Chapter 422 The establishment of Moyin Technology and the implementation of a new strategy!
In the conference room, the first person to report was Lu Qi, the rotating president.
"In accordance with the chairman's previous instructions, during the National Day holiday, the group officially activated the shell company Moyin Technology and plans to allocate one billion funds to incubate the short video business."
Still the same old rules.
The early incubation of Moyin Technology is left to the group’s technology center and operations center.
The technology center is mainly responsible for the research and development of Moyin app, while the operation center plays a role similar to that of an M organization. From now on, it will take the initiative to dig out and cultivate short video experts in various places.
The two complement each other and are indispensable.
Although short videos exploded in 2016, as early as 2013, China’s short video field was already blooming.
There are many people testing the water.
Internet companies involved in the short video business include start-ups such as Shou Shou and Miaopai, as well as Internet giants such as Tenda and Qiandu.
Tenda launched Weishi, and Qiandu launched Meipai through the acquisition of Motu Xiuxiu.
Miaopai has reached a strategic cooperation with Bibo.
In the future, short video apps such as Little Red Lips, Frog Video, and Xiaoka Show will be launched one after another.
The famous Huoshan Short Video and Douyin had to wait until 2016 to be launched. In the same year, Li Video was launched, breaking through the ceiling in the short video field.
It also gave birth to new giants in the Internet industry.
The presentation form of content has gone through the process of presentation from text, to graphics, to video, and the presentation feature of short video is that it can satisfy people's content consumption needs to the maximum extent in fragmented time.
Therefore, it is inevitable that short videos will become popular.
In other words, the presentation of short videos is superior to pictures and texts to a certain extent.
Therefore, when there is not much difference in users' viewing costs, short videos that combine shooting techniques, music, stories, and images can meet users' content consumption needs in a more diverse way.
The algorithm recommendation mechanism, which takes user matching degree, video popularity and release time as the main recommendation dimensions, has optimized the fragmented entertainment consumption experience of users to a certain extent.
Recommended through algorithms.
Users can get more accurate and satisfactory content faster from the complicated short video content.
The reason why Douyin, which started late in the original space and time, has been able to catch up and surpass pioneers such as Weishi and Miaopai in one fell swoop relies on its excellent algorithm recommendation mechanism.
As for Tenda's Weishi, the initial product logic was just a "replica" of long videos.
Failure is inevitable.
The failure of Weishi also caused Tenda to miss out on one of the biggest trends in the mobile Internet field, having personally cultivated a strong competitor like Character Jump.
The result is--
In 2017, Tenda awkwardly restarted the Weishi project, but the result was still tepid;
In 2018, Tenda used its money-making ability to invest in slow players many times and achieved huge returns;
Later, using the flagship product of Weixin, we successively launched the "Video Account" and "Live Broadcast" sections.
Although it eventually occupied a place in the short video field, Tenda failed to prevent the rise of character jumping, resulting in mobile Internet traffic being heavily divided by character jumping.
It also laid the biggest hidden danger for Tengda’s subsequent decline.
Of course Zhang Shuo cannot make the same mistake again.
In fact, the advent of Tiantian Toutiao has suppressed the character jumping of Original Time and Space to a certain extent. If Buya intervenes in the short video field at this time, character jumping is destined to not be able to rise as fast as Original Time and Space.
When it comes to algorithm recommendation mechanisms, the algorithm laboratory under Fertile Land Research Institute is capable of making character jumps.
The technical center will also be given maximum technical support.
Zhang Shuo’s planning, coupled with the technical support of Fertile Land Research Institute and Technology Center, coupled with the financial strength and operational capabilities of Germination Group, it is difficult to imagine that Magic Sound Technology will fail.
This is an incubation operation that is destined to succeed.
The success of Moyin Technology will truly establish the dominance of the Sprout Group in China's Internet field and become an invincible existence overpowering the three giants.
Become an existence that no one can shake.
"The incubation of Moyin Technology is of great importance, and I hope Mr. Lu can keep an eye on it personally," Zhang Shuo said.
"good!"
Lu Qi didn't have a deep understanding of the prospects of short videos before, but after seeing the planning plan written by the big boss himself, he immediately realized what a huge trend this was.
Naturally, we need to pay more attention to it.
"And one more thing."
Lu Qi continued to report: "Qiandu has contacted Qinghe Technology and hopes to negotiate the renewal of the frog browser search box next year."
"What's the quote for kilowatt-hours?" Zhang Shuo asked curiously.
"3.5 billion."
"so tall?"
Zhang Shuo raised his eyebrows slightly. If I remember correctly, the quotation last year was only 850 million.
A full fourfold increase.
Even so, in one year, the market share of Frog Browser has continued to rise. Coupled with the great sales of Maili and Maili tablets, the number of hardware devices bound to Frog Browser has increased dramatically.
Add in the inflation factor, but if it triples, it will be as high as the sky.
"I have learned from the side that there are three reasons why Qiandu quoted such a price."
"First, I'm worried about being cut off by ancient songs."
Although Guge has long withdrawn from the Chinese market, Maili Hardware has a considerable market share not only in the Chinese market, but also in the global market, especially the Southeast Asian market.
The frog browser bundled with Maili hardware has naturally caught the attention of Gu Ge.
"Because of the fear of being intercepted by Gu Ge, Qiandu's quotation covers the overseas market of Frog Browser and will also be bound to Qiandu's search box."
Qiandu also has the ambition to expand overseas markets, although it has not been very smooth.
"The most important point is that the thousand-degree premium quotation is actually to prevent us from entering the search market."
The Wheat 2.0 released at the Maili Autumn Conference really shocked Qiandu, especially the image search and language search technology displayed in Wheat 2.0.
In a sense, it has even reached the front of Qiandu.
This chapter is not over yet, please click on the next page to continue reading the exciting content! This has to make Qiandu feel a sense of crisis.
And a giant like Sprout Group has a huge ecosystem in the Internet field. If it really wants to get involved in the search business, it will definitely be a super threat to Qiandu.
It may even threaten the foundation of Qiandu.
Just like social networking is the pillar of Tengda and e-commerce is the pillar of Ali, search is also the pillar of Qiandu.
There absolutely cannot be any problems.
In view of this, Qiandu negotiated with Qinghe Technology about the renewal of the search box contract two months in advance, and even offered a price that Qinghe Technology seemed unable to refuse.
"The question now is, should we accept Qiandu's offer, or should we refuse to cooperate with Qiandu and expand our search business on our own?" Lu Qi asked a question.
In fact, I was asking for Zhang Shuo's opinion.
"What do you think?"
Zhang Shuo did not rush to a conclusion, but looked at several other executives.
"If you can, why not?"
Lu Kai has always been a very aggressive executive. "Qiandu itself is already in decline, and it coincides with the time window for search technology innovation to replace it."
In this way, after overpowering Tengda, Germination can overwhelm Qiandu.
If I fight for Xixi and gain some more energy...
Maybe, Moya can really defeat the Big Three in three fields at the same time, one against three.
It's exciting just thinking about it.
"If we want to conduct a search, do we need to form a new company or department?" Jiang Yue said.
It's like expressing disapproval euphemistically.
"Definitely."
Lu Qi nodded, "The group's current search technology is mainly used for the built-in search of its own apps, and does not have much commercial appeal. If we want to take the road of commercialization, we will almost have to copy Qiandu and build a huge team.
marketing, local promotion and advertising teams.”
"Then let's choose to cooperate with Qiandu."
Zhang Shuo finally made a decision, because the Sprout Group's attitude toward the Internet business was to shrink, and it also wanted to incubate the short video business, so it couldn't blindly expand.
Within ten years, the entire Internet industry will usher in a round of shrinkage.
Zhang Shuo does not want to say that the Sprout Group is expanding aggressively in the Internet field and recruiting people, and then when the Internet winter arrives, it will force employees in the Internet business line to "graduate."
It would be too ugly to look at the food.
Instead of expanding new business without limit, it is better to collect rent from Qiandu with peace of mind.
Isn’t it nice to spend billions a year?
It’s totally unnecessary to recruit people in a big way just for the sake of the extra profits.
"clear!"
The big boss made a decision, and Lu Qi naturally followed it.
By discussing whether to engage in search, Zhang Shuo took the opportunity to talk about his thoughts on the new business strategy of the Germination Group, "In the next five to ten years, the business strategy of the Germination Group should be dual-driven by investment and industry."
The so-called industry is, of course, not limited to physical manufacturing.
This means that in addition to the Internet, consumer electronics, semiconductors, new energy vehicles, commercial aerospace and other fields that have been involved so far, investment will be the main focus in fields such as modern agriculture and biopharmaceuticals.
This is the operating margin that Zhang Shuo has set for Sprout Group.
For unfamiliar areas, Sprout Group will strive to play the role of a "financial investor" in the future. If it can't be done personally, it will not be done personally.
As for the upper limit of the Germination Group, it will be driven by the new engine of investment. Through investment, it will indirectly participate in various fields such as modern agriculture and biopharmaceuticals.
Instead of ending up in person.
In this way, the funds of the Sprout Group can be directed to where they want to go, without dragging the entire group into a quagmire because of rashly entering an unfamiliar field.
Even if the investment fails, at most it will result in a small loss of capital.
It will not seriously damage the vitality of the Germination Group.
In the end, Zhang Shuo chose to recognize himself clearly and was not so arrogant as to think that he could lead a group with no business boundaries or even unlimited expansion.
This is unrealistic.
Even for chaebols like Sanxing and Sanjing, their business scope actually has boundaries.
Samsung's main business is consumer electronics.
"Does this mean that the group headquarters will play the role of an asset manager in the future?" Lu Kai made no secret of his excitement and enthusiasm.
As the person in charge of the group’s investment business yesterday, the new strategy is undoubtedly very beneficial to him.
It is equivalent to holding half of the group's power.
"That's not the case."
Zhang Shuo shook his head, "The group headquarters still has to assume the responsibilities that the headquarters should have, such as the incubation of new businesses, the research and development of future technologies, etc."
A pure asset manager cannot manage such a huge system as Sprout Group.
"But the proportion of investment will indeed increase."
"The board of directors will give the investment, financing and financial services department greater authority, but at the same time, it will also set higher standards for the performance evaluation of investment, financing and financial services."
Zhang Shuo does not want the investment and financing department to become a wasteful department.
That would run counter to the original intention.
"If we want to realize the dual-engine drive of investment and industry, the landmark event is that the group's profit return in the investment field must catch up with the profit in industry."
This is quite a challenge.
First of all, the existing cases of sprout investment are either industrial investments, such as investments in semiconductors, mobile phone industry chains, software industries, etc.
Tell the truth.
This type of investment mainly serves business departments, has low return on investment, and is difficult to cash out.
Other investments in companies such as Wujiang Technology, Linde New Energy, and Jingdong are long-term investments, and they will not be able to be cashed out for a long time in the future.
And a set of cash will have an investment return of at least hundreds of billions.
Just like the original Spacetime Tengda's investment in Jingdong, Molduan, etc., after distributing its shares in Jingdong to shareholders in the form of dividends, Tengda is planning to sell its shares in Moutuan.
There is also a lot of money to be made.
This chapter is not finished yet, please click on the next page to continue reading the exciting content! In addition, in the industrial field, Sprout Group has two major hematopoietic machines, Jade Bird Interactive Entertainment and Maili Group, plus Qinghe Technology, Sprout Financial Holdings, etc.
Profitability is increasing day by day.
If the investment business wants to reach such a level, there is indeed a long way to go.
Lu Kai immediately felt a lot of pressure.
Fortunately, this new strategy is just a preliminary idea of Zhang Shuo. If it is to be truly implemented, it must undergo refinement and research by the President's Office and other relevant departments.
Finally, it must be approved by the board of directors before it can finally take effect.
After all, the stakes are high.
Zhang Shuo is not sure that the strategy he proposed is definitely right.
………
After the meeting, Zhang Shuo's most important work of the day was completed. The remaining time was either used to process work emails or sign documents, or simply fish in an open and honest manner.
Who calls him the big boss?
After getting off work, Zhang Shuo did not go home, but went to a restaurant.
Xu Jia and Miaomiao have been waiting for a long time.
"Brother, Ahri Dianping and Nomi Dianping have already issued acquisition invitations to Miaomiao Bicycle. Is now a good time to make a move?" Cai Miaomiao asked with concern.
With the money-burning war for shared bicycles, Meow Meow Bicycle has naturally become the target of the two giants.
In particular, Meow Meow Bicycles also occupies the main market of Magic City.
Judging from the reactions of Ahri and Nomi, both companies want to acquire Meow Meow Bicycle, thereby surpassing their main rivals and winning the final victory in this money-burning battle.
The script is almost exactly what Zhang Shuo predicted half a year ago.
It is no wonder that at this critical moment, Xu Jia and Cai Miaomiao, the two decision-makers of Meow Meow Bicycle, eagerly invited Zhang Shuo to dinner again.
I am ready to ask Zhang Shuo for advice humbly.
"How long can the funds in Miao Miao Bicycle's account last?" Zhang Shuo asked without answering.
"There are less than 5 million left. If we want to continue to participate in the subsidy war, we can only start a new round of financing." Xu Jia explained.
Recently, many investment institutions have expressed their willingness to invest in Meow Meow Bicycle.
After all, the winner hasn't been decided yet.
"Then it depends on how you choose."
Zhang Shuo did not directly make a choice for the two of them, but gave his analysis, "Selling now has the benefits of selling now, but there are also financing risks."
"Refinance and support for another three to five months. If it works well, of course you can sell it at a higher price. The premise is that you must be prepared to bear the risks."
"What are the risks?" Xu Jia asked.
"The biggest risk is of course the business risk. If Ali Dianping and Nomi Dianping directly intervene in the Magic City market after being rejected by Miaomiao Bicycle this time, they will start a head-to-head fight with Miao Miao Bicycle."
"Facing the impact of the two giants, can Miaomiao Bicycle maintain its market share in Magic City? Or, in other words, can it maintain its current market share in the Chinese market?"
"Or should I say, I will be beaten and retreated..."
Although Xu Jia is capable, he does not understand the Internet; although Cai Miaomiao has started a business, he does not understand management.
Such a pairing.
It is really difficult for Zhang Shuo to believe that they will be a pair of chosen ones.
"Well……"
Xu Jia suddenly misfired.
She is ambitious, but she is also very self-aware.
"So, the safest choice is to decisively choose a giant and sell yourself to a giant while Miaomiao Bicycle is still valuable?" Compared to Xu Jia, Cai Miaomiao is obviously more eager to cash out.
She is not a very ambitious person, she is just a money-lover.
"I said, it's up to you to choose."
Zhang Shuo glanced at Xu Jia, but still did not directly mention them to make a decision.
"I also choose to sell now."
Xu Jia gritted her teeth and finally restrained her inner greed.
"Actually, there are two ways to choose to be acquired by a giant. One is of course to just take the money and exit. With the valuation of Meow Meow Bicycle, it will definitely be no problem to help you two achieve financial freedom."
But in fact, the biggest beneficiary is the prodigal sub-fund.
"If you are not willing to just take the money and exit, you can also choose equity s It is equivalent to exchanging the equity you hold in Miaomiao Bicycle with the equity in Ali-Dianping or Nomi Dianping."
"Given the development momentum of these two companies, there should be room for appreciation of this part of the equity in the future."
"The specific choice depends on you personally."
Zhang Shuo seemed to have read through Xu Jia's thoughts, but still insisted on playing the role of explanation.
It seems like he said nothing, and yet he seems to have said everything.
"Brother, according to what you say, isn't equity swap a better solution? It shouldn't just be about benefits, is there also other risks?" Cai Miaomiao asked.
"clever!"
Zhang Shuo really looked at Cai Miaomiao and explained with a smile: "For a start-up company, the founder wants to cash out. The best time is when the company is acquired, and the second is after the company goes public."
This is why.
Not only investors, but also founders will regard the listing of their company as the highlight of their career.
Because many companies are likely to reach their peak when they go public!
"If you choose equity swap, you have to bet that Ali-Dianping or Nomi Dianping can be successfully listed in the future, and their performance in the stock market must also meet expectations."
Otherwise, it may not be as good as cashing out now.
"Is it possible to cash out part of the equity when it is acquired and then exchange it for another part?" Xu Jia keenly caught the loophole in Zhang Shuo's words.
"Of course you can."
Zhang Shuo smiled and nodded, "However, with the shares of Meow Meow Bicycle you hold, it seems to be meaningless."
"Well……"
Xu Jia suddenly became depressed and completely forgot that she was actually just a small shareholder of Meow Meow Bicycle.
Before accepting the angel round investment from Fenglei Fund, the equity structure of Meow Meow Bicycle was——
The Prodigal Fund holds 45% of the shares, Jiawei Culture holds 25%, Cai Miaomiao personally holds 20%, and Xu Jia and Lin Weiwei each hold 5%.
After the angel round of financing, Fenglei Fund directly held 20% of the shares.
After the relevant equity was diluted, the Prodigal Fund held 36% of the shares and was still the largest shareholder; Jiawei Culture held 20% of the shares, and Cai Miaomiao personally held 16%.
Xu Jia and Lin Weiwei each hold 4% of the shares.
And based on the current valuation of Miaomiao Bicycle, if it really needs to conduct an equity swap with Ali-Dianping or Nomi Dianping, the swap ratio will be at least ten to one.
Xu Jia's 4% equity can only be exchanged for 0.4% of new equity at most.
It really doesn't make much sense.
On the contrary, Cai Miaomiao, as the largest individual shareholder of Miaomiao Bicycle, can use the method of cash-out and equity swap to obtain double insurance.
In such a comparison, Cai Miaomiao is the sure winner in life.