My Age of Investment

Xia Jingxing laughed because he remembered it.

8848, the earliest e-commerce company in China, is also known as the originator of Chinese e-commerce.

Founded in May 1998, it was earlier than eBay and earlier than Ali.

However, due to various reasons such as the short-sightedness of capital, too much ambition, too weak voice of the founder, and catching up with the Internet bubble, the company went silent in 2001.

However, it has also been brilliant for two or three years. As early as before Ali, it reached a cooperation with China Merchants Bank in 1999 to provide online payment, as well as online purchase of movie tickets and other innovative services.

Its founder, Wang Juntao, is even more famous. His pen name is Lao Rong, and he wrote the famous ball-watching thoughts "Dalian Jinzhou No Tears".

As the CEO of this company, Tan Zhi was once a prominent figure in the domestic Internet at the turn of the new and old centuries.

But because of the decline of 8848, Tan Zhi was also kicked out of the company by capital.

Together with Wang Zhidong, the former president and CEO of Sina, Zhang Shuxin, the founder of Yinghaiwei, Song Chaodi, the chairman of Kelihua, and others, he was included in the "Characters of China's Internet Development in the Past Ten Years - Top Ten Outcomes" by the media. list.

It's not a good list, it's full of frustrated people, the kind that slide from the top to the bottom of the valley.

At this time, Tan Zhi was over half a hundred years old, with silver hair and white temples. From the vice president of UT Starcom, to the vice general manager of Microsoft China, and then to the CEO of 8848, his career had three ups and downs, and everyone thought he had no chance to make a comeback. .

But Xia Jingxing knew that he eventually climbed out of the quagmire, first became the CEO of Focus Media, and later joined Deng Feng's Northern Light Investment as a partner.

How to get into Focus Media?

The answer lies in the current company, Frame Media.

Xia Jingxing recalled that now, Focus Media finally acquired Frame Media and made it a subsidiary responsible for the frame advertising business.

He did not die in the middle of entrepreneurship, but was acquired by a listed company.

From the perspective of entrepreneurship, it is not a big success, but it is also a small one.

There is a certain investment value.

Xia Jingxing recovered his thoughts,

He asked with a smile, "Mr. Tan, I would like to know how far Frame Media has developed and the next business plan."

Chen Hong coughed, brought a pen and paper, handed it to Xia Jingxing, and said with a smile, "This is a non-disclosure agreement, it's a routine business, Jing Xing, you have to sign it."

Xia Jingxing nodded, accepted the agreement, and after reading it carefully, signed his name.

Tan Zhi hit his waist straight, looked at Xia Jingxing, smiled and said, "Okay, let's start, I'll start with the LCD screen advertisement.

In this market, Focus Media and Juzhong Media have formed a huge competitive advantage.

They have completed multiple rounds of financing, hold a lot of money, and the contracts signed with many buildings are long-term, and they enjoy the exclusive right to renew...

Therefore, in this market, we basically have no chance.

Last month, we sold our LCD advertising business to Focus Media for RMB 17 million, completely abandoning this market.

While getting rid of the burden, it also recovered considerable cash flow.

Next, we intend to focus all our energy and resources on the frame advertising market.

This is a market where the princes are fighting, we can avoid the crowd, gather the crowd, and fight a differentiated war.

My idea is to integrate peer companies, increase our market share in frame advertising, and expand the company.

As long as we keep a segment of building advertising, Jin can compete with Focus and Juzhong and seek listing;

Retirement can merge with one of them and get a more desirable valuation.

Because the two companies are currently competing fiercely and the battle is stalemate.

Whoever eats the frame media, the scale of victory may be tilted to whose side. "

Xia Jingxing nodded, he probably understood Tan Zhi's thinking.

Putting it abroad, this is a standard case of capital operation.

Package up a bunch of small companies into one big company and sell it for a high price.

It sounds easy, but in practice there are many problems.

Acquisition negotiation, post-negotiation integration, finding buyers, etc., you have to step on every step, otherwise you will lose your hand.

Chen Hong smiled and said, "Jing Xing, what do you think, does this talisman meet the four characteristics I mentioned?"

Xia Jingxing nodded, "It's quite suitable. The investment is large, the return is large, and the return is fast. Of course, the risk is also very high."

"Actually it's fine."

Chen Hongxuan glanced at Tan Zhi, "Didn't he just say it? Entering can be listed, exiting can be acquired, and the risk is not particularly big."

Tan Zhi nodded in agreement, "Yes, the overall situation is relatively controllable.

During the three months that I joined Frame Media, I have been busy rectifying the company, and the initial results have been achieved.

There is no problem within the company, and the next step is to wait for the process of growth.

All of these can be exhausted, and I will not have any exaggeration. "

Xia Jingxing heard the words of the two and knew that the other party was laying the groundwork for the valuation quotation.

He couldn't remember exactly how much Frame Media sold, but it was about US$180 million, equivalent to 1.5 billion yuan at that time.

Since it is paid in cash + equity, and with a one-year performance bet.

When the delivery took place a year later, Focus Media’s share price more than tripled, and the transaction consideration became 3 billion yuan.

Tan Zhi also became famous in the first battle. In nine months, he acquired and integrated nine companies in the same industry, which was very fast. At the same time, he also created the fastest capital appreciation rate at that time.

In less than a year and less than two years, the rate of return has reached nearly 100 times.

Of course, the specific return is not calculated like this.

Because Frame Media has integrated nine peer companies and carried out a large number of share swap operations.

The initial shareholder return of Frame Media is said to be only 25 times, which is based on the initial transaction consideration of 1.5 billion yuan.

Based on the rough calculation of the current valuation of Frame Media of 35 million yuan, the rate of return is actually more than 40 times.

The more than ten times the loss is naturally diluted by the share swap.

Xia Jingxing was almost at the point. Chen Hong guessed that he wanted to pull himself into the company and invest a lot of cash for Frame Media to prepare for the next acquisition and integration.

In the previous life, without his participation, Frame Media used all the stock exchange operations.

And if he provides a large amount of cash, the dilution of equity can be greatly avoided.

Why Hanergy Investment and IDG no longer inject capital is naturally to avoid certain risks.

Pulling Envision Capital into the company is a matter of favor. Anyway, the next acquisition and integration action will also have the situation of equity dilution.

Xia Jingxing sighed in his heart, he really played a good abacus.

Knowing where his use value lies, Xia Jingxing felt welcome.

Indifferently said: "If you want to complete the integration of the industry, you need a lot of funds, right?"

Tan Zhi nodded, "To tell you the truth, at first, we planned to use stock exchange for all acquisitions.

If an investment institution is willing to provide us with cash, it is undoubtedly the best way to use cash for acquisition, which can ensure that everyone can reap the greatest benefits. "

Xia Jingxing smiled, "Then let's just open the skylight and speak up. How much money do you need? What is the valuation of Frame Media?"

"100 million yuan pre-investment valuation, financing 50 million yuan!"

Tan Zhixiao said, "We have calculated that with this money, plus Frame Media's own cash, and some financial operations, we can basically win the nine major competitors in the market."

txt download address:

phone-reading: