My Age of Investment

  Chapter 771 Strategic merger

  A few days later.

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

  After the merger of the two parties, Ganji.com will officially change its name to Ganji 58 Group, or Ganji for short.

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

  The two companies originally picked one randomly, and the market share exceeded that of other classified advertising players several times.

  After the merger, this market gap will be widened to more than ten times, and it will no longer be a weight class with other competitors, and the track-dominant players will be born.

  At this time, there is no such thing as Internet anti-monopoly in China. No one jumps out and talks about it. At most, I feel that the winner of the information classified advertising track has no suspense.

  What made many invited reporters feel no suspense was the Series B financing announced by Ganji 58 Group at the same time at the meeting.

  This round of financing was led by Northern Lights to invest US$10 million. Today, Capital and several other old shareholders in the same city jointly invested US$10 million.

  Among them, only US$10 million will be injected into the newly born Ganji 58 Group.

  Another 10 million U.S. dollars will be used to acquire nearly half of the 58 shares held by Yao Jinbo and the management.

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

  This is also in line with human nature.

  Yao Jinbo knew that he had done something unwelcome. He took tens of millions to leave completely and look for opportunities again, which is the best choice for him.

  In addition, today’s capital and several other institutions collectively hold more than half of 58.com’s equity, which will be combined into the new Ganji 58 Group for a price of more than 10 million US dollars, and will obtain additional new shares.

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

  The new Ganji 58 Group will be valued at 70 million U.S. dollars, and it is claimed to be valued at 100 million U.S. dollars in external publicity because of the premium effect of the merger.

  Only internally, Envision Capital has reached a cooperation agreement with several institutions such as Capital Today, and there is no injection of water on the valuation issue, which has made all parties generally satisfied.

  Finally, after the merger, Envision Capital will hold 28.22% of Ganji Wuba Group through its multiple funds, which is a lot lower than the original holding of 49.38%, but the intrinsic value has increased a lot.

  Xu Xin is very satisfied with this merger plan, because today the capital has obtained 15% of the shares of the new company. When the company is listed, the return on this investment will be very impressive.

  Several small institutions that waved behind her also acquired nearly 14% of the shares of the new company. They were able to take a sip of soup behind her, and there was nothing to be dissatisfied with.

  Deng Feng even praised Xia Jingxing for his loyalty. He promised to open up high-quality targets to them, and then he really opened up, without breaking his promise.

  The only person who feels uncomfortable with this transaction is Yang Haoyong.

  After such a toss, he and his management have already held less than 30% of the shares, and there is a feeling of being reduced to working for capital.

   Then he comforted himself that if there is gain, there will be losses. Although he has lost a large amount of equity, the company is one step closer to success.

  After the press conference was over, preparing to hold a celebration banquet, Xia Jingxing saw Yang Haoyong, who was in a suit and leather shoes, alone in the corner, seemingly a little unhappy, and walked over to take his shoulders.

   "What do you think? Something on your mind?"

  Yang Haoyong was taken aback by the sudden appearance of Xia Jingxing, then put on a happy expression, shook his head, “No, I just got tired from talking, just take a break.”

  Xia Jingxing obviously didn't believe this statement, he could roughly guess where the other party's unhappiness originated from.

   sighed, Xia Jingxing enlightened: "Hao Yong, you haven't fully realized the significance of this round of financing and merger. Starting today, you are the overlord of classified information advertising.

  As long as there are no moths in the back, we will fight steadily. After two or three years, we will be on the market steadily.

  I know that you actually have some opinions on the merger. I don’t like 58.com. I always think that I can beat them.

   can beat them, don’t they cost it?

  The price paid is a round of financing. Equity will also be diluted. At the same time, there may be a stalemate and a situation of burning each other's money.

  Where is the stable one now?

  Now that the volume advantage has been formed, as long as other capitals are not stupid, they will not blindly throw money on this track, because the golden window has been missed and the hope of victory is slim.

  The market share of the rest of the opponents is not as good as your fraction. Without capital support, what awaits them will die naturally.

  Therefore, if nothing else, there is no need for large-scale financing in the future. We will steadily increase market share, increase revenue and profit, until it goes public. "

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

  Yao Jinbo was betrayed by capital, giving him a feeling of sadness.

  He wondered, if one day he can no longer create profits for capital, or if others create greater profits, capital will sell himself.

  This is very possible, and it is definitely not a guess.

  There are indeed fewer shares in their hands, and the right to speak is all in the hands of capital.

  Xia Jingxing saw that Yang Haoyong seemed to have worries between his eyebrows, and then said: "I don't have any intention of controlling Ganji. Look at this round of financing, Envision Capital has not ended, and the equity is allowed to be diluted.

  We now hold enough equity, enough to get huge returns after listing, no more ideas.

  Otherwise, I'll drop in 20 million US dollars and directly give you the holding, do you believe it or not? "

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

  "Dalun, am I so stingy in your heart? I have also worked on Facebook, knowing how worthy you are, and where I will be worthy of this small shop."

  Yang Haoyong didn’t say anything about the scene, he was truly relieved of Vision Capital.

  Before, with only one point of equity, Envision Capital took control of Ganji. He was sweating at the time.

  Now, when Ganji merged with 58, Xia Jingxing gave up his handy interests and control rights, and chose to let go, which relieved him a lot.

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

  The shareholding structure is much more reasonable than before.

   "Just understand. Ganji.com was targeted by the capital behind its competitors before. Now the crisis has been resolved, and the road ahead of you is Broad Avenue."

  Xia Jingxing raised his head and smiled mildly, “I should also retire, and the rest is up to you. Just don’t let me lose money on this investment.”

   "You will never lose money, I promise." Yang Haoyong banged his chest, 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 does not have the idea of ​​controlling Ganji, nor does he have so much energy to take care of these industries. He is satisfied with holding nearly 30% of the equity. Let Yang Haoyong work for him. His true largest shareholder sits behind the scenes and counts money. There is nothing wrong with him. of.

  Through this incident, it is also possible to indirectly show their attitude to the outside world and to all invested companies. Envision Capital is not the kind of barbarian who wants to seize control of the enterprise, but a partner who can truly accompany entrepreneurs to grow up and can rely on.

  At the same time, this incident can also effectively attack the gang of Junior One League and accelerate their division and demise.

  Stepping on the corpses of this group of people, Envision Capital will sit firmly on the throne of the first VC in China and enjoy various benefits and potential benefits.

  (End of this chapter)