt?”
The top management of Xinyan Media was very nervous at this time. There were still twelve hours left before the deadline given by Changtian Technology.