“This is the revenue report of DouShi and Musical.ly from April 2017 to April 2018, excluding companies acquired later, such as Kuaishou and Xiaohongshu.
With a revenue of 26.2 billion yuan, is it time for all the bosses to settle the accounts?”
Zhang Yida joked while asking his secretary to send the revenue report to the investors present.
Masayoshi Son was not present in person, but Xue Cunhe of SoftBank China served as the shareholder representative.
Xue Cunhe took the document and read it carefully.
In fact, Zhonghe Group’s Series B financing was betting against Penguin and four other investment institutions.
When SoftBank takes over Penguin's equity, it is equivalent to taking over all its responsibilities and obligations.
Zhang Yida guessed that SoftBank wouldn't be so stupid. Did it suffer for Penguin? It should have signed a supplementary agreement. Each of these large investment institutions is smarter than the last.
Zhang Liping, chairman of Blackstone Greater China, looked at the report in his hand and turned to ask Zhang Yida: "95% of the revenue is contributed by DouShi, and Musical.ly accounts for less than 5%?"
Zhang Yida nodded, “After all, DouShi’s market is in China, the business environment is more familiar, and it contributed 24.9 billion yuan in revenue;
The Musical.ly market is overseas. In addition to being unfamiliar with the business environment, we also want to wait until the market position is more stable before seeking commercial realization.
After all, once ads appear, the user experience becomes worse, not to mention there are several competitors that imitate and follow suit.
Musical.ly won't give them any chance.
Musical.ly's current revenue mainly comes from in-app purchases, a virtual currency that needs to be purchased and can be used to reward hosts.
In the future, advertising and e-commerce will gradually begin to explore."
Bao Zheyu, head of BlackRock Asia Pacific, cursed secretly in his heart, but said with a smile on his face: "Okay, the commercial monetization ability of DouShi surprises me so much that it can even be called a surprise."
When Zhang Yida received the report, he was actually a little surprised. He had basically determined that the bet was stable two months ago.
However, it is still unclear how much equity will be won. The revenue of 26.2 billion is more than 3 billion higher than the 23.1 billion estimated last year. How can it not make people happy?
Dongfang Yu's expression was indifferent, "Yida, how much equity are we going to lose to you and the management? Just tell us the number."
Ma Dongmin was not present in person, and Qiandu was having some friction with Zhonghe, so a man in his thirties in a suit attended the meeting on her behalf.
The man's name is Peter Lam. He is a Hong Kong native, with a background in investment banking and is proficient in asset management.
This Peter was not sloppy at all in his work. After getting the report, he immersed himself in calculation.
At this time, he picked up a piece of manuscript paper and read: "According to the signed gambling agreement, the revenue of 26.2 billion yuan exceeded the gambling revenue of 20 billion yuan, and the valuation increased by US$6 billion.
In other words, the valuation of DouYi and Musical.ly is US$31 billion, and the post-Series B investment valuation of Zhonghe Group is revalued to US$46 billion.
In the B round of financing, our five-party investment institutions invested US$4.5 billion and obtained 11.25% of the equity.
If the valuation is recalculated based on the post-money valuation of US$46 billion, the corrected equity ratio should be 9.78%.
Our five investment institutions lost a total of 1.47% of the equity of the founders and management in the bet.
At the same time, according to the supplementary agreement, these equity shares will be diluted in equal proportions following subsequent financing.
Zhonghe later acquired Kuaishou and Xiaohongshu, accepted the copyrights from the three major record companies, and invested in cash.
This 1.47% equity is currently diluted to only 1.36%.
Based on the amount of financing, Penguin’s responsibility is transferred to SoftBank, and SoftBank assumes 55.56% of the 1.36% equity;
Blackstone and BlackRock each bear 17.78%; we and Mr. Dongfang Yu each bear 4.44%."
Zhang Yida has already calculated it in advance, and it is indeed this number, not bad at all.
So he smiled and praised: "Mr. Peter is so calculating!"
Peter smiled lightly, "We should certainly fulfill these promises that should be fulfilled.
But DouShi and Musical.ly’s revenue statements need to be reviewed by our five investment institutions.”
Zhang Yida nodded, "This is what it should be!"
He glanced at everyone again and said, "The merger of Ruixiang and Zhonghe will be completed soon. Let's implement this matter first to avoid confusion later."
Several investors nodded, but their expressions were not very good.
Bao Zheyu, in particular, gave Zhang Liping a look of displeasure.
It was this idiot who first proposed betting, and then everyone jumped into the pit.
Feeling Bao Zheyu's eyes, Zhang Liping shrugged, expressing that he was innocent.
Besides, weren't you very confident at that time? You even took the initiative to magnify the bet.
Now that you lose, you blame me alone?
Dongfang Yu had a smile on his face. Anyway, he didn't have many shares, so he wouldn't care if he lost some shares.
The key is that DouYu has proven its commercial monetization capabilities, and its valuation may soar like a rocket in the future.
Ruixiang will also merge with Zhonghe, and by then I am afraid it will firmly secure its position as the third largest Internet company.
He felt a little regretful at this moment. Was the investment of US$200 million insufficient?
Xu Xiaoming often showed off in front of him, saying how smart he was and how he fell in love with Zhang Yida.
Now that he is also a shareholder, let’s see how he can show off when the time comes.
But compared to Zhenke Fund, its shares are indeed much smaller, and its financing round is also later.
In terms of return rate, he will definitely not be able to compare with Xu Xiaoming.
He also glanced at Peter Lin, guessing that Ma Dongmin was afraid of being embarrassed if he didn't come over!
After all, his husband won’t be able to sit on the third spot on the Internet for long.
Once Ruixiang and Zhonghe merge, they will crush Qiandu in all aspects from revenue to profit, valuation, and even ecological layout and industrial influence.
Didn't some people say before that Didi, Leech Golden Clothes, Rice, and Goudong have surpassed Qiandu.
But that kind of transcendence is just a transcendence in terms of valuation, influence, actual revenue, etc. are still a bit behind.
After the new group formed by the merger of Ruixiang and Zhonghe came into being, the debate could basically stop.
By then, it will be very lively if there is another rumor that Robin Lee Family Office will invest in Zhonghe Group.
Ma Dongmin may have anticipated the consequences now and had to keep a low profile.
"What is the name of the new group?"
Seeing Dongfang Yu's question, other shareholders also turned their attention to Zhang Yida, and they also wanted to know the answer.
"How about learning from the Magnesium Group and calling it Xinruizhong?"
Dongfang Yu shook his head, "It doesn't sound good, and it's not conducive to brand communication. If you ask me, let's call it Ruixiang Group!"
Ruixiang has been established for a longer time, and Zhonghe Group was also formed on the basis of Pinduoduo and DouShi. The time is still short, and the brand awareness is not as good as Ruixiang.
Moreover, both companies are under your control, so there is no need to follow the example of Magnesium Group and 58, which will give the acquired company a face."
Needless to say, Dongfang Yu’s words still have some insights.
Ruixiang is Zhang Yida's first company, and it can be said to be the place where his dream started. He still wants to retain this brand.
"Okay, just listen to senior brother!"
Dongfang Yu smiled lightly, said nothing more, and looked like a master, hiding his merit and fame.