Global Monopoly of Technology

Luo Sheng paused for a moment and continued to speak after taking a sip of water to moisten his throat: "In addition, the shareholders of Bluestar Technology Group should jointly agree on a new agreement today, and we will jointly agree on the stocks issued before the A round of financing, namely B shares have 30 voting rights per share, and later called A shares also include all publicly traded, 1 voting rights per share. B shares cannot be circulated in the market, and can only be sold if they are exchanged for A shares, while A shares It can never be converted back to B shares.”

The vast majority of Class B shares of Bluestar Technology Group are in the hands of founders and executives. It is worth mentioning that 12% of Class B shares are held by SoftBank Capital, Goldman Sachs Capital, Venture Capital Fund, IDG Fund, JP Morgan, Huajin Securities six hands.

They each hold a 2% Class B stake.

Only when capital is increased, the Class B equity held by the founder team will be automatically converted into Class A equity.

The 2% of the shares held by these six VCs were purchased directly from Luo Sheng, and they were transferred, so they were still Class B shares, with 20 voting rights per share.

In theory, after the equity of the founder team of Bluestar Technology Group continues to be diluted, the 12% equity may shake Luo Sheng's control over the company, because after the IPO, each shareholder's equity will be further diluted. Sheng himself has to cash out, and the team members who follow his struggle will definitely cash out, so the cash out will dilute the equity.

In fact, when Luo Sheng transferred his 12% equity to cash out, except that he played a trick to make the VC trapped by Bluestar Technology have to pay to buy it to prevent him from messing with the company's assets, these VCs There are also other considerations, that is, the shares that have taken a fancy to the transfer are Class B shares.

As long as the 12% Class B shares have more than 34% of the voting rights in the company on a certain day, Luo Sheng cannot absolutely control the Bluestar Technology Group, because the resolution of major issues needs to be passed by more than 67% to take effect, otherwise, only 34% % objection will not pass.

Therefore, when the six major investors heard Luo Sheng's words, their expressions changed.

I was very angry, because at this time, the 12% of the Class B shares held by them and the Class A shares held by other VCs had only 15% of the voting rights, so Luo Sheng could not be stopped at all.

I thought this was a foreshadowing that might happen some day in the future, in the next decade and a few decades.

But now, when they heard Luo Sheng's proposal, the six major investors suddenly felt that this was a bait thrown to them. It was because of a lot of factors that they were willing to give Luo Sheng money and let him cash out. Only the capital created the Côte d'Azur company with US$100 million.

I thought I wanted to dig a hole for Luo Sheng, but I didn't expect to be clever but mistaken by wisdom,

The six major investors were amazed, this young man is really shrewd to the core, and he is no worse than those old foxes at such a young age.

What a clever little ghost!

"Mr. Luo, I really can't understand whether this is considered a waste of resources. While you are requesting to jointly establish a limited partnership company, Bluestar Technology Group, you have to serve as a GP. This has given you the absolute ability to If you control the power of Bluestar Technology, why do you have to reshape the equity structure of Bluestar Technology Group itself? Is this not a waste?" Paul Watson, who came to the shareholders meeting on behalf of Goldman Sachs, said, although he knew Luo If Sheng was determined to do this, no one could stop him, but he still had to say something.

In order to express the person in charge, Luo Sheng also explained: "Mr. Paul, I do not agree with your opinion. The purpose of jointly establishing a limited partnership is to isolate some maliciousness before the IPO. Once the company is listed, the stock will be in the second The level market is circulating, and none of us know who owns how much equity in Bluestar Technology Group. If these people ask to check the company's accounts today, tomorrow 10% of them will form a partnership to apply for the dissolution of the company. This kind of purely disgusting thing, We're going to isolate."

"And the agreement just now is also to avoid the company's development being affected by too much external interference after the company goes public. This is to ensure that the interests of all Bluestar Technology Group's beneficiaries are not harmed."

Paul Watson was expressionless and stopped speaking. Although he was reluctant, there was no way at this time to stop Luo Sheng from strengthening his control over the company.

Other shareholders looked at each other, or whispered to each other, or shrugged helplessly.

When Luo Sheng proposed the agreement, it meant that 12% of Class B shares would also be converted into 1 Class A share with 1 voting right.

And Luo Sheng's proposal made the famous investors present instantly think of a company - Berkshire Hathaway.

Obviously, Luo Sheng is learning the routine of Warren Buffett, Paul Watson and the others also found that Luo Sheng is a person who pursues long-term interests rather than immediate interests. In this respect, he is exactly the same as Buffett.

This is the result of Qin Weimu helping Luo Sheng's staff plan behind the scenes. He is just the finalist, but it cannot be denied that Qin Weimu also referred to the structure of Buffett's Berkshire Hathaway.

This is very necessary. Luo Sheng is very clear that Wall Street will do everything possible to intervene and control any listed company. It is best to kick the founder out of the company and constantly require the company to meet quarterly revenue expectations.

When people on Wall Street have a big say in a public company, they even demand that the entire board of directors be removed to be directly managed by them, and the list goes on and on.

Just last year, there was a similar major event. The removal of Yahoo's board of directors on Wall Street in 2004 was the most typical example of recent events.

Before deciding on this new top-level architecture design, Qin Weimu carefully studied Buffett's successful experience and found that one of them is that people inside the company must have an absolute say.

That is voting rights.

Subsequently, the shareholders meeting began to vote, and the result was that the vote was passed without any suspense.

Just go through the process.

Qin Weimu had already drawn up the articles of association of the company law and the shareholder agreement, and signed it on the spot after voting.

Luo Sheng doesn't give them any chance to repent and react. When someone refuses the visa, although it won't fundamentally change anything, disputes are always annoying, and you have to devote your energy to dealing with these bullshit things.

After the new agreement, the face value of Class B shares of Bluestar Technology Group is 30 times that of Class A shares, but the voting rights are 200 times that of Class A shares. A shares can never be converted into B shares, while B shares can be converted at any time. into A shares.

It not only recovered the 12% equity of the six major investors, but also further strengthened Luo Sheng's control over the company. As a result, after the strengthening of B shares, the value of each share was as high as tens of thousands of dollars.

This is not only impossible for retail investors, but also for dynamically managed funds. No matter how many Bluestar Technology stocks an investor buys from the market, as long as Luo Sheng holds no less than 9% of the stocks, he can have an absolute majority of voting rights .

As a result, coupled with the limited partnership structure, Bluestar Technology Group is listed, and it is basically impossible for Wall Street to directly interfere with the company's development.

Luo Sheng's equity control method of Bluestar Technology Group has become the target of many new startups to imitate in the future.

There is even a joke widely circulated in the industry: If you are an entrepreneur, if you are confused on the road to entrepreneurship, please study Bluestar Technology Group, he will tell you what to do, this is a long-term and shrewd company. If you can learn three points from the company in your bones, it will also benefit greatly.

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