This question raised by Bonima made Liu Zhiping and Ren Yu stunned for a while.
"Is this necessary?"
Ren Yu asked first and then put forward his own point of view: "We all have what Ruixiang has. The acquisition of Ruixiang is just a simple addition, and it will not have the effect of one plus one being greater than two."
"Yes," Liu Zhiping nodded, "The acquisition of Ruixiang can only bring about a limited increase in market share, but this is not enough for us to completely overpower Leech Financial Services."
Bonima shook his head, "You have all underestimated Ruixiang, and you have also underestimated Zhang Yida.
Ruixiang has achieved remarkable results in the mobile payment markets in Southeast Asia and India. Compared with Leech Financial Services, it is not at a disadvantage at all.
WeChat, the overseas version of WeChat, has always been half-dead. Except for the local Chinese who use it, it has basically not penetrated the local market.
I’m thinking that if we aggregate those overseas e-wallets and promote them on WeChat, just like the relationship between WeChat and WeChat Pay, will this bring some breakthroughs to our overseas business?”
"Disaster!"
Ren Yu thinks Pony is too optimistic, it's like a story of which came first, the chicken or the egg.
Make instant messaging software first, and then promote mobile payments to get twice the result with half the effort.
On the contrary, you get twice the result with half the effort!
"Pony, do you know the valuation of Ruixiang?" Liu Zhiping asked seriously.
"There has been no financing for two years, so I can't predict it accurately!"
Bonima shook his head first and then said: "Two years ago it was US$27.5 billion. Now it should have doubled to US$55 billion!"
Liu Zhiping nodded, generally agreeing with this number.
He opened his mouth and said: "Our Penguin's current market value has only exceeded 3 trillion Hong Kong dollars, which is only over 380 billion dollars when converted into U.S. dollars.
Now if you want to acquire a company with a valuation of at least US$55 billion, you must consider it carefully!"
Ren Yu frowned, "An all-cash acquisition is basically unrealistic, and we can't afford so much money.
At most, it would spend US$10 billion in cash and issue an additional US$45 billion in shares.
Calculated in this way, it is almost the same as the acquisition of Kuaishou by Zhonghe Group, which requires diluting 10% of the shares.
After deducting the 18.18% of the shares we already hold and acquiring the remaining 81.82% of the shares, we will spend at least US$8 billion in cash, plus an additional 8.0% of the shares."
"Although the equity is diluted, the intrinsic value of the company has increased. These benefits will eventually be reflected in the stock price, and investors and friends will foot the bill."
The issuance of more than eight additional shares is not unacceptable to Bonima.
It mainly depends on whether it is worth it or not!
If the acquisition of Ruixiang can bring greater benefits, he will not hesitate to promote it.
"We have so many discussions now, and the only thing we haven't discussed is Zhang Yida's attitude."
Bonima looked at Ren Yu, "Do you think he won't sell it?"
"According to what I know about him, the possibility is not low." Liu Zhiping also interjected.
"He can sell it when Huimin travels, why can't Ruixiang?"
Bonima smiled and said: "I almost sold the penguin back then! It's a pity that no one knows the goods."
"This is different. Penguin didn't find the right profit model at that time. Faced with the skyrocketing number of users, it couldn't even afford to rent servers."
Ren Yu changed his voice, "What about Ruixiang? It has not raised funds for two years and has reached revenue balance.
The harvest season is about to begin. In this case, will Zhang Yida sell the company?"
"Evaluate it and ask professionals to conduct a comprehensive assessment on market share, revenue, business synergy and other aspects.
We are just talking on paper now. The final decision must be made based on the evaluation results."
Bonima smiled at Liu Zhiping and said, "Okay, then I'll leave this matter to you."
"Okay, leave it to me!"
Liu Zhiping accepted the task with a smile.
…
A white private plane landed at Beijing Capital Airport.
Zhang Yida received a group of oil tycoons from the United Arab Emirates in the VIP private passage.
"Mr. Mansour, long time no see!"
Zhang Yida greeted Manchester City owner Sheikh Mansour who was walking at the front.
The tycoon who came from a royal family did not wear a traditional Arab robe, but a suit.
Since it is not an official state visit, the dress code is more casual.
"My friend, thank you for inviting me to participate in the E-round financing of Ruixiang Digital Technology Group."
Seeing Zhang Yida personally coming to the airport to greet him, Mansour was happy for the courtesy he received.
He smiled, shook hands with Zhang Yida, and added: "Also, thank you very much for coming to pick me up in person."
Zhang Yida smiled and said, "There is an old saying in China: It is a great pleasure to have friends come from far away.
We are friends, little things don’t matter!”
"Yes, we are friends!" Mansour echoed with a smile.
In order to welcome Mansour and his entourage, Zhang Yida specially rented twelve Rolls-Royces and made a great show.
Zhang Yida and Mansour got into the first Rolls-Royce, and the eleven Rolls-Royces behind them were sitting in twos and threes with the entourage that came to the capital with Mansour.
They are all relevant professionals in legal affairs, auditing, financial technology, artificial intelligence and other fields sent by the Abu Dhabi Investment Authority to participate in the financing.
It can be seen that the Abu Dhabi Investment Authority attaches great importance to this private equity investment, otherwise Mansour would not have taken the initiative personally, and also brought more than 20 related professionals.
Zhang Yida's four bodyguards are all on duty today. They work in pairs, each driving a Mercedes-Benz G, guarding the Rolls-Royce fleet one by one.
14 vehicles, with a total value of more than 100 million yuan, are still very eye-catching when driving on the road.
From time to time, pedestrians on the roadside and drivers parked at traffic lights take photos of the convoy. However, they can only take photos of the outside, not inside the car.
Sitting in the car, Zhang Yida did not talk about anything else. Instead, he told Mansour about the history of China's Internet development and its current situation.
Mansour listened very carefully and did some research before coming, but the information showed that it was far less moving than the story told by Zhang Yida.
"So, Qiandu has fallen behind, and the two largest Internet groups in China are Ahri and Penguin?"
Mansour listened to Zhang Yida's story and asked curiously.
"Yes, currently the third largest Internet company, there are many companies qualified to compete, and the one with the greatest hope is Zhonghe Group."
Zhonghe Group? Isn’t that your own company?
Mansour glanced at Zhang Yida and said with a half-smile: "How did I hear that Leech Financial Services Group, Didi Travel Group, and Rice Group are all qualified to compete?"
These days, oil tycoons are not easy to fool!
Zhang Yida sighed in his heart, but said seriously on his face: "Leechie Financial Services should be positioned in technology and finance, just like our Ruixiang, not a pure Internet company.
DaMi Group mainly engages in hardware, not counting; Didi... its valuation is only close to 60 billion US dollars!
Zhonghe Group is already valued at US$80 billion."
"$80 billion!"
Mansour frowned, "Didn't we just complete US$4.5 billion in Series B financing a few months ago, with a post-money valuation of US$40 billion?"
"You know all this?" Zhang Yida was also stunned for a moment. It's normal to think about it carefully. After all, people want to invest huge sums of money, so it's impossible not to do their homework in advance.
"Zhonghe Group has acquired Kuaishou, the largest domestic short video competitor. We are already the well-deserved number one on the domestic short video track."
After finishing speaking, Zhang Yida asked Mansour again: "Do you know about YouTube?"
"You know, Google ranks first in long-form videos in the world, and it's a good business."
Zhang Yida asked again: "Then do you know his valuation?"
Mansour thought for a while, then shook his head and said, "It's hard to guess. Google has a market value of hundreds of billions of dollars, and YouTube should account for one-tenth, right?"
Upon hearing this, Zhang Yida knew that Mansour, who had crammed in knowledge for a while, was still a layman after all.
"According to analysts' speculation, YouTube's revenue this year should be no less than 15 billion U.S. dollars. Multiplied by 7 times the market-to-sales ratio, it would be at least a base valuation of 100 billion U.S. dollars."
Mansour spread his hands and asked, "Does this have anything to do with Zhonghe Group?"
"Of course there is, it's a big deal! YouTube occupies the long video track, and our Zhonghe Group occupies the short video track.
They have over a billion monthly active users, and we are almost reaching that number.
In the Chinese market alone, there are at least 700-800 million monthly active users.
When our overseas layout is completed, Zhonghe Group's short videos will reach at least 2 billion monthly active users.
How much advertising revenue can this contribute? At least it won’t be lower than YouTube.
In addition, there is a company called Pinduoduo within the Zhonghe Group, which makes even Ahri fearful..."
After listening to Zhang Yida's long speech, Mansour pinched his chin and said, "Listen to what you said, the valuation of Zhonghe Group may reach 200 billion US dollars in two years' time?"
"At least this number." Zhang Yida said firmly.
"Short videos, advertising, live e-commerce, social e-commerce..."
Mansour muttered one word after another, looked at Zhang Yida, and praised: "It's amazing! A great company will be born under your hands."
Zhang Yida smiled modestly, "How can my little industry compare with the Abu Dhabi Investment Authority!"
"When the matter with Ruixiang Group is over, can you take me to Zhonghe Group to have a look?"
Zhang Yida smiled and said: "Of course you can. Zhonghe Group also has a global map software that can see the number of users in each city... I will show you how to do it when the time comes!"
"That's so interesting, you must see it!" Mansour said happily.
Once you know it, you may be in a trap. Zhang Yida thought to himself.
When he looked at Mansour, he seemed to be seeing a huge golden mountain.
Mansour has made a thorough investigation of his entire industry, and he has also made a thorough investigation of the UAE's Abu Dhabi Investment Authority behind Mansour.
The United Arab Emirates (UAE) consists of seven emirates including Abu Dhabi, Dubai, and Sharjah, and was established in 1971.
Abu Dhabi is the largest emirate in the United Arab Emirates. It is also the capital and largest economy of the United Arab Emirates. It is almost equivalent to the feudal royal family of the Zhou Dynasty in ancient times and the largest princes.
The Abu Dhabi Investment Authority is the emirate’s sovereign wealth investment fund, with assets under management of US$700 billion.
Like Saudi Arabia’s sovereign wealth fund, it also invested a lot of money in Masayoshi Son’s SoftBank Vision Fund.
Before the 1960s, Abu Dhabi was just a small fishing village. Because it was rich in pearls, the locals made a living by digging pearls and fishing.
It was not until 1960 that a large amount of oil was discovered in the United Arab Emirates, more than 90% of which was in Abu Dhabi. Abu Dhabi became an oil tycoon.
Its GDP in 1970 reached US$898.5 million. Based on the population at that time, its per capita GDP was as high as US$13,500, more than twice the per capita GDP of the United States during the same period.
However, oil resources will eventually be exhausted, and the Abu Dhabi government, aware of this, began to seek a way to sustainably increase revenue.
In 1976, the International Petroleum Investment Company, controlled by the Abu Dhabi government, set out to establish the Abu Dhabi Investment Authority (ADIA) to use the money earned from oil exports for investment. The investment portfolio spans regions and involves a variety of asset types.
In recent years, there has been frequent investment in China.
Participated in Pacific Insurance H-share private placement, Cinda Asset IPO cornerstone investment, etc.
The fund is relatively stable, with an average annualized return of only 5.4% in 20 years.
In private equity investment, there are not many large-scale investment projects.
But the other party was willing to participate in Ruixiang Group's E-round financing. Zhang Yida guessed that he was not satisfied with the return on investment.