Rebirth Capital Entertainment

Chapter 23: Advertising Business

Although Chinese people in the United States do not feel safe, Kaos knows the future situation after all, so he is not so panicked.

I go to and from school as normal every day, and go to Google on weekends from time to time to check the latest developments.

After the Kaos algorithm submitted a patent application, Carson submitted more than 40 patent applications one after another without any instructions, including various new functions on Google's website, as well as patents on page design.

.

It seems that they have applied for all the patents they can think of, hoping to build a thick wall around the company's business and keep out all competitors.

Kaos does not encourage or prevent such behavior. Patents are a protection for a company's business and can also enhance a company's competitiveness in the industry. However, such things have advantages but also disadvantages.

.

The fortress you built isolates the enemy, making it difficult for your opponent to compete with you. In this case, you will either die comfortably without an opponent, or you will be overtaken in a corner and suddenly appear in front of you.

Kill you in the future.

However, both of these situations will only occur when the company reaches its peak. Now is the early stage of Google, so it is still very beneficial to establish a patent wall.

For example, several large VCs such as Red Shirt Capital have collectively increased Google's valuation, reaching a maximum of US$800 million.

"That's almost it. Let's start the charging mode."

In the office, Kaos looked at the latest data report and nodded with satisfaction. After nearly six months of development, Google's daily search volume has increased again, reaching more than 100 million times.

.

After reaching this level of quantity, it will be difficult to make a big improvement in a short period of time. This is due to the current problem of computer penetration. If it continues to be promoted, it is not impossible to improve, but the ratio of money spent to final gain is completely uneconomical.

So Kaos gave up the idea for the time being.

"No problem. If you don't start charging, I'm going to ask you what to do next."

Carson smiled and nodded in agreement. The 10 million US dollars invested by Kaos when the company was established has been almost consumed now. If he hadn't known that Kaos had money in his hands and could invest it in the company at any time, he would have been there sooner.

I couldn't help but suggest bringing in capital.

"Haha, don't worry, I'm very confident in our charging model."

Kaos looked at Carson and laughed. In the early days of Google's development, he specifically did not enable the charging model. This was not only for the rapid development in the early stages, but also to avoid attracting too many people's attention because of the good income.

You must know that for Internet companies in this era, losing money is the main theme. Because Yahoo was the first to have income, it was valued and pursued by capital, and became a miracle in the Internet era.

But this miracle is now actively acquiring and blocking other Internet companies, fearing that someone will develop and affect their own status.

Under such an environment, coupled with the fact that red shirt capital is constantly looking for targets to add fuel to the increase in Yahoo's stock price, Kaos is even more unwilling to let Google be too conspicuous in its initial development.

Now, with the saturation of marketing and the establishment of patent fortresses, even if other companies enter the online search market, it is no longer so easy to affect the development and status of Google. At this time, Kaos can rest assured

Be bold.

"Well, I hope so."

Carson smiled, shrugged helplessly, turned and walked out of the office. Unlike Kaos, although he was also optimistic about Google's future, he was even more optimistic about the huge traffic.

As for Google's revenue, it is impossible to be sure, and it is impossible to predict the market's reaction before doing things like advertising charges, so there is no specific revenue expectation.

Under such circumstances, Carson would naturally not place all his hopes on advertising revenue, but would instead focus on the entry of capital and listing financing.

....................................................

American Red Shirt Capital Headquarters

"Hasn't Google agreed to our equity investment?"

Mike Moritz looked at his subordinates in the conference room, his brows furrowed together, and his index finger tapped the desk gently, making a "thump...thump..." sound, as if it was tapping on the desk.

On everyone's mind.

"We have offered 800 million, but the other party still refused. However, according to our intelligence, the 10 million funds in the other party's hands should be used up. They will definitely agree to our next proposal, otherwise the capital chain may be broken.

It's over." A person in charge of the negotiations looked at the somewhat annoyed Mike Moritz and reported helplessly.

"The capital chain is broken? Hum... But the news I received is that they have just launched an advertising business, and it seems to have received a lot of popularity."

For the staff of a company like Red Shirt Capital, it is naturally impossible to just focus on Google alone. Especially a department like his, which became famous because it is responsible for Yahoo’s VC. Naturally, it is also responsible for related Yahoo!

Business.

Keep a close eye on the market, look for companies that are beneficial to Yahoo's business, invest in them in advance, and then broker the sale to Yahoo.

In this way, they can not only make a lot of profits, but also push Yahoo's stock price to another peak. This is a win-win model. Major American companies can develop into giants because of this.

reasons.

When Google first appeared, he had his eye on this company. The other party's online search engine would definitely be a great help and improvement to Yahoo's business, but the other party had never relented and agreed to raise capital and become a shareholder.

This also left Mike Moritz with no good solution, but because no other VCs had successfully invested in shares, he was not very nervous and thought that he could give him time to wait. After all, he also understood that some companies were wary of VCs entering the market.

and the idea of ​​​​increasing the company's valuation.

But as long as you want to go public, you must avoid these VCs. At the same time, Google has also proposed the highest share that can be transferred, which also makes Mike Moritz feel that cooperation can be reached soon, and naturally he becomes very confident.

.

But now there are new changes. Google's valuation has reached 800 million. According to the shares they previously agreed to sell, the first 20% of the shares will cost 160 million US dollars. This has already been done in VC's first investment.

It's a very high number.

When he took the lead in investing in Yahoo, his first 25% stake was only US$1 million.

Therefore, Mike Moritz's patience with Google has reached its limit. He can't continue to raise prices. But at this critical moment of negotiation, Google has proposed advertising charging business. If the performance is good, for him

He said it meant that he would continue to raise prices. How could he not be angry?

"What?"

Following Mike Moritz's words, all the staff present started whispering to each other, looking very panicked and confused.

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