"Then according to your opinion, we should give up live broadcast monetization and choose to use advertising to monetize?"
Lu Qi shook his head, "We have to catch both ends! Especially because of the existence of Pinduoduo, I think we must occupy a place in the field of live streaming e-commerce."
"But you just said, Dou Vision is not suitable for live broadcast monetization."
Lu Qi said seriously: "Yes, DouShi is indeed not suitable for live broadcast monetization. This is determined by the product framework.
In addition, Pinduoduo’s users are actually more compatible with Kuaishou, and most of them are users in third- and fourth-tier cities and rural areas.
The users of DouShi are mainly in first- and second-tier cities and people with high education and high income, and have strong purchasing power.
If DouShi is used as a live broadcast e-commerce to help Pinduoduo attract traffic, the effect may not be satisfactory.
Users may feel that the quality of the products on Pinduoduo is poor, which will affect the reputation of Douyi.
Therefore, we need to create another short video product to target people outside the Fifth Ring Road."
Zhang Yida understood what Lu Qi meant and asked: "You mean to specialize in making a product with a differentiated market, compete with Kuaishou, and help Duoduo divert traffic?"
"Yes, that's what it means!"
Zhang Yida looked a little grim, "Kuaishou has some accumulated fans, so I'm afraid it won't be easy to compete with them."
"I know that," Lu Qi said lightly, "but if we don't fight now, when Kuaishou grows up, this battle will be even more difficult to fight in the future."
Zhang Yida is also thinking that in the short video field, he will definitely compete with Kuaishou in the future.
Should we take the war to Kuaishou’s back garden now?
Lu Qi continued: “Currently, DouYu’s biggest enemy seems to be Kuaishou, because they are closer in terms of user numbers.
In fact, it’s quite the opposite. We are almost in the same boat as Kuaishou, with different user groups and different monetization methods.”
Lu Qi looked straight out of the window and said: "What we really need to pay attention to is Toutiao. They are currently our enemies on the same track.
Although they are far behind us, they have never given up. Didn't they just complete a new round of financing recently?
I guess they will definitely make big moves in the near future."
Zhang Yida nodded and got to the point. Compared with Kuaishou, he was more afraid of headlines.
Zhang Ming is too low-key, as if he is harmless to humans and animals, but he often takes the trouble to surprise the industry.
"Toutiao needs attention, but we cannot ignore Kuaishou."
Lu Qi analyzed, “Kuaishou currently operates in third- and fourth-tier cities, and we operate in first- and second-tier cities.
After the incremental market is fully digested, if we want to go further, we and Kuaishou will eventually start a battle.
Now that we take the initiative to launch an attack, it is just bringing the battle forward."
Zhang Yida said: "Lao Lu, what you said makes sense, but if we want to enter the third- and fourth-tier cities and rural markets, we must have a starting point, right?"
"Yes, Pinduoduo is the best starting point!" Lu Qi's lips curled up slightly, "WeChat has been providing traffic entrances to Pinduoduo, and they are all price-sensitive users, most of whom come from third- and fourth-tier cities.
As long as this group of users can be redirected to the new short video platform through Pinduoduo, then our work will be half successful."
Zhang Yida shook his head, "I'm afraid there are some difficulties. Users are not so obedient. Many people buy things through WeChat official accounts and Zodiac Grid.
Pinduoduo’s independent APP traffic is less than half of WeChat’s traffic.”
"This depends on the operation methods!" Lu Qi said with a smile, "Didn't Pinduoduo also offer pots and pans last year? Wouldn't it be nice to do it again?"
"Okay!"
What Zhonghe Group is most in need of right now is cash. As soon as Pinduoduo and Doushi merged, they immediately had an extra US$1 billion in cash on their books.
This is because Pinduoduo has been burning a lot of money in recent months, and Doushi has also been burning money to buy traffic and content, and also acquired Bilibili.
Had they merged a few months ago, the two companies would have had a combined cash of $1.6 billion.
"Now let's talk about the other half of the conditions that determine success."
Zhang Yida also concentrated his attention, ready to hear what Lu Qi had to offer.
"Live e-commerce, let the top account of the short video platform start live streaming to bring goods, and Pinduoduo will supply the goods.
Isn't Yida your Daya Media doing a good job in this regard? I heard that selling dog food in Douyu attracted 100,000 viewers?"
Zhang Yida said: "We do have some experience in this area. The key is to increase the user base of our short video platform."
“You don’t have to worry about user growth, DouShi and Pinduoduo have many internal experts.”
Lu Qi's face was filled with a confident smile, "As long as we let the top anchors make money, other users will naturally follow suit.
As long as the short video + Pinduoduo ecosystem is established, it will have many advantages that other peers do not have.
Taobao’s products are more expensive than ours, and Kuaishou lacks an e-commerce platform.
Even if Kuaishou and Taobao join forces, in the end they are two companies.
As a company, we can unify our orders and actions, have better communication efficiency than them, and can achieve lower costs than them."
Zhang Yida is a little tempted. Kuaishou’s live broadcast revenue of tens of billions a year is very enviable!
“Taking a step back, we can’t beat Kuaishou in the sinking market, but as long as we gain a firm foothold, we will also squeeze a certain amount of Kuaishou’s market, consume their future potential, and prevent them from becoming a strong rival of DouShi in the future.
And Pinduoduo, if the short video plus live e-commerce strategy is successful, it will establish a new business growth engine.
We currently hold US$1 billion in heavy capital, and it would be a huge loss if we don’t turn it into our own strength and product barriers as soon as possible.”
Lu Qi paused and concluded: "At present, I have roughly summarized a few businesses of the two companies.
The first is to launch advertising commercialization on DouYu, the second is to launch a new short video platform and join forces with Pinduoduo to launch live streaming e-commerce, the third is to incubate the live streaming platform with Musical.ly, and the fourth is to join hands with Ruixiang to establish an AI laboratory."
“Musical.ly incubates live streaming platform?”
Lu Qi nodded, "Yes, according to my friends in Silicon Valley, Instagram's Live broadcast function will be officially opened to all users in the United States in December.
Rewards for props during live broadcasts can also be considered a good source of income. I think Musical.ly, with so many users, should explore commercialization in a timely manner.
In your plan, Musical.ly will become a super APP covering more than 2 billion users in hundreds of countries around the world.
To achieve this goal, countless manpower and material resources need to be expended.
To obtain huge amounts of financing, in addition to rapid growth, you must also prove your business capabilities.
Financing of billions or even tens of billions of dollars is not something that some domestic entrepreneurs can fool around with just a PPT."
"Okay, no problem, I agree!"
Zhang Yida asked again: "How to divide the shares between AI Lab, Ruixiang and Zhonghe? And how to own the patents?"
"The equity is equally divided, each holding 50%, and all data of the two groups are injected at the same time. The patents belong to the new company, but both Ruixiang and Zhonghe can use all the patents developed by the laboratory.
If external companies want to use the patent, they need to pay for authorization."
Zhang Yida originally wanted Ruixiang to occupy 51% of the shares, but considering that his shares in Ruixiang were only 38.18%.
The shareholding in Zhonghe Group is as high as 71.05%, and it also indirectly holds 0.29% through Ruixiang Industrial Fund.
If Zhonghe Group holds more shares, it will maximize its own interests.
At present, Ruixiang's valuation exceeds US$30 billion and its users exceed 500 million, while Zhonghe Group's valuation is only US$19 billion and its domestic users are less than 300 million.
Of course, Ruixiang Group crushes Zhonghe Group in all aspects, so there is nothing wrong with asking for more shares.
In the long run, it is very possible for Zhonghe Group to compete with Ruixiang Group or even surpass the latter.
"Okay, I will negotiate with Rui Xiang."
Zhang Yida asked again: "Can Zhonghe Group's funds still support such a big move?"
"It won't last long!" Lu Qi shook his head, "But if the commercialization of DouShi goes smoothly, it should be able to alleviate the financial pressure.
DouShi also has a commitment of tens of billions of revenue in the next year, which is related to valuation. DouShi executives headed by Zhang Lan are holding their breath in their hearts, saying that they will die to achieve this goal.
If tens of billions are recorded in the next year, financing matters can be slowed down a bit."
"Okay, just take it slow!"
Zhang Yida does not want to let Zhonghe Group start financing now. First of all, the current valuation of US$19 billion is a bit high, and it is estimated that it will be difficult to raise funds at this pre-money valuation.
Secondly, there is still US$1 billion in cash on the account. It is almost spent and the valuation has gone up. It is the most appropriate time to raise funds.
…
Toutiao D round financing reception.
It was a rare occasion for Zhang Ming to take off his T-shirt and put on a decent suit.
Although he is a programmer, he still prefers T-shirts, and he always feels uncomfortable wearing a suit.
"Lao Zhang, congratulations! Toutiao has completed US$2 billion in financing, and has entered the ranks of super unicorns worth tens of billions of US dollars!"
The chubby Chen Wei, wearing a black suit and holding a red wine glass, came from a distance to congratulate Zhang Ming.
Zhang Ming smiled modestly, "No! Our Toutiao is lagging behind. After so many years of hard work, our valuation is only US$11 billion.
But it’s you, Chen. After merging with Uber, your Didi valuation exceeded US$35 billion, firmly ranking fourth in China’s Internet rankings.”
These words scratched Chen Wei's itch. Since acquiring Uber China in August, he has ushered in a new highlight moment in his life. Wherever he goes, he is accompanied by flowers and applause.
However, as the head of a super unicorn company, Zhang Ming's praise still made Chen Wei quite proud.
"Hey, it's still far from enough!"
Chen Wei shook his head and became self-effacing, "Leech Financial only completed a US$4.5 billion Series B financing in April, with a valuation of more than US$60 billion;
There is also the Rice Group, which was valued at US$45 billion two years ago;
NetEase is not bad either, and its market value has been fluctuating at more than 30 billion US dollars.
I am not like some people who shamelessly say that I am the fourth largest Internet group in China!"
Zhang Ming laughed and then remembered that Chen Wei and he were on a united front and both had an enemy named "Zhang Yida".
"What are we talking about? So happy!" Huang Xin also came over with a wine glass.
"Are we talking about who will win the title of the fourth largest Internet company?"
Chen Wei looked at Huang Xin again and said, "I think the Magnesium Group still has a good chance of competing for this title."
"Let's forget it! If we want to fight, Didi will fight with Leech Financial Services, Rice, NetEase, Ruixiang, and Zhonghe."
Chen Wei was a little unhappy, "I think the first three companies are okay, but forget about the last two! It's just a big bubble."
Zhonghe Group claims a valuation of US$19 billion. How long has it been established? When companies that were established less than two years ago merge, their valuations will skyrocket."
Turning to look at Huang Xin, "If I remember correctly, Magnesium Group raised US$3.3 billion in January this year, and its valuation is only US$18 billion, right?"
"Yes, our development is quite bumpy, so we still need to work hard!"
Chen Wei added: "Magnesium Group is only valued at 18 billion, why should Zhonghe Group be valued at 19 billion?"
After sneering a few times, Chen Wei looked at Zhang Ming and said, "Old Zhang, do it well. The one I'm most optimistic about in the short video field is Toutiao.
Compared with some people, your humility and courtesy are so rare!"
Zhang Ming smiled awkwardly, Brother, did you take any gunpowder today?
Shen Beipeng walked over with a red wine glass, followed by a group of headline shareholders: Source Code Capital, SIG Haina Asia, DST, 360, Sina, Shunwei Capital, CCB International, and Huayi Capital.
Lei Dongming was also present today on behalf of Huayi Capital, and others looked at him somewhat strangely.
Everyone knows that Huayi Capital is also a member of Zhang Yida’s industrial group, but it actually invested in its competitor Toutiao. It’s really fucking weird.
Is it hedging his bets and betting on the track?
Lei Dongming asked Zhang Yida whether to take advantage of Toutiao's D round of financing to sell off Toutiao's shares held by Huayi Capital.
Zhang Yida said: Look at the attitude of the headlines. If your fate is really over, then don’t force it.
Then, Huayi Capital was out.
Huayi Capital has such a close relationship with Zhang Yida. Even if Zhang Ming can tolerate it, other shareholders of Toutiao cannot.
If Huayi Capital finds out about the company's secrets and then turns around and tells Zhang Yida, how can Toutiao fight with Zhonghe Group?
As a result, Lei Dongming "tearfully" exited with $1 billion.
Two and a half years ago, Huayi Capital invested US$100 million in Toutiao, accounting for 10% of the shares.
Now it is out with a pre-money valuation of US$10 billion. In two and a half years, the investment has increased tenfold, and the annual return has reached 400%, which is not bad.
Chen Wei glanced at Lei Dongming. The headlines had removed the cancer of Huayi Capital. Did Didi also want to learn from it?
Shen Beipeng was somewhat embarrassed. He explained to Lei Dongming on the side: "Even if Blackshirt doesn't invest, SoftBank or other institutions will."
"I understand, I understand, just buy a track!" There is nothing that Lei Dongming cannot understand. The shopping mall is so complicated, and friends and enemies are changing at any time.
There's nothing wrong with it from Blackshirt's perspective, hedging risks and hedging your bets.
The most important thing is that the basic business aspect of this Toutiao financing is the Toutiao APP, not short videos.
How many users does Toutiao short video have?
Excluding short videos, Toutiao is still a super unicorn with a valuation of tens of billions of dollars in the field of news and information distribution.