Mi Wenjuan shook the coffee spoon in her hand, and after listening to Zhang Yida explaining his purpose, she replied lightly.
Zhang Yida smiled and said: "Why doesn't it make sense? Now everyone is fighting on their own. Whoever can control more resources and funds will have the last laugh."
Mi Wenjuan smiled and said, "Shall we acquire Yuanfudao, or will Yuanfudao acquire us?"
Zhang Yida was well prepared for this question and did not answer directly. Instead, he talked about the past events of Magnesium Tuan, Dianping, Didi and Kuaidi.
After hearing this, Mi Wenjuan shook her head repeatedly and said with a smile: "Mr. Zhang, I don't study well, so don't lie to me.
Look at who is still on stage and who has retired to the world, and you will know who has acquired whom."
Mi Wenjuan dropped out of school in her second year of high school and went to work at an English training institution run by her uncle at the age of 17.
I have been working for 15 years, and it was not until 2014 that I founded VIPKID independently.
Although she did not even have a high school diploma, she became the youngest director in the history of Beijing University of Foreign Studies.
So she often teases herself, saying that she has little education and no education.
Zhang Yida didn't expect to convince the other party easily, and said: "TAL has always been eyeing this track. Their market value is 16 billion US dollars, their revenue is more than 1 billion US dollars, and they have sufficient operating profits and financing capabilities.
Competing with competitors from all walks of life.
The most important thing is that their business growth rate is not slow, and there is no sign of hitting the ceiling.
If things go on like this, the gap between startups and them will only widen."
Mi Wenjuan smiled and shook her head, "Mr. Zhang, you may not be familiar with the K12 education market. It is a trillion-level market.
At the top of the pyramid are education giants and large institutions, with a large number of small and medium-sized institutions in the middle, and the largest ones at the bottom are individual teachers and studios.
The individual teachers and studios in the country account for more than 70% of the total one trillion. A teacher renting a classroom can become the most microscopic form of tutoring training.
TAL and New Oriental only occupy about 3% of the market share.
The top ten K12 education and training institutions all add up, and their market share does not exceed 5%.
If anyone occupies more than 10% of the industry's market share, it will definitely be a company worth hundreds of billions of dollars.
But the current situation is that the golden mountain is in front of you, and everyone still has to continue digging.
It doesn’t mean that if we merge with Yuanfudao and have two shovels, we can occupy this golden mountain.
It simply doesn't exist in this industry.
The biggest enemy is actually ourselves, forcing ourselves to infiltrate from first- and second-tier cities to lower-tier cities to eliminate small workshops!"
Zhang Yida frowned, and Bonima was right. The two most difficult industries for the Internet are medical care and education.
The former has complex symptoms, while the latter is interdisciplinary and cross-population, making it impossible to provide standardized services.
Including online schools and online education, the Internet is just a tool, and it mainly depends on the teacher.
Seeing Zhang Yida's silence, Mi Wenjuan added: "I actually don't object to the merger. If we occupy 3% of the market share and Yuanfudao also occupies 3% of the market share, after our merger, we will directly occupy 6% of the industry's market share.
Steady on the future, New Oriental is at the forefront.
In this case, the combined company may have a market value of close to 100 billion U.S. dollars, and it can rely on its brand, funds, channels, and teaching staff to capture the maximum market dividends.
But now, it is obviously too early to talk about a merger."
Zhang Yida took a long breath and said, "You are right, I am the one in charge who is confused."
Mi Wenjuan's words made Zhang Yida realize something. Ruixiang is not a headline, and there is no pressure of hundreds of billions of revenue. Going into the muddy waters of education is indeed stretching the front too long.
If the two parties are brought together to merge, the best they can do is cultivate a good future or New Oriental, and then stage the Three Kingdoms.
It’s indeed too early, and it’s not yet time for a dominant player on the track to emerge.
Zhang Yida made up his mind not to forcefully promote the merger.
I chatted with Mi Wenjuan for a few more words and then left directly.
After returning to the company, Zhang Yida hired consultants from McKinsey Consulting and held discussions with company executives for many days.
The topic of discussion was whether to enter the field of education.
The final result of the discussion was to give up!
Although this industry is very coveted, the crossover is too big.
Ruixiang lacks relevant talents and foundation. If it is promoted with the idea of high promotion, traffic is king, and advertising is king, it may end up being nothing.
Zhang Yida doesn’t know whether Toutiao will finally implement online education, but the environment is different.
The cards Rui Xiang had in hand at this time were obviously much better than Toutiao in his previous life.
The discussion for several days was not in vain, and some sharp development directions for the future were discussed.
Frontier technology continues to invest more, e-commerce and content are listed as the next key development directions, and financial business is affected by policies and continues to move forward steadily at the current pace.
Next, Ruixiang’s strategic investment department focused on the upstream and downstream content.
First, it invested 1 billion yuan in Hupu.com, and then invested in Kuaikan comics, audio and video animation, and several novel websites.
Compared with the unicorn fire sale that reached 5 billion US dollars some time ago, Ruixiang invested no more than 2 billion yuan, which seemed a bit small.
…
Lan Lan and Ding Siyao conducted a new round of reports. Digital Domain's acquisition layout has basically been completed, but Zhang Yida still needs to make the final decision.
"In other words, except for Li Jiacheng, all other major shareholders are willing to sell their shares?"
Zhang Yida frowned, he didn't want to owe Li Jiacheng a favor.
Compared with the two big bosses of Erma, he rarely visits these so-called business bosses.
This group of entrepreneurs who started working on the mobile Internet are almost all like this.
As young people, there is no such thing as visiting the docks and making connections.
For them, this is called meaningless social interaction.
"Mr. Zhang, we have absorbed 4.99% of the shares from the secondary market, and the total shares reached verbal agreement with other major shareholders are 43.85%.
It is only 1.16% short of crossing the 50% unconditional mandatory cash offer line.”
Ding Siyao smiled and said, "Actually, there is no need to go to Lijiacheng. We can handle it ourselves."
"Then why are you hesitating? Let's take action!"
Zhang Yida didn't want to wait any longer. A small company with a market value of several billion had been dragging its feet for more than a month.
On October 25, Digital Domain (00547·HK) announced that SoftBank China, the fourth largest shareholder, sold 8.57% of its shares to Ruixiang Digital Technology Group at a price of HK$0.15 per share;
CITIC Group, the fifth largest shareholder, sold its 8.57% stake...
Tokyo Capital Group, the sixth largest stockholder, sold its 6.34% stake...
Through multiple transactions, Ruixiang has held 50.1% of Digital Domain's shares and made an unconditional mandatory comprehensive cash offer to acquire all issued shares of the company.
The highest stock price on that day was 0.25, and the closing price was 0.21, a full 40% higher than the offer price of HK$0.15 per share.