Rebirth of the Internet Overlord

{Time: April 11, 2005}

{Location: United States-California Germany-Frankfurt}

The battlefield of the next era?

What kind of situation is that?

When David Sacks hung up Ning Zimo's Feixun, his mind always unconsciously extended into that imaginary world.

But no matter how hard he tried, he couldn't outline the phantom that he had finally constructed with relatively real and precise lines.

This is probably the biggest difference between them and Ning.

While the future was not even a mirage in their minds, it always had a concrete image in Ning Na.

This may be the real reason why he became the leader of the Paypal gang.

Dong Dong Dong…

Sachs was distracted when there was a knock on the door.

He responded and saw the secretary pushing the door open.

A slight smile appeared on her lips, and she simply said, "Boss, that Mr. Hans who left just at noon, he wants to ask you to have a detailed talk again."

We just finished talking at noon, but we need to talk about it in detail.

I'm afraid there are some new changes here, right?

"This time he attended as his deputy, and the main person in charge was Google's vice president of operations, Sheryl Sandberg."

Is it that female Google executive?

Hearing this, Sachs raised his eyebrows unconsciously.

It seems that the person who came to visit this time really wanted to talk about something substantive.

Thinking of this, Ning's words suddenly appeared in Sax's mind:

The seal of this pocket is held in your hand,

As long as you stay calm, you will definitely gain an unexpected result...

A two-year, 500 million contract is too conservative! If we continue with this line of thinking, what kind of result will Ning describe?

***+***

Delaware is a state in the middle of the Atlantic coast of the United States. This state with a population of less than one million has vast forest resources. Perhaps it is because of this geological feature that the News Group, which originally belonged to Adelaide in Tai O Village, is located in

In December 2004, the headquarters was moved to Delaware and officially settled.

Entering 2005, News Corporation's headquarters has been operating in Delaware for more than four months, and the new office location has already been put into operation.

And today, on the morning of April 11, a special guest came to the main conference room of the group headquarters.

This "guest" is only in his 30s. Although he is very young, the meeting he participated in cannot be ignored by the executives of News Corporation present.

because,

This young man,

He has the same surname as the head of News Corporation.

His name is James, his full name is James Murdoch, and he is the second son of Rupert Murdoch, the head of News Corporation.

In 2003, James had already served as the president of British Sky Broadcasting Company, and by 2005 he was 33 years old. This time he came to the News Corporation headquarters not to report on his work, but for a very important matter!

Standing next to the lower seat, James Murdoch glanced at the people present, and gestured to the projection behind him with one hand: "It's time to officially open the huge market for online advertising!

In 2004, the Internet advertising market share in the United States exceeded 12.5 billion. This share increased by 35% compared with the market share in 2003.

Nowadays, you can almost witness with visible speed that the Internet advertising business is gradually recovering from the downward curve of US$8 billion in 2000.

If this trend continues, after this year, we can still expect a growth rate of more than 35% for this market, which will increase the Internet advertising market share to 17 billion this year."

On the projection screen shown by James Murdoch, everyone can clearly see a set of rather tortuous data curves. That is the growth curve of the US Internet advertising market in the past 10 years.

From less than 60 million in revenue in 1995 to 8 billion US dollars in the year of the Internet bubble, this is a steady climb.

Then it fell to the low point after the Internet bubble of US$7.1 billion in 2001, but returned to the gradually rising curve again.

US$7.9 billion in 2002;

US$9.3 billion in 2003;

Until 2004, it was US$12.5 billion.

Finally, in the ppt given by James Murdoch, there is a big question mark on the curve point of the 2015 vintage.

When their sights gradually climbed along the year curve to the big question mark on the top of the mountain in 2015, James Murdoch's voice reached their ears again.

"In the past nine years, we at News Corporation, as one of the giants in the media industry, have watched an emerging advertising market be established from scratch. Then, we have watched this new market gradually erode the market share of our traditional advertising industry.

.

I don’t know what you think when you see this emerging market growing so rapidly. Could it be that in the future, we will still do nothing, and then look at this growing market, but we still don’t have a place...

…”

James Murdoch didn't even look at his father when he spoke.

There was no need, because he had communicated with his father, Rupert Murdoch, long before he participated in this meeting.

They have already reached a consensus,

News Corp can no longer stick to the rules as before.

It is important to stick to traditional media, but it is time to develop to the Internet!

"...Yahoo, Google, and Bing, these three companies have jointly won 50% of the market share in the past 2004. This also means that the Internet is not only a booming new industry, but also a monopoly.

Characteristics of emerging markets…”

James Murdoch was very satisfied with his speech, because those old men who had been undisciplined in the past were focused enough in today's meeting.

This means that what he took out today must have hit their pain point.

This is certain, because this is the market that my father intends to participate in.

He just used his own mouth to poke open the hole.

"James... According to you, we should win over one of the three companies: Yahoo, Google, and Bing. In this way, we will not fall behind in the Internet era?"

Someone stood up in the space he deliberately set aside, and James was very satisfied with his performance. But the content he mentioned was not at all on point.

But that's okay, I don't need very smart board members.

James shook his head in good time, "No, gentlemen. After all, Yahoo is a company with a market value of 100 billion in 2000. Their size is more suitable to be a member of our alliance..."

"Then...are we going to acquire Google or Bing?"

The man thought for a while and said this again, but what he said was still not on point.

James no longer hid, "No, gentlemen. Whether it is a portal website or a search engine, these have little to do with our original business of News Corporation. Therefore, there is no need for us to get involved."

???

The man looked at James curiously, and their conversation had already attracted the attention of everyone present.

Seeing that his goal was finally achieved, James turned directly to the ppt on the next page.

“Our target will not be any company with a high advertising share like Yahoo, Google or Bing. Instead, our target is a company that is just gradually growing.

This emerging Internet company was founded in 2002. It did not perform well in 2003, but in 2004 it gradually found a way to make profits and won 60 million advertising shares..."

"It's only 6000w..."

"You underestimate this company too much. Although it only captured 60 million advertising shares in 2004, it has 145 million users, 50% of which are local users in the United States." James shook his head and said with a smile, "And

It is precisely because its market share in the past year was not large enough, but it was large enough. Therefore, we were able to win this company at a smaller price."

After a pause, James smiled and said, "They have users but don't know how to use them. If their users are in our hands, we will definitely create higher profits than they currently have."

"Myspace?" The man frowned and asked, "James, how much money do you think we need to invest. And then, how much profit can we make?"

"With an investment of 300-500 million, we will definitely be able to occupy more than 3-5 times the Internet advertising share of the investment in 2-3 years..." James Zhan shrugged and smiled, "Just like the Internet has developed since 1994.

Like the advertising market, if myspace is acquired by us, it will definitely have an excellent growth curve."

***+***

Just as News Corp.'s shareholder meeting was underway, a new negotiation was also going on as scheduled at the MySpace headquarters in Mountain View, California.

Sitting in the Myspace conference room, Sheryl Sandberg frowned slightly. She couldn't accept the unreasonable troubles made by the founder of Myspace for a while.

Hans told her before she came that the other party seemed to have deliberately created competition in previous negotiations.

But she doesn't care about these small details.

She just wants to be quick!

With the power of thunder,

At a relatively suitable price,

Obtain important social user advertising resources for Google.

Because Google couldn't wait any longer, Bing kept pressing forward and they didn't even have much time for Google to respond.

If Bing continues to develop like this, Google may be overtaken by Bing this year.

But where did the founder of MySpace named David Sachs get the confidence to raise the advertising price so high when he saw himself participating in negotiations?

Thinking of this, Cheryl couldn't help but remind her, "Mr. Sachs, we at Google are indeed very sincere in coming here this time, but please be sure to take our negotiations seriously.

We have no reason to believe that after knowing that we are participating in the competition, Bing will not suddenly increase the advertising price to 500 million a year for no reason!

To know this value of advertising investment, it has never been seen in the Internet industry..."

"Just because this has never happened before, this huge investment itself has extremely high advertising value."

Sacks faced the beautiful vice president of operations at Google and was not worried that his asking price would anger her.

Just start the price on the ground, and then make counter-offers all over the place.

If he dared to scream, she would have to pay him back.

I made such a big bag, just waiting for someone from Google to get into it. He who is holding the mouth of the bag must keep it closed no matter what.

"Mr. Sacks, I have reason to remind you. Bing's operating income in the past year was about 1.4 billion, but they invested too much money in the cost of traffic acquisition. So, you are considering the short-term advertising revenue of 500 million a year.

, or consider a long-term return of at least three years..."

Three years?

Sachs laughed secretly in his heart.

It seems that Ning is right again.

Google is in desperate need of a breakthrough.

In that case, let's talk to them slowly...