My Age of Investment

Chapter 769 Strategic Merger

After a few days.

In a high-end hotel near Zhongguancun, in front of many invited media, Yang Haoyong of Ganji.com and Yao Jinbo of 58.com signed an agreement and announced the strategic merger plan.

After the merger of the two parties, Ganji.com will officially change its name to Ganji Wuba Group, referred to as Ganji.com.

In fact, Ganji.com acquired 58 Tongcheng, just to give Yao Jinbo and 58 Tongcheng a group of entrepreneurial veterans and a group of investors a step down.

One of the two companies was randomly selected, and its market share exceeded other classified advertising players by several times.

After the merger, this market gap will be widened to more than ten times, and it will no longer be in the same order as other competitors, and track-dominating players will be born.

At this time, there is no such thing as Internet anti-monopoly in China, and no one jumps out to make irresponsible remarks. At most, they think that the winner of the information classified advertising track has no suspense.

What made many invited reporters feel no suspense was the B round of financing announced by Ganji Wuba Group at the meeting.

This round of financing was led by Northern Light with US$10 million, and Capital Today and several other 58 old shareholders jointly invested US$10 million.

Among them, only 10 million US dollars will be injected into the newly born Ganji Wuba Group.

The other 10 million US dollars will be used to acquire nearly half of the equity held by Yao Jinbo and the management of 58.com.

In other words, Yao Jinbo and the management all chose to withdraw with cash, and they no longer had half a dime relationship with the new company.

This is also in line with human nature.

Yao Jinbo knew that he had done something unpopular, so it was the best choice for him to leave completely with tens of millions and look for opportunities again.

In addition, Capital Today and several other institutions together hold more than half of the equity in 58.com, which will be merged into the new Ganji 58 Group at a price of more than 10 million US dollars to obtain additional new shares.

At the same time, the $10 million they injected into the new company will also be exchanged for some new shares.

The new Ganji Wuba Group will be valued at 70 million US dollars, and the external publicity claims to be valued at 100 million US dollars because of the premium effect of mergers and superimpositions.

It’s just that internally, Envision Capital reached a cooperation agreement with several institutions such as Capital Today, and did not pay attention to the valuation issue, which made all parties generally satisfied.

In the end, after the merger, Vision Capital will hold a total of 28.22% of the shares of Ganji Wuba Group through its multiple funds, which is a lot lower than the original shareholding of 49.38%, but the intrinsic value has increased a lot.

Xu Xin is very satisfied with this merger plan, because Capital Today has acquired 15% of the new company's equity,

When the company is listed, the return on investment will be very impressive.

The several small institutions that waved their flags behind her also obtained nearly 14% of the new company's equity, and they followed behind to drink soup, and they were not dissatisfied.

Deng Feng even praised Xia Jingxing for his loyalty. He promised to open up high-quality bids to them before, and then he really opened up. He didn't break a word.

The only one who feels less comfortable with this deal is Yang Haoyong.

After being tossed about like this, he and the management's shareholding has fallen below 30%, and he feels like he has been reduced to working for capital.

Immediately, he comforted himself that every gain must be lost. Although he lost a large amount of equity, the company was one step closer to success.

After the press conference was over, Xia Jingxing was about to hold a celebration banquet. Seeing Yang Haoyong in a suit and leather shoes sitting alone in a corner, Xia Jingxing walked over and put his arms around his shoulders.

"What are you thinking? Something on your mind?"

Yang Haoyong was taken aback by Xia Jingxing's sudden appearance, and then put on a happy expression, shaking his head, "No, I'm tired from speaking just now, just take a rest."

Xia Jingxing obviously didn't believe these words, and he could roughly guess where the other party's unhappiness came from.

Sighing, Xia Jingxing enlightened him, "Hao Yong, you haven't fully realized the significance of this round of financing and merger. From today onwards, you are the overlord of classified information advertisements.

As long as there are no moths in the future, it will be steady and steady, and it will be listed on the market after two or three years.

I know that you actually have some opinions on the merger. You don’t think much of 58.com, and you always think you can beat them.

Can beat them all at no cost?

The price paid is a round of financing, and the equity will also be diluted. At the same time, there may be a stalemate and a situation where each other burns money.

How can it be safe to come now?

Now that the size advantage has been formed, as long as other capital is not stupid, they will not spend money blindly on this track, because the golden window period has been missed, and the hope of victory is slim.

The rest of the competitors, whose market share is not even a fraction of yours, without capital support, will die naturally waiting for them.

Therefore, if there is no accident, there is no need for large-scale financing in the future, and the market share will be steadily increased, and the revenue and profit will be increased until the listing. "

Yang Haoyong nodded, he knew what Xia Jingxing said, but it was not so easy to think about it.

Yao Jinbo was betrayed by capital, which made him feel sad.

He is thinking, if one day he can no longer create profits for capital, or if others create greater profits, will capital sell itself.

This is very possible, and it is definitely not his guessing.

The shares in their hands are indeed a little less, and the right to speak is all in the hands of capital.

Seeing that Yang Haoyong seemed worried, Xia Jingxing said again: "I don't intend to control Ganji.com, look at this round of financing, Vision Capital didn't come to an end, allowing the equity to be diluted.

We have enough equity now, enough to get a good return after going public, no more ideas.

Otherwise, I'll spend 20 million dollars in, and I'll directly give you a controlling stake. Believe it or not? "

Hearing this, Yang Haoyong's simple and honest round face was full of smiles.

"Daren, am I that stingy in your heart? I have also worked at Facebook, and I know how rich you are. How can you think of me as a small stall."

Yang Haoyong didn't say anything on the scene, he was really completely relieved of Vision Capital.

Previously, Vision Capital took control of Ganji.com by only one point of equity, and he was sweating at that time.

Now that Ganji and 58 merged, Xia Jingxing gave up the benefits and control right at his fingertips, and chose to let go, which made him feel relieved a lot.

Strictly speaking, he and the management are now the largest single shareholders.

The shareholding structure is much more reasonable than before.

"You just need to understand. Ganji.com was targeted by the capital behind the competitors before. Now that the crisis has been lifted, what lies ahead of you is a bright future."

Xia Jingxing raised his head and smiled softly, "It's time for me to retire, the rest is up to you, just don't let me lose money from this investment."

"I will never let you lose money, I promise." Yang Haoyong patted his chest bang bang, and looked at Xia Jingxing sincerely.

"Okay, waiting for your good news."

Xia Jingxing patted Yang Haoyong on the shoulder, smiled and walked away.

He has no idea of ​​controlling Ganji.com, and he doesn't have that much energy to take care of these industries. He is already satisfied with nearly 30% of the shares. Let Yang Haoyong work for him. He, the real largest shareholder, sits behind the scenes and counts money. There is nothing wrong with it. of.

Through this incident, they can also indirectly express their attitude to the outside world and to all the invested companies. Vision Capital is not the kind of barbarian who wants to seize control of the company, but a partner that truly accompanies entrepreneurs to grow and can be relied on.

At the same time, this matter can also effectively attack those members of the Junior One League and accelerate their differentiation and demise.

Following the corpses of these people, Envision Capital will firmly sit on the throne of the number one VC in China and enjoy various benefits and potential benefits.