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1996, the last day of June.
silicon valley
After several days of intensive negotiations, Yahoo Search’s Series C financing was successfully completed. More than 40 institutions and funds were shortlisted, with a valuation of US$8.8 billion. A total of 10% of the equity was released and US$880 million was raised.
So far, Yahoo Search has successfully completed its C round of financing, setting a new record with a valuation of US$8.8 billion, which shows that the market is fully optimistic about its optimism. At a time when the craze for Internet high-tech stocks is getting stronger and stronger, Yahoo Search is a well-deserved behemoth.
The next step is to start the listing process and strive to land on the Nasdaq market in early 1997.
After the equity reset, the changes in the original major shareholders are as follows;
Founder and angel investor Wang Yaocheng’s shareholding decreased from 62.9% to 57.18%.
The founder, Dr. Ferro, reduced his shareholding from 3.4% to 3.09%.
Founder Yang Zhiyuan’s shareholding decreased from 3.4% to 3.09%.
Angel round investor Qi Yafei and the senior management team reduced their shareholding from 1.36% to 1.23%.
SoftBank's shareholding was reduced from 3.5% to 3.18%.
The equity ratio of other large institutions has also been reduced accordingly, and quotas have been liberalized to allow more institutions to participate. The total number of institutions participating in the C round of financing is as many as 47, and the average equity obtained has been diluted again.
Goldman Sachs' stake was reduced from 2.98% to 2.7%.
Microsoft's shareholding was reduced from 2.98% to 2.7%.
HSBC's shareholding was reduced from 2.98% to 2.7%.
Citibank's stake was reduced from 1.7% to 1.54%.
Blackstone Fund's holdings decreased from 1.7% to 1.54%.
Sequoia Capital’s stake was reduced from 1.7% to 1.54%.
The shareholding ratio of newly added institutions is smaller;
Bain Capital's stake decreased from 0.32% to 0.29%.
Los Angeles Public Employees' Pension Fund's stake decreased from 0.32% to 0.29%.
The Connecticut State Police Pension Fund's stake decreased from 0.32% to 0.29%.
…
After the completion of three rounds of financing, excluding the three company founders Wang Yaocheng, Yang Zhiyuan and Dr. Ferro, there are a total of 79 institutional investors and more than 2,000 individual shareholders including the management of Yahoo Search Company.
According to the two-tier equity structure of Yahoo Search A and B, all the above-mentioned institutions and individuals own A shares of preferred shares and can vote on major company matters, appointment and removal of the chairman, and other matters.
B-shares listed on the Nasdaq market only have the same dividend rights but no voting rights, so their value and gold content are virtually inferior.
This two-tier equity structure of a and b is conducive to the controlling shareholder Wang Yaocheng's absolute control of the company. Even if the controlling stake drops to 15%, he can still firmly control the entire company.
It is completely useless for all other shareholders to unite against him.
This time, Wang Yaocheng changed his mind and was ready to run Yahoo Search well and treat it as a flagship company in Silicon Valley. He would run the company carefully and not give up easily.
Celebration reception at Red Hat headquarters
Facing hundreds of well-known investment banks and managers of large and medium-sized pension funds, Wang Yaocheng raised his wine glass high;
"Today, Yahoo Search has successfully raised Series C financing. I announce that we will join hands with Goldman Sachs, Citigroup, and HSBC to start the listing process. Let us raise a glass together to celebrate the victory, cheers!"
Countless flashlights lit up, freezing this glorious moment. Through overwhelming media reports, Wang Yaocheng's legendary experience as the "King of Silicon Valley" began, and it became deeply rooted in the hearts of the people and was accepted by people around the world.
Silicon Valley entrepreneurs prefer to call themselves "Silicon Valley Godfathers", which is a distinguished title with reverence.
cocktail party
Wang Yaocheng delivered an impassioned speech, explaining the philosophy of operating Yahoo search;
Yahoo Search is committed to making it easier for people to get the information they want online. Let Yahoo always help people get the most and most wanted information in the most convenient way. This is also the long-term dream of Yahoo's founders for search and content.
This article will always be engraved on the wall of the lobby of Red Hat's headquarters.
Let every visiting scholar and admirer see this motto at the first time, and every employee should keep this motto in mind. This is the starting point and purpose of all work.
All of Yahoo Search's efforts are to achieve its goals faster, better, and better.
Three conditions are needed to achieve this goal:
1. Comprehensive: very rich in information;
2. Global: Useful information from all over the world can be found;
3. Brand: let netizens all over the world know yahoo!.
How to be comprehensive, global, and have brand influence?
Yahoo Search has established in-depth cooperation with the world's mainstream media and quoted the latest reports from the above media to bring comprehensive and rich information to the online world, covering news, finance, military, sports, technology and entertainment, BBS, fashion, education, tourism, international and domestic news
Provides rich and colorful page information on major events, e-mails, etc.
Doing so can greatly reduce the high manpower costs of news gathering and editing, and provide a massive amount of information for netizens to choose from.
Facts have proven that Yahoo's search page occupies 92.4% of the global market. It is a single company that dominates news gathering and editing content and efficient search services, as well as a unique advertising click charging model. It is an efficient search engine with independent property rights and has been unanimously recognized by the market.
Yahoo search is committed to building a brand image, I always think;
Enterprises need to occupy a certain level on the ladder of consumers' minds so that consumers can think of you first when making decisions.
So far, Yahoo search is doing great.
Summarizing the experience of entrepreneurship in Silicon Valley, I think the path to success for a company varies, but can generally be divided into two types:
First, the right time and place, and fate are important prerequisites for success. The current high-tech wave of the Internet is a historical opportunity, and we are standing at the cusp of the opportunity.
As long as the wind is strong enough, even a pig can be blown away.
Second, the ability of the founder team plays a decisive factor in success.
Another common rule is that when an industry starts from scratch and competition is limited in its initial outburst, success is often more about opportunity than ability, and chance is greater than necessity.
As the Internet technology wave gradually deepens and competition continues to intensify, the industry will grow from scratch, from existing to good, from good to differentiated segmentation. To continue to succeed or defend success, the founder's team capabilities will gradually compete with
Directly proportional to success.
What is inevitable will dominate the fate of high-tech network companies. This is the inevitable outcome of historical development.
The success of Yahoo Search today is inseparable from the strong innovation capabilities of the founding team led by President Qi Feifei. Of course, it is also inseparable from my correct guidance.
Therefore, I can prophesy here;
All institutions that participate in Yahoo search investment will receive generous returns. This will be a generous return without risk. Thanks to many venture capital funds and Goldman Sachs, Citibank, HSBC, Blackstone Fund, Sequoia Fund, and SoftBank.
, Microsoft Corporation has always been supportive, thank you!
The most beautiful battle is one in which the gains and losses are calculated most clearly beforehand, and the same is true for investment.
Wang Yaocheng's wonderful speech won warm applause from everyone present. His words have become the motto of Silicon Valley investors, profoundly influencing the philosophy of venture capital funds, and he is known as the person who has gone the furthest.
Nodding to everyone frequently, Wang Yaocheng became the focus of attention with high spirits. In fact, his words were more nonsense than truth, and there were not many that were truly remarkable.
Regarding the general trend of the Internet, Wang Yaocheng concealed the four key words;
Community, content, search, and personalization are the four strategic cores of the future Internet and the future development trend of the Internet.
It can be clearly seen that all successful Internet companies have been developed closely around four strategic cores. There is no need to elaborate on specific companies one by one, as they remain the same.
Wang Yaocheng didn't dare to say this, let alone wanted to say it.
As for whether other companies have gone astray, that is someone else's business and has nothing to do with him.
Qi Yafei walked over with a glass of wine in high spirits, filled with the joy of success. Being praised by Wang Yaocheng in front of so many Wall Street big shots, it was really honorable and his reputation was soaring.
"Brother Yaocheng, I guess you still had a conscience and didn't forget me during your speech. So I said a toast to you."
"Bullshit! What do you mean by a passing sentence? Didn't you count it yourself?"
"Okay, okay, I owe you."
Wang Yaocheng curled his lips and said, "Don't you owe me enough? Eat my food, drink my food, and live in my house. Don't mention moving out now. You plan to live there until the Year of the Monkey. I'm getting married at the end of the year.
It’s not very convenient for you to live in a Mediterranean manor.”
"Aren't you afraid of living in a large manor? I think it's quite convenient."
Qi Yafei now followed suit and became thick-skinned, patting him on the shoulder; "Anyway, I have no money, so I invested it all in Athlon Microprocessor Company. Now I am tired of carrying bank interest, not to mention the house.
At the very least, I will stay with you for a year and a half, so you don’t have to bother trying to drive me away."
Wang Yaocheng; "Why do I feel like I owed you something in my previous life."
"Hahaha... We are good brothers for life. Let your sister-in-law cook a special meal of braised noodles when you go back. You can contribute a few more dishes, and we two brothers will sit together and have a good two drinks. Everything is in the wine."
"Okay!"
Qi Yafei suddenly remembered something; "Oh... don't forget to bring two bottles of good wine."
Wang Yaocheng;
Qi Yafei invested in two projects, one was Yahoo Search, holding a 0.6% stake, and the other was Athlon Microprocessor Company, ultimately holding an 8.5% stake. He invested all his money plus a US$40 million bank loan.
After one year, the interest alone is more than one million US dollars.
Before the four-month lock-in period for Yahoo's search stock executives ended, Qi Yafei really had no extra money to spend. In line with the principle of eating big money, he lived in a Mediterranean manor for more than a year and lived a comfortable life.
You don’t have to spend money to eat, wear, use or travel. You can even take a helicopter home every day. You can eat all the delicacies you want from all over the world, and they are prepared and brought to the table. You can eat them as soon as your butt falls off.
Leave.
Well, it’s really a bit of fun to catch up on my leisure time while riding horses, fishing, listening to music and soaking up the sun.