Rebirth of the Internet Overlord

Why must we get involved in social networking? Ning Zimo had the clearest answer to this question early on. Because in the previous life, no matter in the Internet era or the mobile Internet era, there were three monopolistic traffic systems.

Google, Amazon, Facebook, they almost work together to share most of the world's Internet traffic and profits.

Google occupies 80% of the global search share and 90% of the search advertising share. In its previous life, it had revenue of US$136.8 billion and net profit of US$26.3 billion in 2018.

Amazon sells goods all over the world and quickly occupied half of the cloud computing market. In its previous life, its revenue in 2018 was US$232.9 billion and its net profit was more than US$10 billion.

And what about the social traffic system represented by Facebook?

Facebook,

photo wall (instagram),

Three major brands,

Helping Facebook's parent company capture 75% of the global social advertising market share, the total revenue of this report card is less than 1/4 of Amazon, or even less than 1/2 of Google, but their profit margin of nearly 40% for the whole year has made them

Net income pushed to US$22.1 billion.

Compared with the 19% profit margin of Google's search system and the 4% profit margin of Amazon's e-commerce, Facebook, which represents social networking, leads the system revenue category with a 39% profit margin and a net profit of US$22.1 billion.

Regardless of whether Bing can gradually replace Google's search dominance in the previous life, in the social field, Facebook now has YouTube, Twitter, photo walls and more in Ning Zimo's hands. This means that Facebook in this life will be bigger than in the previous life.

The social ecosystem also means that Ning Zimo will control the greater social revenue in the future.

This is a good thing,

After all, as soon as it enters the mobile Internet market, especially after developing its own chips, Emperor Penguin will invest more and more in various aspects in the future. And if it wants to expand the Treasure Digging Mall this year, the cost of automated warehouses and goods will suddenly increase.

, the income from the social field is naturally the main source of funds that can be fed back to these fields.

The important thing is that once Apple and Qualcomm react in the mobile Internet, once Microsoft and Yahoo understand that Bing search dominates, once Amazon realizes that Dibao Mall is its biggest competitor, the profit income of the social system represented by Facebook will be

The emperor penguin is an important support to fight against the major giants on its own.

Because the social ecosystem does not sell any products to users and does not require much investment. But the social ecosystem can make a lot of money by selling users to advertisers!

"For the whole year of 2007, the total revenue of Facebook and YouTube was US$1.5 billion, of which advertising revenue accounted for 85%, third-party application revenue accounted for 4%, and game revenue revenue accounted for 7%.

As the main customers of advertising revenue, McDonald's, Nestle, Dell and various banks contribute 35% of the total advertising revenue to us. The remaining revenue comes from our sidebar advertising, recommended positions and other click-through advertising parts.

If we only count Facebook's current net profit margin, this part is as high as about 50%. However, because we need to continue to invest in video content production costs on YouTube, Twitter still has a loss of nearly 40 million, so our overall profit on social platforms has been

Dropped to 31%.

But fortunately, today's Q1 and Q2 quarters are very good. In the past six months, our compound growth rate has reached 62%, and our social network has brought us US$1.2 billion in revenue, and the total profit has also increased to 35%."

Although the financial report for the first half of the year was in the hands of Ning Zimo, Sheryl Sandberg still blurted out several clear figures.

Ning Zimo listened to Cheryl's analysis and nodded while looking at the financial report, "This means that the funds we can currently use are 800 million US dollars."

"Yes, but it is best not to use all of the 800 million to acquire MySpace. At least 1/5 should be reserved as working capital." Cheryl handed Ning Zimo a document and explained, "This

This is a report I made after the iPhone zero launch on how social platforms will develop in the mobile Internet era. It lists in detail the investment we need to make in game applications in the second half of the year, as well as the R&D investment in mobile Internet platforms.

"

Ning Zimo took the document smoothly, but his mind jumped and quickly grasped Cheryl's important information about the funds.

"$640 million? That's enough. MySpace is not worth much now. Besides, I don't think we will encounter any competitors to compete with us for the hot potato of MySpace."

"Well," Cheryl nodded and smiled, "MySpace has not been as prosperous as it was after the order from Google expired. After all, MySpace has not found the right direction since it was acquired from News Corporation.

.”

"Traditional media switched to social media, and if we want to achieve results, we Internet people are not as good as us." Ning Zimo smiled.

This was indeed the case for MySpace in the previous life. Although their two hippie cultural founders had made MySpace big early on, they were indeed not experts in the Internet industry. Moreover, after News Corporation entered, they continued to disperse News Corporation's advertising business to MySpace. This

It also contributed to the defeat of MySpace by Facebook.

Thinking of this, Ning Zimo couldn't help but curled his lips and said, "Mr. Murdoch Sr. is a big mouth. He said back then that he could buy MySpace back for 580 million and sell it for 6 billion a month later."

Well. Now it seems that the Murdoch family is not used to being on the Internet, so we’d better get rid of them as soon as possible.”

"Is 640 million enough?" Cheryl wondered.

"That's enough," Ning Zimo raised his lips, "because we won't buy it if it exceeds 500 million."

Cheryl smiled and said, "They paid 3 billion when they acquired MySpace. If you tell them this, will they vomit blood at the negotiation table?"

"Vomiting blood?" Ning Zimo also laughed, "It's really possible, but who will let them make their own mistakes?"

Cheryl smiled and shook her head, then pointed to the document handed to Ning Zimo and said, "Then I don't have to worry about the funding problem, because the management and I got the iPhone zero you gave us at the end of May.

After doing sufficient research, we feel that in the mobile Internet era you mentioned, we really need to make readjustments in the social ecology. Now it seems that we can still leave ample funds for reinvestment."

"This is necessary, very necessary." Ning Zimo looked at Cheryl and couldn't help but admire, "I'm still very lucky that I invited you to be the CEO of Facebook, because when Mark's eyes became clearer,

When things get narrower and narrower, only you can lead everyone to move more smoothly in the social field."

Cheryl frowned slightly when she heard this, but finally couldn't help but sigh and said, "You better not blame Mark for what happened today~~ because he, like Evan, when they put all their energy into various surprise projects

When you are developing, you don’t have much time to think about your strategic layout in the social ecosystem.”

The Evan in Cheryl’s mouth is Evan Williams. As early as 2002, Evan Williams and Meg Houlihan, the partners who founded Blogger, were invited by Ning Zimo to join

In the entire system of Red Man Project Company.

In the past few years, the celebrity program and blogs have provided a lot of help to Ning Zimo’s social ecology and Bing ecological chain. Today’s celebrity program is still moving forward under the leadership of Jennifer’s former subordinate Jenny, and the founder of the blog

Evan Williams and Meg Houlihan already hold positions within Twitter, and Evan Williams is Twitter’s CTO.

In the current development of Facebook, Twitter, and YouTube, except for YouTube founder Chen Shijun who is far away in Germany, Mark Zuckerberg and Evan Williams are not developing as well as in their previous lives.

Ning Zimo knew this, but it was not a bad thing.

"Don't worry about Mark and Evan. When Peter Thiel was the CEO of PayPal, our CTO of PayPal, Max Levchin, also focused on the technology field. This is how I became the COO of PayPal."

Opportunity.”

Both Facebook and Twitter need people who focus on the technical field. From the very beginning when these two projects were acquired and founded, Ning Zimo had already positioned himself for the founders of the two projects.

It’s not that Facebook and Twitter don’t need people with brains. They do, but they don’t need too many voices. In the previous life of Facebook, didn’t Mark Zuckerberg stand in front of Cheryl? In this life,

In terms of social ecology, Cheryl and Chen Shijun are enough!

"Because in terms of social ecology, you will be the leader in the United States, and Chen Shijun will help you in Europe." Ning Zimo smiled slightly, "I plan to integrate Facebook, Twitter, YouTube, etc. within three years.

The social ecology is packaged and listed, so I say that your burden will be heavier in the future."

…

After a brief chat, the acquisition intention and price of MySpace were confirmed, and the time was also confirmed again, starting from Monday, June 16th.

But as soon as he came to Facebook on the morning of June 16, Ning Zimo saw Cheryl walking over with an unkind look on her face.

"Someone is involved in the acquisition of MySpace. Now MySpace wants to sit back and watch the fight."

Ning Zimo was puzzled, "Except for us, how could anyone take a fancy to MySpace at this time?"