After receiving Zhang Yida's authorization, Lu Qi started the integration operation and first met with the shareholders of Pinduoduo and Doudu.
There are not many shareholders in Pinduoduo. Apart from Zhang Yida, there are only a few shareholders such as angel investor Sun Yutong, Blackshirt Capital, Zhenke Fund, Penguin and others.
In addition to Zhang Yida, the only shareholders of DouShi are Ruixiang Industrial Fund, Huayi Capital, Blackshirt Capital, and Zhenke Fund.
The two investment institutions represented by Shen Beipeng and Xu Xiaoming had shares in both companies, so their palms and backs were full of flesh, and they basically didn't have much opinion.
Ren Yu is different. The Penguin Industry Win-Win Fund he represents holds more than 20% of the shares in Pinduoduo.
Raising the valuation of Duoduo and suppressing the valuation of Dioshu has become what must be done to protect Penguin's rights and interests.
Ren Yu said with a smile: "Compared with 7 months ago, Pinduoduo's various data and indicators have improved dramatically. It is impossible to still calculate based on the valuation of US$4.2 billion in February, right?"
Lu Qi nodded, "We have considered this. At that time, Pinduoduo's pre-money valuation was US$3.3 billion, and the valuation was based on a 10-month GMV of 13 billion and a gambling agreement."
Turning to look at Ren Yu, "The gambling agreement requires Pinduoduo to complete the annual GMV target of 36 billion within the next year, that is, before February 2017."
"Yes, that's what the agreement is."
Ren Yu said: “In fact, without signing such an agreement, we would not be able to value an e-commerce company that was only one year old at US$3.3 billion.
At that time, when I signed this agreement, I was under a lot of pressure. Some people, including the outside world, laughed at us Penguins for being a bastard."
Speaking of this, Ren Yu paused and smiled, "But now these people have shut up, and Pinduoduo responded to them with practical actions.
From February to now, in 7 months, monthly GMV has doubled, from 3 billion to 6 billion, and the cumulative GMV in 7 months has reached 30.5 billion.
I think we can almost give in to the gambling agreement."
"Mr. Ren, what do you mean...to submit the shares for delivery and provide incentives to the management team?" Lu Qi asked.
Ren Yu said with a smile: "I don't think we need to wait until 5 months for the 54 billion goal, it may be achieved in 3 months.
Equity incentives can be delivered in advance, but Pinduoduo’s valuation must be recalculated.”
Lu Qi asked calmly: "How much does Mr. Ren think Pinduoduo should be valued at now?"
“Pinduoduo’s current monthly GMV has reached 6 billion yuan. Based on its growth rate, we infer that the GMV should reach more than 100 billion yuan in the next year.
The valuation is set at 60 billion yuan, equivalent to 9.1 billion U.S. dollars."
Lan Lan coughed and said: "DouShi currently has 100 million daily active users in China, and 50 million daily active users in North America and Europe combined.
Based on a user valuation of US$100, the valuation should reach US$15 billion.”
Ruixiang Industrial Investment Fund is a shareholder of DouShi. When Lan Lan saw that Ren Yu was driving up Pinduoduo's valuation, she naturally wanted to help DouShi.
This has nothing to do with anything else, it’s just a different stance!
Shen Beipeng and Xu Xiaoming didn't say anything. Both of them held only 1.43% of the shares in DouShi, while their shares in Pinduoduo were 4.71% and 3.14% respectively.
From the perspective of maximizing profits, we should still prefer Pinduoduo, which holds more shares.
Before the two of them could speak, Ren Yu said again: "The DouShi bubble is too big. It only has users but no revenue or commercial monetization capabilities.
So what about 150 million daily active users? The number of users alone cannot support a valuation of US$15 billion.
15 billion U.S. dollars, converted into RMB 100 billion. To reach this level, the company's annual revenue must be at least tens of billions, with a net profit of two to three billion."
Lei Dongming spoke up and said: "After you have a deeper understanding of DouShi and Musical.ly, you will find that this is a very addictive software.
There are 150 million daily active users around the world, and the average user usage time is still very high. This is a gold mine that has not yet been mined.
Once commercialization starts, advertising, live streaming, e-commerce and other businesses will contribute tens of billions of revenue, and there will be no pressure at all."
Ren Yu smiled and shook his head, "Penguin also had hundreds of millions of users back then, but there was no revenue and we almost couldn't survive.
No matter how hyped up DouShi says, it has not proven itself. US$15 billion is not a small number. In fact, I think US$7 billion is overestimated.
Kuaishou also raised a round of financing half a year ago, and what is its valuation? US$2 billion. Moreover, Kuaishou was established several years earlier than Douyin, and it also has a live broadcast business that contributes revenue.”
“Dou Vision will start commercialization in the near future and will launch a “short video + live broadcast” software. After merging with Pinduoduo, it will also engage in live broadcast e-commerce business.
The reason why commercialization was not launched in the past was because the foundation had not been completely laid.
But now, the number of daily active users in China has exceeded 100 million, and the fruit has slowly matured and is ready to be picked."
After Lu Qi talked about DouShi, he started talking about Pinduoduo again. He said: "Pinduoduo is unparalleled in the field of social e-commerce and has indeed achieved very good results.
But sooner or later you will hit the ceiling!
Nowadays, live broadcast e-commerce and Internet celebrity e-commerce have become popular. I think this is a new trend.
After the integration of Pinduoduo and DouShi, their businesses will complement each other, with DouShi creating a traffic matrix and Pinduoduo providing an e-commerce matrix.
While DouShi improves its monetization capabilities, it also provides Pinduoduo with a new incremental market. The ultimate beneficiary is Zhonghe Group, which merged the two companies into one, as well as all shareholders.
Therefore, I think we should not worry about this little benefit at hand.
Everyone, take a long-term view, work hard together, and you will definitely achieve the effect of one plus one being greater than two."
"Mr. Lu, you are right to say that, but I still think DouShi's valuation is too high."
Lan Lanxun glanced at Ren Yu and said, "I still think Pinduoduo's valuation is too high?"
Lu Qi smiled bitterly. It is really difficult to integrate a company. This is still the perception and contradiction at the shareholder level. At the business level, who knows how many difficulties are waiting for him?
But now that I have assumed this position, I must shoulder the responsibility. No matter how many difficulties there are, I must overcome them one by one.
Lu Qi began to comfort several parties again.
…
"Xiaohui, it seems that Gaomeng APP has stopped the merchant account opening promotion of Mobao Pay. What are you doing recently?"
In the female dormitory of Jizhou University, Yuanyuan, her roommate in the same dormitory, was asking Chen Xiaohui.
Maybe it can no longer be called round. This girl's face is no longer round, and has become the kind of common Internet celebrity face with a pointed chin.
Chen Xiaohui glanced at her roommate Yuanyuan, thinking that her roommate was usually quite a nice person, so Chen Xiaohui said, "I'm making short videos on TikTok.
Have you heard of DouShi? It is a short video platform that is much more interesting than Weibo or something like that.
As long as you keep posting videos, you will surely slowly become popular and your fans will gradually increase."
"What's the use of having more fans? DouYu is just empty air. It neither rewards nor pays salary on the platform. It's just a waste of time."
A strange voice came, it was Tiantian, another roommate of Chen Xiaohui.
"hehe!"
Chen Xiaohui was originally unhappy with this sweetness, and sarcastically said: "You are so ignorant! Do you know what kind of activity was launched by the DouShi platform?
Ten billion creative subsidies! As long as the number of likes or plays of your short video reaches a certain standard, cash rewards will be issued.”
"How much money can I have?"
Tiantian rolled her eyes, "I live broadcast once on the Cucumber Live Broadcasting Platform, and I can receive tens of thousands of yuan in gifts in one night."
Chen Xiaohui just didn't bother to talk to this stupid woman and just did her own thing.
"Xiaohui, can you really make money by shooting short videos on Doushi? I have shot some short videos on Toutiao Video before, and their so-called "one billion creative subsidy" is just a cover.
No money is given, but some traffic promotion resources worth 10,000 yuan or 8,000 yuan."
Yuanyuan said flatteringly: "Can you teach me how to shoot a short video on TikTok?"
Chen Xiaohui smiled and said: "This is simple, you can either appear on the scene yourself, sing or dance.
Or you can compile some movie clips and do movie commentary. Or you can make rankings, such as song rankings, Hong Kong and Taiwan female star beauty rankings..."
Chen Xiaohui shared her experience very patiently, and Yuanyuan listened attentively. It was obvious that she really wanted to make a good short video, or make money.
After a while, Chen Xiaohui went out to class.
"Yuanyuan, why are you asking her for advice? Didn't I tell you? You signed a contract with Cucumber Live Broadcast, and you can easily earn ten thousand or twenty thousand a night."
Tiantian said while applying nail polish.
Yuanyuan shook her head, "No, in front of so many people... I can't do it."
"Haha, have you ever thought about it? You now have to pay back several thousand yuan of medical beauty installment loans every month. How do you pay it back?" Tiantian said sarcastically.
Yuanyuan pinched the corner of her clothes and whispered: "I will go out to work part-time and pay back slowly!"
"How much can you earn part-time by distributing flyers? Eighty or one hundred a day? Besides, do you have that much time?
Let me tell you, if you can't repay your loan, those people will do anything, not bomb your mobile phone address book and ruin your reputation;
I just drag you to the bar to accompany you and become a KTV princess..."
The more Yuanyuan listened, the more frightened she became. She was about to burst into tears. She begged, "Tiantian, can you help me?"
"How can I help? You can only save yourself from this. If you go live for half a month, you can basically pay off the loan. The patience will pass."
Yuanyuan bit her lower lip, "But... what if someone takes a screenshot and uploads it to the Internet?"
"Wear a mask! As long as you can't see your face, who can recognize your body?"
Yuanyuan shook her head vigorously, "No, if others find out, my life will be over."
"Hey, you stupid girl! What era has it been, why are you still so old-fashioned?
Look at Li Lizhen, Shu Qi, and Tang Wei, which one is not becoming more and more popular?
In this world, people laugh at the poor but don’t laugh at the prostitutes!”
Yuanyuan completely collapsed. She wiped her tears and said: "That hospital and the loan company are all in the same group. I originally just wanted to have a double eyelid surgery, but they insisted on letting me have my nose padded and hyaluronic acid injected...
When I said I had no money, they asked me to take out a loan. I have calculated that the annual interest rate on that loan is more than 70%."
There was a hint of unbearability in Tiantian's eyes, Yuanyuan was where she is today, and she had a share of the credit.
She had no choice but to keep her face from deforming, so she had to take hyaluronic acid injections for a long time.
Her godfather also doesn't want her anymore, saying that she is no longer natural and is getting uglier.
She had no choice but to earn a little commission from her good sisters to maintain a decent life.
"Hey, don't cry. Come with me to my rental house tonight! You see how I play, and you will gradually get used to it."