Xiong Xiaoge also understood at this time that the relationship was not about wanting a share of the pie, but about wanting to take all the pot!
He felt that there was little hope for Ji Meng to become a giant with a market capitalization of tens of billions of dollars.
Without him, China’s giants are too cruel and ruthless!
If Guo Lie had Zhang Yida's ability, he felt that he would have a chance of success.
Of course Guo Lie is not bad, but he is still several ranks behind Zhang Yida.
If Guo Lie continues to operate, Ji Meng may be a small but beautiful project, loved by teenagers and female users, but it will not make much money.
But in the hands of Zhang Yida, something different may spark off.
He has no objection at all to selling the company or equity.
He was already in this business, and as long as the money was in place, he could help Zhang Yida persuade Guo Lie to sell the company.
However, selling a company is a big deal, and the main will depends on founder Guo Lie.
He is the CEO, the major shareholder, and holds the most voting rights in the company.
If he doesn't want to sell the company, he can't force him with a knife on his neck.
He looked at Guo Lie and observed the young founder's reaction.
"Jimeng has not hit the growth ceiling yet, and its users have been growing rapidly."
Guo Lie wanted to say something harsh, but Zhang Yida interrupted, "Can you get rid of Meitu, Kuaishou, and Divi? If you can't get rid of them, 100 million users will be your ceiling.
A few minutes of user usage time, and advertising won’t make much money.”
Although Zhang Yida said it very nakedly, Xiong Xiaoge on the side nodded secretly. He was indeed a little giant with a very vicious vision.
IDG participated in angel round and A round investment, why not participate in B round investment?
In a very simple sentence: I am not particularly optimistic about it.
Investing millions is just taking chances. What if the product becomes popular?
If you want to invest tens of millions, you need to weigh it carefully.
“Even with 100 million active users, we can become a unicorn company, right?”
Guo Lie thought for a while and found that he really couldn't refute Zhang Yida's words, but he still replied firmly.
“Are unicorn companies satisfied?”
Zhang Yida's smile and slightly sarcastic tone stung Guo Lie's proud heart.
He thought, as a person born in 1989, if he could build a unicorn company before he was 30 years old.
He should be considered a leader in China and even the world!
Why should Zhang Yida look down on him?
As the chairman of three listed companies of Lenovo, Zhang Yida also owns two super unicorns with valuations of tens of billions of dollars, and there are also several small unicorn companies.
The other party is indeed qualified to say such things. Unicorns are beyond the reach of ordinary entrepreneurs, but for Zhang Yida, they are just companies.asxs.
"Join the Zhonghe Group family, and I will take you to explore the international market and fight against the "dead farts"."
"What the hell?" Guo Lie was a little confused.
"This is the code name I gave Spiegel. After Ji Meng joined our team, Sarabu became our opponent. Sooner or later, we will make them burp."
Zhang Yida's humor almost made Guo Lie forget that the other party wanted to acquire his company, and he started laughing too.
"Don't laugh, I've already seen that boy unhappy, and he's been doing all these stupid things all day long.
Looking at Sarabu's financial report, it showed a loss of US$372.9 million in 2015 and a loss of US$514.6 million in 2016.
There are too many temptations in capitalist countries. I think Brother Burp Fart has long lost the enterprising spirit he once had.
Let Ji Meng enter the international market at this time, just to catch him off guard."
Guo Lie was also thinking seriously about Zhang Yida's words. What would he gain if he sold the company to Zhonghe Group?
Get a large amount of cash and marry Bai Fumei? Or a bigger platform to show off your ambitions?
"Yida, this is too sudden. I need to think carefully."
Guo Lie's mind was very confused now. He had listened to a lot of what Zhang Yida said.
I have worked so hard to start a business, not just for a better life.
A wife with two years of legs, a luxury car and a mansion, a room in a school district for the children, and the oxygen mask will not be removed by the children in the future...
Change the world? Doesn’t exist.
Before you start a business successfully, no one will listen to what you say; after you start a business successfully, your farts will taste good.
Zhang Yida waved his hand, "What are you thinking about? To join Zhonghe Group, you can choose cash + equity, or all cash or all equity.
You are a shareholder of Zhonghe Group and continue to be responsible for exciting products.
We are not superiors and subordinates, but partners.
The achievements of DouShi + Musical.ly are not hidden from you. The number of registered users worldwide is approaching the 1 billion mark.
As far as the eye can see, there are Facebook, YouTube, and Salad.
There's no point in staying at home and fighting. If you fight against a global giant, your time in this world will be worthwhile."
Sarabu’s dilemma, Ji Meng’s shackles, entrepreneurs’ pursuit of material life, Zhonghe Group’s vision, etc.
Zhang Yida has said everything that needs to be said. How to choose depends on Guo Lie himself.
If Guo Lie was smart enough, Zhang Yida guessed that he wouldn't reject him.
Guo Lie turned his attention to Xiong Xiaoge and motioned for the latter to say a few words.
Xiong Xiaoge said, "Let me say a few words! Yida has a thorough analysis of the current situation of the industry at home and abroad.
Jimeng further grew and even broke out of its cocoon into a butterfly and evolved into a social platform.
It is bound to disturb the interests of those with vested interests and lead to more intense fights.
But can this be resolved? Or can we find allies, such as Penguin’s investment?”
“Getting Penguin’s investment can indeed ward off a lot of hidden arrows.
But the key is to prove its own value, for example: let users develop the habit of socializing with pictures.
Picture social networking, Huaban.com appeared in China in 2008, and users can collect pictures from other websites to Huaban.com for sharing.
In 2010, Duitang.com, which had a similar model to Huaban.com, also started to go online. The two websites started the prototype of picture social networking in the PC era.
In 2013, China's mobile Internet users exceeded 500 million, and the proportion of Internet users who use mobile phones to access the Internet increased to 81%. China's mobile Internet industry has also begun to experience a major explosion.
Ruixiang, Yimin Wangjin, and Jimeng were all established in this year.
The field of picture social networking also gradually blossomed during this year. Apps such as Ni were launched online, and picture social networking entered the mobile Internet era.
in was listed on the New Third Board last year and became the first photo social stock in China.
You all know what kind of market the New OTC Market is. I won’t say more.
Let’s talk about the fundamentals of Jiuyan Technology, an in software operating company.
In 2015, revenue was RMB 670,000, with a loss of RMB 212.74 million; in 2016, revenue increased more than 50 times, reaching RMB 37.26 million, with a loss of RMB 131.81 million.”
Zhang Yida laughed while reading this material report. He simply stopped reading and handed the material to Xiong Xiaoge.
Zhang Yida continued: “Through these data and reports, we can see that photo social networking has not become as popular in China as it has abroad.
Analysts value Instagram at US$35 billion, while Sarab’s market value is nearly US$30 billion.
China is such a huge market, let alone a company of the same size, it does not even reach 1% of the size of others.
What causes this?
First of all, Penguin is too powerful. If any social product wants to become big, it cannot bypass WeChat and QQ.
The siphon effect brought about by WeChat and QQ makes it difficult for other social products to shake their status, unless these social products can replace WeChat and QQ, and this possibility is extremely low.
In terms of commercialization, the imagination of picture social networking is also very limited.
There are three and a half main profit models in the Internet industry: e-commerce, games, advertising, and Internet finance.
However, these three and a half profit models have long been divided up by several major Internet giants, making it difficult for small companies to make big breakthroughs.
In terms of functionality, picture social products easily overlap with other social products.
The picture itself cannot be socialized, it is more like a public community, that is, the public pictures further promote social relationships.
This demand conflicts with WeChat Moments and QQ Space. The first platform for users to share photos taken is WeChat Moments and QQ Space.
Rather than in,nice, this greatly reduces the number of pictures they upload.
Without enough pictures uploaded, it will be impossible to attract enough users and accumulate social relationship chains.
After all, picture social networking is still a niche and cannot stand in the mainstream field of vision.
Let me ask you, how many people around you know about photo social networking, or even use photo social networking?
So many companies have not completed the great task for so many years. Is Ji Meng confident to complete it?
Cai Wensheng wouldn’t even dare to say that! Meitu also wants to transform from a tool software into a social platform, but what kind of results it can achieve remains to be seen.”
Xiong Xiaoge nodded, what Zhang Yida mentioned are all the pain points of the industry!
He believes that the most important one is the existence of penguins, which has greatly restricted the growth of domestic picture social networking.
Unlike Facebook, Penguin launched QQ Space in 2005 and WeChat Moments in 2012. Both times, it accurately blocked the neck of domestic picture social networking.
Facebook acquired the photo social software ins in 2012 and the instant messaging software Wazip in 2014.
There is a time lag here. Take Salabu as an example. It was established in 2011. After growing up, it quickly attracted Xiao Mazi’s attention.
Xiao Mazi continued to launch similar products and used all kinds of tricks, but could not stop the take-off of Salabu.
In 2013, a purchase price of US$3 billion was offered, but Brother Burp rejected it.
Until now, the salad cloth has cut off a piece of fat that originally belonged to Facebook's bowl, mainly teenagers born in the 90s.
These people don't like Facebook's products because they think they're not fun enough and old-fashioned, and they prefer the trendy salad cloth.
As for commercialization, Xiong Xiaoge thinks it’s okay. As long as there are enough users and usage time, commercial realization shouldn’t be too simple.
Live e-commerce, game promotion, advertising platform, and providing loans to users, all three and a half profit models can be implemented.
Perhaps it can be of maximum value only when the cuteness is in Zhang Yida's hands.
This guy has a good hand, with plans for three and a half profit models, a bunch of national-level applications, and traffic entrances.
In addition, it would be a good move for Ji Meng to go abroad and see the world.
Domestic users do not have the habit of socializing with pictures, but foreign users do!
If we could achieve tens of millions or hundreds of millions of monthly active users abroad, it would be a completely different story.
"Yida, Ji Meng can indeed exert greater power in your hands. It is also even more powerful for Zhonghe Group."
Xiong Xiaoge looked at Guo Lie again, "Xiao Lie, I personally prefer "merger".
Of course, as the founder and major shareholder, the final decision maker must be you yourself."
Guo Lie nodded and looked at Zhang Yida, "Yida, I can sell Ji Meng to you, but I have a few conditions."
"you say!"
“First, I hope I can continue to be the product leader of Ji Meng;
Second, I hope the team can continue to stay in Pengcheng, because everyone prefers the entrepreneurial atmosphere here;
Third, let Jimeng try to go overseas with the support of Zhonghe Group. I didn’t have the capital before, but now I want to see if I can achieve results.
fourth……"
Guo Lielingling always mentioned seven or eight conditions, which were all small things. The next few were all about team benefits and options.
It can be seen that he still attaches great importance to friendship. He wants to ensure the treatment of the brothers who started the business together before he is willing to sell the company.
None of it was a big deal, Zhang Yida agreed to them all.
After having another meal together at noon, Guo Lie said goodbye to Zhang Yida and returned to Pengcheng. Then he notified the major shareholders and issued a draft resolution to sell the company.
Except for Meitu's opposition, other shareholders expressed support.
Meitu is worried that Jimeng will become a strong rival of Meitu in the future if it obtains Zhonghe Group’s funds and resources.
Other shareholders hope to become shareholders of the promising Zhonghe Group through share exchange.
Meitu held less than 10% of the shares, and opposition had little effect. The enthusiastic board of directors quickly passed a resolution to sell the company.
Zhonghe Group plans to acquire Jimeng for US$200 million, including US$50 million in cash and US$150 million in additional shares.
For the cash part, Meitu took out US$20 million, while Jimeng’s founding team chose to cash out US$30 million.
Other shareholders, such as IDG Capital and Lightspeed China, have chosen to fully exchange the equity of Ji Meng for the equity of Zhonghe Group.
Calculating the valuation of Zhonghe Group is a bit troublesome, as the last round of financing was a year ago.
In the meantime, we experienced several major events including the merger of Pinduoduo and DouShi, Pinduoduo’s GMV skyrocketing and DouShi, and Musical.ly’s rapid user growth.