Ding Sanshi shook hands with Zhang Yida warmly, "Mr. Zhang, welcome to NetEase to guide our work."
"Brother Sanshi, what you said makes me terrified! You are a senior, and NetEase is also our long-term learning partner.
Also, you might as well call me Yida, it’s too unreasonable.”
Zhang Yida was polite, although Ruixiang and NetEase competed in the game business, and even "Knives Out" was hacked by DouShi, Kuaishou, and Bilibili's short videos and live broadcasts.
But this does not affect the sympathy between him and Ding Sanshi!
Lao Ding is also a sentimental Internet person. He likes music and created NetEase Cloud Music. He also likes to eat safe pork and created Weiyang Pig.
This is a big shot who turned his hobbies into a career and lived a life that everyone envied. He raised pigs during the day and played DJs in nightclubs at night.
And the company's business has not fallen behind. NetEase was the best among the three portal giants. Its games ranked second in the country, and its market value ranked among the top five listed Internet companies in the country.
Today, when Charles suffers from depression and Sina seeks refuge with Ali, NetEase can still achieve such results.
I have to praise that Ding Sanshi does have two brushes!
Ruixiang and NetEase also cooperate in many businesses, such as NetEase Yanxuan and NetEase Kaola launched Pinduoduo.
As Huang Xin said, "competition and cooperation" will be the norm in the future. There will be competition and cooperation between companies.
Ding Sanshi laughed and narrowed his eyes.
Although there was some unpleasantness between him and Ruixiang, the story has long since ended.
Businessmen should focus on money!
He invited Zhang Yida to sit down and drink tea, and chatted about some major events that have happened on the Internet in recent times.
“Ruixiang’s valuation of US$250 billion is too low!”
Ding Sanshi smiled and said, "If you ask me, I will ask for a minimum of 300 billion."
Zhang Yida smiled lightly, "Many of our businesses are not very advantageous in the competition. It is normal for the market to have some doubts.
Of course, we have to look at the road show situation and make adjustments at that time."
Ding Sanshi nodded. IPO is equivalent to selling goods. If you sell too much at one time, it will be worthless.
Pricing and fundraising amount need to be adjusted based on actual conditions.
After a brief conversation, the two finally got down to business.
"NetEase Kaola has been losing money for several years since its launch in 2014, and its business growth rate is also declining. Have you ever thought about reducing the burden on NetEase?"
Since the beginning of the year, NetEase Kaola has been experiencing constant negative news.
At the beginning of the year, the merger talks with Amazon China ended in failure, and then there were negative news such as layoffs and sales.
Internal profitability is difficult, business growth is declining, and externally there are Tmall International, Goudonghai Global, and Vipshop International to catch up.
Ding Sanshi learned from the pain and decided to cut off the warrior's wrist, which led to the scene of Zhang Yida going to Lin'an in person.
"Well, NetEase Kaola is currently the number one in the industry, occupying 27.7% of the market share of the entire cross-border e-commerce industry."
Ding Sanshi smiled and said, "From the bottom of my heart, I don't want to see the company being sold."
Zhang Yida is smiling but not smiling, who is fooling him?
First, he emphasized NetEase’s market share in Kaola, and then said he did not want to sell the company.
All I say is that I want a high price!
"Brother Sanshi, just set a price! Ruixiang really wants to develop a new business in cross-border e-commerce."
Zhang Yida said seriously that although Ruixiang has two major cross-border e-commerce business platforms, Xiaohongshu and Duoduo International, their market share is not high.
Among them, Xiaohongshu occupies 3.7% of the market share, while Duoduo International only accounts for just over 1% due to its late start.
Tmall International has a market share of 25.1%, Goudong and Vipshop have a market share of 11.6% and 9.4% respectively.
Ruixiang's two major business platforms combined can only rank fifth in the country.
If you include Amazon's overseas purchases, which has a market share of 6%, Ruixiang can only rank sixth in cross-border e-commerce.
With the acquisition of NetEase Kaola, Ruixiang can immediately become the first in this field.
And with the help of Kaola's brand, Pinduoduo can complete a brand upgrade, which is similar to the tens of billions of subsidies in that it aims to cut into the high-priced customer market.
Ding Sanshi laughed, looked at Zhang Yida, and said, "Shall I make a price? Are you sure?"
Zhang Yida nodded very calmly and raised his hand to signal Ding Sanshi to continue quoting.
"Three billion US dollars!" Ding Sanshi smiled and spit out a number.
Zhang Yida smiled and said nothing. Ding Sanshi really treated himself like a local tycoon.
“Although NetEase Kaola currently ranks first in the market, the gap with Ali is constantly narrowing, and currently there is only a 2% gap.
Cross-border e-commerce is an industry that competes with channels, supply chains, logistics and traffic.
Even after we take over Kaola, we still need to spend a lot of money to compete with Ahri."
Ding Sanshi smiled and said, "But at least there is a chance for confrontation, isn't it?"
The subtext is that if it does not acquire Kaola, Ruixiang will not be qualified to compete with Ali in the field of cross-border e-commerce.
Zhang Yida is not angry either, because what he said is also true.
"NetEase Cloud Music is developing very well, but if we want to compete with Penguin, we have to work hard."
Zhang Yida took a sip of tea and said calmly.
Ding Sanshi felt that Zhang Yida was dancing very fast, so why did he get involved with NetEase Cloud Music again?
He followed Zhang Yida's words and asked with a smile, "Yida, what do you have in mind?"
Zhang Yida pursed his lips and smiled, "I can't speak of high opinions, but I have a few suggestions."
"Please speak!" Ding Sanshi raised his hand.
Zhang Yida was not in a hurry to answer this question, but talked about Penguin's layout in the upstream and downstream of music.
“The cross-shareholding of the world’s largest music streaming media is very popular, and I heard that it is planning to invest in Universal Music recently.
If they succeed, it will really be a disaster for Beagle, and Penguin will indirectly hold shares in Resso.
All domestic music streaming media will live in the shadow of Penguin, just like now, when you purchase music copyrights, you have to buy it from Penguin."
Zhang Yida sneered, "If I'm right, NetEase Cloud Music is losing a lot of users, right?
After buying a membership, I still end up with a lot of songs that I can’t listen to or download.
If Penguin wants to start other music companies in China, it should not be too simple.
Although NetEase Cloud Music has a good community atmosphere, most of the popular songs are not available, so users will still vote with their feet.”
Ding Sanshi frowned, what Zhang Yida said was correct.
The biggest problem is that NetEase entered the game late, and he himself was reluctant to play the game and bet heavily on the music field.
"In your opinion, how should we break the situation?" Ding Sanshi asked.
"Use force to break the situation and break Penguin's monopoly on music copyright."
Zhang Yida smiled and said, "Penguin can invest in the three major records, and so can we!
In any case, Penguin can no longer be allowed to monopolize the general copyright agency in mainland China."
Ding Sanshi thought Zhang Yida had some great ideas, but it turned out that he was still a gold and dollar player.
He smiled and said, "Yida, the amount of money required to invest in the three major records is not a small sum.
You have to have at least 5 points of investment before you can be said to be a relatively important shareholder and have the ability to exert certain influence on the record company.
The combined valuation of the three major music labels is nearly US$90 billion, and a 5% stake would cost almost US$4.5 billion.
Isn’t it easy to come up with such a large amount of money?”
Zhang Yida smiled and said, "We can pay for this after Ruixiang completes its listing."
"What does your investment in the three major records have to do with us?"
Ding Sanshi basically figured out some of Zhang Yida's tricks, but he still pretended to be ignorant and asked.