After all, Yahoo really took advantage of its previous plan.
Jack Ma’s team remains unchanged at 31% of its shares as in the previous plan.
In addition, Yahoo China will still inject into Ali's system, and Taobao's equity will be recovered and become a wholly-owned subsidiary of Ali.
The main change is reflected in the valuation. Both the pre-investment and post-investment valuations are more than US$200 million less than before.
But sometimes valuation is actually not that important, especially when compared with "lizi".
For the cash part, the previous plan was US$100 million, but now it has become US$430 million, and the gap is not very big.
At the beginning, when Jack Ma's team negotiated with Yahoo and SoftBank, the two parties collectively wanted to hold 69% of the shares, leaving only 31% of the equity for their team.
Moreover, the plan at that time, in addition to injecting the equity of Yahoo China and Taobao into Ali, only injected another US$250 million in cash into Ali.
But because of Lin Fan's appearance, Ali raised an additional US$180 million in cash on the condition that it sold the same amount of equity.
Jack Ma has no dissatisfaction with this.
This is also the reason why their team made concessions generously when negotiations reached a stalemate.
In fact, all this was due to Cai Congxin's calculations.
Deliberately proposing an exaggerated plan first, and then Ali's management making substantial concessions, gave Lam Capital and Yahoo a "feeling of profit", thereby promoting the final transaction.
In short, all parties have their own minds on the final plan and feel that they have made a profit.
It’s a happy ending for everyone!
After having no objections to all transaction details, the four parties signed an investment agreement in a hotel in San Francisco.
As soon as the agreement was signed, everyone breathed a sigh of relief, which meant that the matter could finally come to an end.
Jack Ma clasped his fists and saluted the three investors.
"Thank you all for your trust and support in Ahri and me, Jack Ma!
I will definitely not disappoint everyone’s expectations and will work hard to create greater value and returns for shareholders!”
Perhaps because the deal was reached and the terms were far better than expected, Jack Ma was in a good mood and spoke a lot.
"Jack, in my mind, you have always been the most promising entrepreneur. This has never changed.
No matter now or in the future, SoftBank will continue to support you!"
Masayoshi Son, who had planned to sell Ali's shares to eaby some time ago, did not lag behind in his talk.
Yang Zhiyuan was less fussy and said a few words of encouragement.
After chatting for a few words, Lin Fan was no longer interested in participating in business exchanges. He took the financing documents and looked at them carefully.
He was checking and thinking.
Lin Capital needs to first acquire % of the shares held by other shareholders of Ali, using US$100 million.
Then it injected US$100 million into Ahli, and Ahli issued some new shares to Lin Capital;
After % dilution and the additional issuance of new shares, Lam Capital holds a total of 23% of Ali’s equity.
The total amount of the two transactions was US$100 million, less than US$700 million!
Originally, he thought he would seek an equity pledge loan from an investment bank, but now it seems that the result is better than expected. The funds currently available to him are enough to complete these two transactions.
Lin Fan's meditation caught Sun Zhengyi's attention.
The old man smiled and said: "Mr. Lin, the old shares should be transferred sooner rather than later. In order to avoid any accidents, we two need to complete the transaction as soon as possible."
Son Zhengyi originally wanted to repair the relationship with Lin Fan, so he took the initiative to talk to the latter.
But the old man's show of kindness was misunderstood by Lin Fan as a sign of distrust in his family's strength.
You can't blame him for overthinking, mainly because Masayoshi Son's attitude towards him has always been very rude.
I didn't know that the other party was here to show goodwill, so I immediately thought wrong.
So he replied coldly: "Don't worry, I won't delay you. If you want to trade without doing due diligence, we will accompany you."
Masayoshi Son didn't know where this person was so popular. He smiled and said nonchalantly: "You can trade without making full adjustments. SoftBank is a shareholder of Ahri and knows Ahri's business situation very well."
Then he said in a nonchalant manner: "We can do it, can you?"
Only then did Lin Fan realize that SoftBank had been a shareholder of Ali a few years ago and had a much deeper understanding of the company than he did.
But he did not lose the slightest momentum, and continued to follow Masayoshi Son’s words: “Okay, then let’s start direct delivery of financing tomorrow!
For such a large-scale transaction, the money will be transferred without proper adjustment. If it spreads, it should become a good story."
Son Zhengyi fell silent.
Unlike Lam Capital, SoftBank also has shares owned by others, and Son cannot act arbitrarily.
For such a large transaction, the money is transferred directly without any due diligence.
If it spreads, it will not be a good story, but will be regarded as unprofessional or even insider trading.
Son Zhengyi does not dare to ruin his own brand and stop verbally quarreling with young people.
Ma Yun had been watching the two people fighting. His face was fine, but he was smiling in his heart.
If the shareholders were united, he would not be able to sleep well.
Lin Fan and Sun Zhengyi were a little uncomfortable with each other from the first meeting.
The two of them were fighting, and it was too late for him to be happy, so how could he try to persuade each other?
However, some superficial work still needs to be done.
When the two of them stopped talking and it was no longer a good show, Ma Yun jumped out to persuade them to make peace.
"Everyone is just kidding! Although I also wish I could get the money tomorrow, due diligence is still a necessary procedure."
After saying that, Ma Yun glanced at Lin Fan sideways and said earnestly: "Mr. Lin, Mr. Sun Zhengyi is a senior in the industry and has high attainments in the investment industry.
In fact, SoftBank and Lam Capital also have a lot of room for cooperation. You can communicate more together and share investment information and experience."
It is not an exaggeration to say that Jack Ma kills people and takes heart.
As soon as the deal was concluded, the gossip started.
He is a "senior in the industry" and has "very high investment attainments", so he just wanted Lin Fan to become his apprentice on the spot.
If another young man in his early twenties had heard this, combined with the minor verbal conflict just now, he would probably have stabbed him on the spot.
Even if there is no assassination, Son Zhengyi will be recorded in his little notebook.
But how could Lin Fan fall for such a trivial trick as Jack Ma and smile without saying a word.
Jack Ma's idea failed, and he knew that he was careless again and could not treat the other party as an ordinary young man in his early twenties.
In order to resolve the embarrassment of no one answering, Jack Ma began to change the topic: "After the due diligence is completed and the delivery begins, Ahri will reorganize its board of directors. Mr. Lin, Jerry, you two will become Ahri's new directors."
Seeing that both of them nodded, indicating that it was clear, Ma Yun looked at Son again and said: "SoftBank still maintains one seat on the board of directors."
Son Zhengyi nodded.
Ma Yun continued: "Then Joseph and I will also join the Ali board of directors, a total of five directors."
Ahri does not have many board seats, only five. Ahri's management holds two seats and each of the three shareholders has one seat.
This was reached with the signing of the agreement.
In fact, everyone knows that Jack Ma is just looking for something to talk to and have an awkward conversation.
Seeing that nothing happened, they chatted for a few more words, and then Son Zhengyi and Yang Zhiyuan left one after another.
Lin Fan was also about to leave, but was stopped by Jack Ma.
"Jack, what's the matter?"
Ma Yun looked mysterious. He looked around and saw no one. Then he said with confidence: "Mr. Lin, we are both Chinese. When the critical moment comes, you have to help your family!"
Ma Yun looked straight at Lin Fan with a very serious expression.
"That's for sure!"
Lin Fan replied without thinking.
"I know that Mr. Lin, you are a person who can handle big things right and wrong!"
In order to highlight his Chinese identity, Jack Ma stopped calling him "Mr. Lin" and directly called him "Mr. Lin".
Lin Fan can somewhat understand Ma Yun's true thoughts. The management only holds 31% of the shares, and the corresponding voting rights are also so many. It does not feel particularly safe.
It’s not that Jack Ma or Cai Congxin don’t understand AB shares, but that Masayoshi Son and Jerry Yang don’t agree with the implementation of AB shares at all.
In order to obtain financing, Jack Ma had no choice but to accept it.
If Lam Capital, Yahoo, and SoftBank work together to replace the management, Jack Ma's team will not be able to stop it.
Jack Ma sighed, "According to the agreement, the security period of my CEO tenure is only five years.
In these five years, no one can replace me.
But after five years, there is no such guarantee.
Mr. Lin, if I don't do a good job, replace me and let someone with more ability come to power. I will abdicate in favor of someone more capable without saying a word.
But if I do a good job, I hope Mr. Lin can stand by me when extreme situations like that arise.
Ali, after all, is a national enterprise, an Internet technology company managed by Chinese people and controlled by Chinese capital.
I really don’t hope that one day it will become an enterprise controlled by foreigners and managed by a big-nosed foreigner.”
Ma Yun spoke so sincerely that if Lin Fan didn't understand the depth of his routine, he would have believed it to be true.
The reason why he played the patriotic card was because Ma Yun discovered that Lin Fan had not yet naturalized in the United States. He also expressed pride in being Chinese in his words. In his speech, he also criticized the young man who spoke mixed Chinese and English...
Ma Yun found that there was not much he could do to please Lin Fan. He wanted money and a wife, and he didn't lack anything.
In other words, he found that he didn’t have much value to contribute to the other party!
In addition to planning to slowly develop a relationship with Lin Fan in the future and provide some emotional value, Ma Yun also decided to test Lin Fan with the patriotic card.
Apart from this card, he has no better card to play for the time being.
In order to calm Ma Yun's heart, Lin Fan said seriously: "Don't worry, if you don't harm the interests of shareholders and manage Ahri well, I will definitely support you to the end!"
"Okay, I promise you a lot of money, and I, Jack Ma, will definitely repay you generously in the future!"
Jack Ma used basic hand gestures again, cupping his fists and saluting Lin Fan.
Lin Fan nodded, said goodbye and left.
Jack Ma returned to China, and he was accompanied by three other Liqiu Fund employees including Ya Bei.
The three of them are going to Ali in Lin'an to start a series of tedious due diligence work.
Lin Fan did not follow him back to China. He asked Zhang Chenguang to drive to Android Company.
Android Company has completed all due diligence, signed a formal acquisition agreement with Lam Capital, and completed the equity change.
In addition to paying US$50 million for equity acquisition, Lam Capital also injected the first development capital into Android, which was also US$50 million.
The reason why more funds have not been injected is because the current scale of Android companies is limited and requires a step-by-step development process.
Fifty million US dollars is actually quite sufficient for today’s Android.
With this money, Android Company also moved out of its old, small and remote office and replaced it with a new office space of thousands of square meters.
The new office is located in the heart of Silicon Valley, less than three kilometers away from Facebook and Lam Capital. The transportation is very convenient and the environment is good, which is also conducive to attracting more talents to join the company.
Lin Fan stepped out of the elevator and immediately saw the green Android robot logo posted on the wall at the front desk.
Andy Rubin had been waiting here early. When he saw Lin Fan arriving, he hurriedly greeted him with a smile on his face.
"Mr. Lin, this new office is great, the employees love everything here!"
What Andy Rubin said is true. In the two years since they founded Android, their founding team has bet almost all their wealth.
After unsuccessfully seeking investment, Android's operating funds quickly bottomed out.
Their team would like to break every penny in half and use it to save whatever expenses they can.
They wouldn't even dare to think about moving to such a nice office.
After Lin Fan acquired Android, he injected 50 million U.S. dollars with a wave of his hand, paid all the arrears of employee wages, and rented Android a brand new, spacious, and bright office.
It also adjusted employee salary levels to help Android expand its R&D team.
All of this shows that this is a very generous and ambitious boss.
Being able to meet such a good boss, Andy Rubin has nothing to be dissatisfied about.
In addition, Lin Fan also promised to give their team 10% options.
It also promised that if the capital injection is within US$500 million, the 10% option will not be diluted.
Converted based on the amount of capital injected, this 10% option package is worth US$50 million.
But capital injection is not equal to the company's valuation and market value. As long as Android develops well, the future value of this 10% option will be far more than 50 million US dollars.
Therefore, when he and his team work together, he is very motivated and feels that his life is going forward.
Lin Fan didn't know Andy Rubin's rich inner drama. Everything he had done, including improving the working environment, increasing salary, issuing stock options, and expanding the employee team...
They are all aiming for the same goal: to develop and launch a mature Android operating system as soon as possible.
The little money you spend now is for the big money in the future.
"Let's go. This is my first time coming to Android after moving to the new office. Please give me a good tour."
Andy Rubin nodded repeatedly and took Lin Fan to visit Android. While touring, he also introduced it.
Zhang Chenguang was wearing a suit and followed behind expressionlessly.
"At first, including the founding team, we had only six people in total."
Andy Rubin pointed to the less than half-filled workstations in the open office area and said with a smile: "After moving here, we recruited more than 20 people, and the staff size suddenly expanded to 30 people.
Next, the recruitment work will not stop, at least thirty more people will be recruited.
Fortunately you sent a chief human resources officer, otherwise we wouldn't know how to recruit and manage so many people.
In fact, I don't want to be distracted by these management tasks and want to devote more time to research and development.
Navigating through the vastness of computer code is what excites me the most.”
Lin Fanxian glanced at Andy Rubin a few times and felt relieved when he saw that the other person's face was sincere and did not seem to be fake.
After acquiring Android, Lam Capital recruited and dispatched a chief human resources officer and a chief financial officer.
In the words of duck neck, both the money bag and the official hat must be grasped.
Originally, Lin Fan was worried that Andy Rubin and the team would be resistant to this.
But it seemed that the other party didn't think there was any problem and obeyed the arrangement very much.
The two executives who were dispatched also reported that they got along well with the technical team led by Andy Rubin.
"Where's Ricky? Are you planning to retire?"
The "Ricky" in Lin Fan's mouth is Ricky Milner, one of the four founders of Android and the original chief financial officer of Android.
Before Lam Capital decided to dispatch its chief financial officer, when the acquisition agreement was signed, Rich stated that he wanted to cash out and exit.
Because Ricky was not a technical person and was not particularly lacking, Lin Fan allowed him to withdraw.
Andy Rubin didn't quite understand why the boss suddenly asked about his old buddy. Did he regret it? Want to keep Ricky?
With doubts in his mind, Andy Rubin replied: "No, he is looking for a job recently. Maybe he wants to return to his old profession and do venture capital."
Lin Fan remembered that after Android was acquired by Google in his previous life, Ricky joined Google Ventures and led many of Google's successful external investment cases. He was a talented person.
It's actually a bit humiliating to only let the other party do the Android CFO.
"Ask him if he would like to work at Lam Capital? I can give him a fund to control."
Andy Rubin's eyes lit up. There was someone in the government who wanted to be an official. If he hadn't known that Ricky was very independent, he would have wanted to help this old man agree.
"Okay, let me ask him, is it a VC fund or a PE fund?"
Lin Fan thought for a moment and replied: "He has been a VC before, so he should continue to be in charge of the VC fund!"
"Okay, I understand, I will definitely tell him!"
Andy Rubin said with a wide smile.
Although Lam Capital is not a well-known investment institution with a huge asset management scale, the fund is even still in its infancy.
But I can’t stand the founder’s strength!
In addition, Andy Rubin also feels that precisely because the fund is in its early stage, there are more opportunities.
This is the same as joining an early Internet startup.
After taking Lin Fan around the company for a few more times and visiting every corner, Andy Rubin led his boss into the conference room to prepare a report on the current work status.
Lin Fan asked Andy Rubin to call over the other two founders of Android, Chris White and Nick Sears.
The four people discussed Android's next development policy together.
