The due diligence on Kuaishou has also been completed, and there are basically no major problems.
The due diligence is about the number of Kuaishou users, financial data, contract agreements, intellectual property rights, etc.
As for the most important asset - employees, Su Hua also comforted them.
When Zhonghe Group acquired Kuaishou, it did not want to buy an empty shell. The employees of Kuaishou are also very valued by Zhang Yida.
If a large number of employees leave and are replaced by people from Zhonghe Group, there will inevitably be a period of confusion, and it may also cause great fluctuations in performance.
After everything was confirmed, Zhang Yida and Su Hua signed the company acquisition agreement on behalf of their respective companies.
Kuaishou has since officially changed ownership of Zhonghe Group!
Kuaishou's brand will continue to be retained and it will become a wholly-owned subsidiary of Zhonghe Group.
The reason for this arrangement is also considering that the content tonality of the two short video platforms is different.
If you force the fusion, it might be counterproductive!
Of the two short video platforms, one will focus on first- and second-tier cities, and the other will focus on third- and fourth-tier cities and rural markets.
Attacking from both ends to the middle is enough to sweep the entire Chinese market and wipe out all users in one fell swoop.
When the market is fully covered and the gap in content tonality is not so big, merging into one company will be a matter of course.
After signing, Zhang Yida smiled and shook hands with Su Hua, "Welcome to the Zhonghe family!"
"Thanks!"
Su Hua smiled and said, "Thank you, Mr. Zhang, for your consideration. Let's work together to achieve the goal of being the world's No. 1 short video platform!"
Su Hua's role status has entered very quickly, from the top CEO of Kuaishou to the president and third-in-command of Zhonghe Group's short video business group.
He didn't have any resentment or dissatisfaction. He knew that Zhang Yida had put him in great use.
In general corporate mergers and acquisitions, the CEO of the acquired company is given a seemingly high-level position, but in reality he has little real power.
When the acquisition target is digested and the rights are smoothly transferred, it will be time for you to retire with honor! Just like a mascot!
There is a reason why Zhang Yida arranged it this way.
There is no doubt that Su Hua is a capable person, otherwise Kuaishou would not be where it is today.
Even if Kuaishou sold itself, it was sold for a sky-high price of US$10 billion, which has surpassed 99% of entrepreneurs in the world.
As for loyalty, it is difficult to say that employees of modern companies are loyal.
Generally, companies use high salary plus equity and stock options to retain talents.
When Zhonghe Group acquired Kuaishou, in addition to giving US$2 billion in cash, it also issued an additional 10% equity to Kuaishou shareholders.
Su Hua owns 20.42% of Kuaishou. In addition to receiving more than US$400 million in cash, Su Hua also received 2.042% of Zhonghe Group’s shares.
With a shareholding ratio of more than 2%, Zhonghe Group is the largest individual shareholder other than Zhang Yida.
Therefore, he, Su Hua, is also one of the many bosses of Zhonghe Group.
If you work for yourself, you should be motivated!
In addition, Su Hua also has lofty ambitions.
More than 400 million US dollars in cash will indeed allow him to live a lifetime of food and clothing.
But this alone cannot make him a great entrepreneur.
The grand blueprint of the world's largest short video platform described by Zhang Yida really made him daydream.
He decided to follow Zhang Yida.
After bringing short video to the number one position in the world and making Zhonghe Group the world's top technology company, he will consider pursuing his next dream.
Anyway, he is still young and cannot compare with Zhang Yida, but he is also a post-80s generation and has a long life ahead of him, so he has plenty of time.
Zhang Yida took good care of Su Hua's spiritual enjoyment and gave Su Hua the title of co-founder of Zhonghe Group.
This co-founder title was first held by a group of small partners who started building products from scratch.
Later, in order to introduce talents, it was slowly overtaken by startup companies.
The company has already reached Series A and Series B. When we introduce a CFO, in addition to allocating shares, we will also give him the title of co-founder.
It's just a title, and Zhang Yida has nothing to be reluctant to give up.
His purpose is to use this title to give Su Hua a sense of belonging to Zhonghe Group.
Su Hua wanted to refuse at first. He felt that the predecessors of Zhonghe Group, Dou Shi and Pinduo Duo, were born more than two years ago. How can he be called a co-founder if he joins now?
With this title, he, Su Hua, walks out, who doesn't know the details?
But Zhang Yida told him: Zhonghe Group has been on the road to entrepreneurship, and partners who have made significant contributions to the company can become co-founders.
After the merger of Zhonghe Group and Kuaishou, it started a second venture.
So there is nothing wrong with your title of co-founder.
Su Hua thought about it, it was just a title, it didn't matter if he wore it.
By letting Kuaishou merge with Zhonghe Group, it can indeed be regarded as solving the other party's big trouble. He has made outstanding contributions to Zhonghe Group and deserves this courtesy.
And he is not the co-founder of Guangban. He is the second largest individual shareholder of Zhonghe Group, with an equity value of more than 10 billion yuan.
In addition to Su Hua, Chen Yixiao and other three original founders of GIF Kuaishou also made considerable profits.
Chen Yixiao also received about US$300 million in cash, plus about 1.5% of Zhonghe Group’s equity.
In addition, he joined Digua Video and served as CTO.
Yinxin and Yang Yuanxi each received US$40 to 50 million in cash, plus 0.2%-0.3% of Zhonghe Group’s equity.
The two people, who were wealthy and free, chose to quit.
Zhang Yida also let them go and offered them the position of senior consultant of Zhonghe Group.
After a while, after the handover is completed, the two of them will completely quit Kuaishou and Zhonghe Group.
Of course, the shares of Zhonghe Group are still retained. The two of them will be rich people and enjoy life.
The Kuaishou equity of Blackshirt Capital, Penguin, Ruixiang Phase I Industrial Fund, and Qiandu have also been exchanged for the equity of Zhonghe Group.
Penguin's shareholding ratio did not increase but decreased, from 14.5% before the merger to 14.45%.
Because Penguin’s shareholding in Kuaishou is not high, only 14%, and not all of it has been exchanged, only 80% of it.
For the other 20%, Penguin received a cash return of US$280 million, almost recouping the US$350 million capital invested in Kuaishou.
Ruixiang’s shareholding in Zhonghe is 3.006% held by the third-phase fund and 0.38% held by the first-phase fund.
Zhang Yida's personal shareholding in Zhonghe Group dropped to 56.46%.
Zhonghe Group acquired Kuaishou for a sky-high price of US$10 billion. When this news came out, eyeballs were shocked.
Many people say it's not worth it and they've made a loss.
Some people in the industry believe that it is not a loss at all. In the future, Zhonghe Group will dominate the short video track alone, with few domestic rivals. This merger and acquisition strategy is of great significance.
When one melon was not finished, another melon came.
Ruixiang Digital Technology Group announced the completion of Series E financing of US$6.6666 billion, breaking the previous global record of US$4.5 billion in single-round financing set by Leech Financial.
The valuation of Ruixiang Group has reached US$66.6666 billion, which is no longer far away from Leech Financial Services Group with a valuation of US$75 billion.
Many netizens felt that this number was too clever, and they came to Ruixiang's official Weibo and official Douyin to comment.
"Ruixiang, 666666!"
"Mighty and domineering, 6 wins a batch!"
"Repost this Weibo/Dikvi, you will be 6 all the way to the end this year!"
…
Because of this auspicious number, Ruixiang also became a hot search on Weibo.
But it didn’t take long for Weibo to take it down.
In response to this stingy attitude, Zhang Yida posted an angry post on Weibo, questioning Weibo's "fair and neutral" platform positioning.
"This is no longer the original Weibo. Under the coercion of capital, she has become selfish and rotten...
I recommend everyone to play DouShi or KuaiShou, they have the most fun and novel short videos.”
Not long after this Weibo post was posted, Zhang Yida’s account was frozen.
Including the Weibo post that was sent out, it was also deleted.
But public opinion is already fermenting, and many netizens have seen Zhang Yida's comments and questions.
Toutiao, public accounts, DouYu and other self-media are beyond the control of Weibo, and they have written articles to express their own opinions on this matter.
"Mr. Zhang Yida's words let us see the hegemony and position of Weibo.
Even a top entrepreneur who owns two super unicorns with a combined valuation of over 100 billion has suffered unfair treatment.
What about ordinary people?
…”
This is the opposite view.
"Zhang Yida is gone, he is no longer the young man he used to be..."
Relying on the fact that he owns two super unicorn companies, he openly slanders his peers, and then shamelessly promotes his own products...
Zhang Yida, please keep a low profile, you are not the head of the third largest Internet company yet..."
The topic has gone awry here, and people have realized a very important issue.
Who is the third largest Internet company?
Qiandu is getting old, Leech Financial Services is at its peak, Didi is attacking from all sides, Zhonghe Group has swept the world, Ruixiang Group... 66.666666666 US dollars, 9 6...
Ever since Qiandu fell behind and the small mobile Internet giants grew up, there have been many disputes in the industry about the ownership of the title of the third largest Internet company.
As Leech Financial, Didi, Zhonghe, and Ruixiang respectively completed huge financings, this controversy has been pushed to a climax.
Every netizen wants to prove that his point of view is correct, so he puts out various data about the company he supports.
"Leechie Financial Services has more than a dozen financial licenses for banking, insurance, funds..."
"Sorry, Ruixiang has one more consumer finance card than you."
"Didi smiled and said nothing, my daily orders are 30 million."
"Zhonghe Group hehehe, I am the most successful in globalization. Do you have a short video that hundreds of millions of foreigners are playing?"
…
Zhonghe Group's valuation was also a focus of discussion.
According to public financing data, Zhonghe Group’s post-investment valuation is only US$40 billion.
Then it acquired Xiaomeng for US$500 million and Kuaishou for US$10 billion.
Counting the passage of several months, most people believe that Zhonghe Group's valuation does not exceed US$55 billion.
After Didi acquired Huimin Travel, it completed a huge round of financing of US$5.5 billion in the first half of the year, with a valuation reaching US$60 billion.
So most people’s ranking is as follows: Leech Financial Services Group 75 billion US dollars > Ruixiang Digital 66.6 billion US dollars > Didi Chuxing 60 billion US dollars > Zhonghe Group 55 billion US dollars.
Zhang Yida's supporters were furious and put forward a new view: the merger of Ruixiang and Zhonghe Group would result in a valuation of over US$120 billion!
No one said anything now, because there is really no obstacle to the merger of Ruixiang and Zhonghe Group. They are both the same major shareholder.
Can Leech Financial Services Group merge with Ahri? It was because of this issue that they were fighting. SoftBank was probably eager to do so. The key is whether Jack Ma is willing to do so?
With the help of the big moves of Ruixiang and Zhonghe, as well as the quarrel with Weibo, Zhang Yida and the two companies have made a big splash.
While he won countless applause and praises, he was also noticed by countless prying eyes.