Meituan’s last financing was US$250 million led by General Atlantic Group.
Wang Xing originally thought he could last for 2 years, but ended up burning most of it in just one year. The businesses of Meituan, Yuetuan, and Dianping were entangled to death. If one company subsidizes, the others must follow suit.
If you don't make up for it, the price will no longer be discounted, the monthly activity will drop, and over time, users may delete your APP and completely embrace other companies.
From the beginning of the year to the end of the year, the fight started to come and go, but gradually Meituan and Dianping couldn’t keep up. Yuetuan was like crazy, throwing money into it, even during the Ghost Festival.
Teaming up with Didi, they launched crazy activities such as "charter a car to go to the temple to pray for blessings and offer a package at half price".
How else can you play?
So looking at the prime time periods of Christmas, New Year's Day and Spring Festival, Meituan has no money to subsidize. Can Wang Xing not be anxious? But there is no point in being anxious, the situation is different.
Historically, only Meituan and Dianping competed for hegemony, with a 50% chance of winning. Sequoia also brokered a merger in the middle, and investors were willing to invest in another round.
Now there is Yuetuan, which ranks first in market share, has the largest amount of funds, and has the highest winning rate.
The old investors wanted him to repurchase the shares, but the new investors were not confident either, so they reached a deadlock. Wang Xing had been looking for money for the past two months, running into obstacles everywhere, and his mouth was full of bubbles.
What's worse is that Shen Nanpeng, whom he has high hopes for, also brings bad news.
"I've found out that Yuetuan has reached an agreement with Hillhouse and Tiger Management, and has received the fourth round of financing, which is about US$700 million!"
"I've contacted you around, but no one is optimistic about you now and I'm not willing to invest money."
Shen Nanpeng sighed and pretended, but in fact he had already made a deal with Lei Jun PY.
"$700 million?"
Wang Xing shook his head and smiled bitterly. Yuetuan already had the upper hand, and after taking the money, he couldn't do it anymore. He remembered Shen Nanpeng's previous suggestion to merge with Dianping, and asked if this was still possible.
Shen Nanpeng initially wanted to merge Meituan and Dianping, but Lei Jun stepped in and wanted Meituan. Shen Nanpeng decisively joined Lei Jun, but he made a random analysis:
"If you merge with Dianping, your market share will indeed exceed that of Yuetuan, but then there will be a war between 99 and Tencent. Tencent will not have the upper hand, and you have offended Alibaba. Alibaba will not help you. It is hard to say who will win and who will lose.
Think of a way again and don’t consider this until the last step.”
Shen Nanpeng hesitated for a while, left Wang Xing's office, and immediately called Lei Jun: "Mr. Lei, Meituan is at the end of its rope, I think it's OK!"
"okay, I get it!"
…………
Lei Jun deliberately delayed it for a few more days and passed the New Year unknowingly.
During this golden period, Yuetuan defeated Meituan, and Yao Yuan was also building momentum online, trumpeting that Meituan's capital chain was broken and Wang Xing was about to run away.
All this made Wang Xing even more vulnerable.
Sometimes in a business war, you just want to hit someone, manipulate the other person's mentality, force him into a difficult situation, and then take the next step.
At this moment, Lei Jun finally came out and made an appointment with Wang Xing. The two made an appointment in a luxury suite of a hotel. Once the door was closed, there were no other participants, and they met face to face.
A 46-year-old man who had become famous in the 1990s and returned to the world of martial arts never grows old.
A 36-year-old man, after many ups and downs in entrepreneurship, finally found a career, but he was faced with a major decision.
Wang Xing is an ambitious person and does not want to sell Meituan and run away. He knows that Lei Jun wants to talk about a merger, and he is not opposed to it. He will listen to the conditions.
And Lei Jun sat down, made a pot of tea like Yao Yuan, put his watch on the table, and said with a smile: "It's 6 o'clock now, let's set a limit. If we don't reach an agreement before 12 o'clock, this negotiation will be invalid."
?”
"That's good!"
"Then let's set the midnight snack first and tell them to be there at ten o'clock so as not to waste time."
"..."
Wang Xing raised his eyebrows. This senior was quite interesting. So everyone ordered a midnight snack and started negotiating.
What to talk about specifically?
One is the valuation of both parties and the share exchange ratio; the other is the management structure after the merger.
Yuetuan's valuation is high, and theoretically the share exchange ratio must be higher, but Wang Xing will definitely not do it and insist on a 5:5 ratio. Lei Jun is not in a hurry and has been talking to him in a unique slow style.
Some people may ask, since Meituan has no money, won’t it be over when it goes bankrupt?
That's not the case. If Wang Xing really reaches the end of his rope, he will run to merge with Dianping. That's why Lei Jun wants to intercept Hu.
On this ordinary winter night, in this hotel suite, a secret conversation was taking place that would affect the future of the Internet.
Unconsciously, a few hours passed and I drank pot after pot of tea, feeling restless and restless.
Fortunately, the supper is here.
One of the two called for noodles and the other called for noodles. After finishing the meal, Lei Jun felt a little better. Lei Jun wiped his sweat. The room was dry and hot, and the cuffs of his shirt were rolled up.
"An hour and a half left!"
"It's rare for us to sit together. I don't want to argue over and over again. Okay, I'll give in and exchange shares at 5:5 as you said!"
"I'm ashamed. Mr. Lei is so righteous. I also think about the company. I hope you can understand."
Wang Xing also wiped his sweat, feeling happy in his heart.
The 5:5 share exchange means that the relationship between the two parties is equal, and there is no one who is higher and who is lower. Then it is easy to talk. Using the remaining hour and a half, the two quickly reached a preliminary agreement.
1. Meituan and Yuetuan merged of equals. The two companies exchanged shares at a ratio of 5:5. It was up to each investor to convince them. After the merger, they will occupy equal seats on the board of directors of the new company.
2. Lei Jun and Wang Xing have equal say and serve as co-CEO and co-chairman. They are independently responsible for relevant business, and major decisions are completed at the board of directors level.
3. Both parties will keep their original businesses unchanged and operate independently. The business team will keep its current structure and responsibilities unchanged, complete the merger at the capital level in advance, and the business will be gradually integrated.
simply say:
One brand, two teams, seemingly independent of each other, but there is no need to fight to the death, because the shares of both parties are integrated and they can make money together.
"call……"
WANG
"Finally, I didn't let down today's meeting!"
Lei Jun was still smiling, and Yun Danfeng said lightly: "This is a good start, we will be a family from now on."
"Yes, we are a family, and I still have to learn more from you."
The two of them shook hands eagerly with different intentions, and after seven hours of fierce fighting, they walked out of the hotel in the early morning.
…
Lei Jun called Yao Yuan in the car.
Yao Yuan was not asleep yet but looked very tired and seemed to have experienced a fierce battle.
"The conversation is over!"
"What result?"
"As we expected, it will be a 5:5 share swap, with equal say, and major decisions will be voted on by the board of directors."
"Actually, Wang Xing is very capable. Yuetuan wants to expand its business, and you need help." Yao Yuandao.
"Some people are suitable to be the boss, and some people are suitable to be the second child. Wang Xing is not someone who has been subordinate to others for a long time. Do you think that when he stabilizes, he won't mess with me? Of course I have to strike first!"
Lei Jun stopped smiling and lost his usual friendly demeanor, finally showing a hint of blood.